Pfizer Inc. (NYSE:PFE)

The financial ratios demonstrate notable trends over the analyzed periods, reflecting changes in market valuation relative to earnings, operating profit, sales, and book value.

Price to Earnings (P/E) Ratio

The P/E ratio exhibits a general decline from 20.15 in early 2021 to approximately 7.44 by the end of 2022, indicating a decreasing market valuation relative to earnings during this time. Subsequently, a sharp increase is observed in late 2023, reaching a peak of 73.42, before declining again to about 14.06 by the end of the observed period in 2025. This spike suggests a temporary surge in investor expectations or reduced earnings during that quarter, followed by a normalization trend.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio descends steadily from 22.85 in early 2021 to 6.74 by the end of 2022, reflecting improving operating profit margins or reduced market valuation. This ratio then experiences a significant peak at 121.63 in late 2023, coinciding with the spike in the P/E ratio. Afterwards, the ratio decreases substantially, stabilizing around 10 by 2025. The pronounced spike suggests an unusual volatility in operating profit or market valuation within this timeframe.

Price to Sales (P/S) Ratio

The P/S ratio shows a gradual downward trend across all periods, starting at 4.84 in early 2021 and moving to roughly 2.2 by mid-2025. This consistent decline indicates a reducing price premium relative to sales, possibly due to either improving sales figures, a market correction, or shifts in investor sentiment towards sales growth prospects.

Price to Book Value (P/BV) Ratio

The P/BV ratio decreases steadily from 3.27 in early 2021 to about 1.49 in mid-2025. This pattern indicates a declining market price in relation to the book value, which may reflect changes in asset valuation, increased tangible asset base, or adjustments in market perception of the company’s intrinsic value over time.

Overall, the data suggests an initial period of declining valuation multiples from 2021 through 2022, followed by a substantial and short-lived surge in valuation ratios near late 2023. Subsequently, the multiples show a tendency towards stabilization at lower levels than the initial quarters. The volatility in P/E and P/OP ratios during this spike likely points to transient factors affecting earnings and operating profit. Meanwhile, the P/S and P/BV ratios display more consistent downward trends, implying a longer-term adjustment in market valuation metrics relative to sales and book value.

The analysis of the quarterly financial metrics reveals significant fluctuations and evolving trends over the observed periods. The three key indicators examined include share price, earnings per share (EPS), and the price-to-earnings (P/E) ratio.

Share Price

The share price demonstrated an initial upward trend from April 2021, rising from $40.10 to a peak close to $49.95 by July 2022. Following this peak, the price experienced a steady decline through to October 2023, reaching a low near $27.55. In the subsequent periods toward mid-2025, the price stabilized somewhat around the mid-$20 range, fluctuating between approximately $23.87 and $29.74, indicating a period of volatility and market adjustment.

Earnings Per Share (EPS)

EPS showed substantial growth from 1.99 USD in April 2021 to a high of approximately 5.58 USD by December 2022. Thereafter, the EPS trend reversed sharply, declining to a marginally negative EPS around -0.46 USD by June 2024. Following this trough, EPS rebounded gradually, achieving values close to 1.89 USD by September 2025. This pattern indicates a period of strong earnings growth followed by a significant profit contraction, with signs of recovery emerging in the latest quarters.

Price-to-Earnings (P/E) Ratio

The P/E ratio corresponded with fluctuations in earnings and share price. Initially, P/E decreased from approximately 20.15 in April 2021 to a low near 7.44 by April 2023, reflecting rising earnings relative to share price. However, with the sharp drop in EPS, the P/E ratio surged dramatically to an elevated level (up to around 73.42) in late 2023, indicating market uncertainty or overvaluation relative to earnings at this time. Post this peak, the P/E ratio decreased again, settling within a range of roughly 13 to 37 by mid-2025, suggesting normalization as earnings recovered.

Overall, the data illustrates a cycle marked by strong earnings growth and rising share price in the early period, followed by a pronounced earnings downturn and falling share price. The P/E ratio movements underscore the market's uncertainty during the earnings decline and hint at cautious optimism as financial performance begins to improve. This dynamic points to transitional challenges in the company’s operating environment and investor sentiment, with potential for continued recovery moving forward.

The analysis of the quarterly financial data reveals several notable trends in key financial metrics over the examined periods.

Share Price

The share price exhibited a rising trend in the early part of the timeline, peaking around the third quarter of 2021 at approximately $49.73. Subsequently, there was a gradual decline with some fluctuations, descending to a low of $26.10 by the fourth quarter of 2024. In the most recent quarters, the share price stabilized somewhat in the mid-20s range, showing minor fluctuations around $24, indicating a period of relative steadiness after a significant downward adjustment.

Operating Profit Per Share (OPPS)

The operating profit per share followed an overall rising trajectory from the beginning of the timeline, starting at $1.75 and increasing steadily to a peak of $6.22 by the last quarter of 2022. After this peak, there was a notable decline in profitability, with values dropping sharply to negative figures by early 2024. Following the trough, OPPS showed signs of recovery, gradually rising back to positive territory around $2.61 in the third quarter of 2025. This pattern suggests a period of strong operational performance followed by challenges affecting profitability, then a gradual recovery phase.

Price to Operating Profit Ratio (P/OP)

This ratio decreased significantly during the first half of the period, implying that the share price grew more slowly than operating profit or that the market valued the company increasingly on its operational earnings, with the ratio falling from 22.85 to approximately 6.74 by the last quarter of 2022. However, from this point onward, the ratio sharply increased, reaching an extremely high and somewhat anomalous value of 121.63 by the fourth quarter of 2023, coinciding with the drop in operating profit per share into negative territory. After this spike, the ratio fell back to more moderate, though still elevated, levels ranging from about 9.49 to 27.24 through to mid-2025. This volatility in the P/OP ratio mirrors the operational profit fluctuations and suggests market uncertainty or revaluation during periods of declining profitability.

In summary, the data reveals an initial phase of growth in share price and operating profit per share, followed by a period of operational decline and high valuation volatility. The recent quarters show signs of earnings recovery accompanied by stabilized share prices. The fluctuation in the price to operating profit ratio highlights changing market perceptions tied closely to the company's profitability dynamics throughout the period under review.

Share Price Trend

The share price exhibited an initial upward trajectory from $40.1 in April 2021, peaking at $49.95 by July 2022. Subsequently, it demonstrated a consistent decline, dropping to $42.3 by December 2022 and further decreasing to approximately $24.3 by September 2025. This pattern indicates a significant depreciation in market value over the long term after an early period of growth.

Sales Per Share Trend

Sales per share increased steadily from $8.28 in April 2021, reaching a peak of $18.05 by July 2022. Following this peak, sales per share decreased progressively to $9.87 by March 2024. A period of stabilization with minor fluctuations ensued, ranging between $9.87 and $11.23 through September 2025. This suggests that sales growth slowed considerably after mid-2022, with moderate recovery attempts but no clear sustained upward momentum.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio started relatively high at 4.84 in April 2021 but showed a declining trend, falling to 2.37 by December 2022. There was a slight rebound in early 2024, reaching 3.0 by March 2024, followed by another gradual decrease to around 2.2 by late 2025. This indicates that the market valuation relative to sales contracted over the period but experienced intermittent short-term corrections.

Overall Insights

The initial increase in both share price and sales per share until mid-2022 points to a phase of strong business performance and favorable market sentiment. However, the subsequent and sustained decline in share price, paired with declining sales per share, reflects deteriorating operational results or market outlook. The reduction in P/S ratio underscores a reassessment of the company's valuation relative to its revenue generation capability. In the later periods, while sales per share show some stability, the market valuation remains subdued, suggesting cautious investor sentiment or challenges in achieving growth expectations.

Share Price Trend

The share price exhibited a general downward trend from early 2021 through 2025. Starting at $40.10 in April 2021, it peaked at $49.95 in July 2022, then declined steadily to a low of approximately $23.87 by March 2025. A slight recovery was observed following that, with the price reaching around $24.75 in June 2025 and $24.30 in September 2025. This trend indicates a loss of market value over the analyzed period after an initial rally.

Book Value Per Share (BVPS) Trend

The BVPS showed a consistent upward trend from April 2021 through around October 2023, increasing from $12.26 to approximately $17.17. This suggests an improvement in the company’s net asset base on a per-share basis. However, from late 2023 to mid-2025, BVPS experienced some fluctuations, including declines to about $15.48 in June 2024 and brief recoveries thereafter, ending near $16.32 by September 2025. Overall, the book value per share maintained a higher level than the starting point, indicating a strengthening of equity value despite some volatility.

Price-to-Book Value (P/BV) Ratio

The P/BV ratio showed a clear downward trajectory throughout the period. It began at a relatively high ratio of 3.27 in April 2021, increased briefly to a peak of 3.78 in July 2021, then declined steadily, falling below 2.0 by the end of 2023. The ratio continued to decline to approximately 1.49 by September 2025. This diminution reflects the stock price’s decline relative to its book value, suggesting decreased investor confidence or market expectations despite the growth in book value per share.

Summary Insights

The analyzed data reveal a disconnect between the company's increasing book value per share and the declining share price. While the company's net asset base per share grew steadily, market valuation diminished significantly over the four-year span, as indicated by the decreasing P/BV ratio. This pattern may imply market concerns regarding future earnings potential, external market factors, or risk perceptions that outweigh the positive asset growth. The decline in share price alongside improved book value suggests a potential undervaluation or shifts in investor sentiment affecting market performance.