Despite a 3.8% dividend yield and a solid free cash flow generation, I don't think Pfizer (NYSE:PFE) offers a compelling risk/reward, even if the stock is trading at 10x EV/EBITDA 2017.
Thus, in this article, I will focus on a quantitative valuation of the company without taking into account any potential M&A that Pfizer could announce in 2017/2018, which looks unpredictable, to assess if there is any upside in the company, as standalone entity.
Base Case
DCF analysis, with inputs slightly below analyst estimates, shows that Pfizer's valuation doesn't look attractive.
