Pfizer (PFE) Valuation in Focus After FDA Approves PADCEV Combo for Bladder Cancer

Pfizer’s FDA approval for PADCEV combined with pembrolizumab as a new perioperative approach in muscle-invasive bladder cancer is a substantial update for investors. This move expands the company’s oncology portfolio and increases its future revenue potential.

See our latest analysis for Pfizer.

Pfizer’s share price return has been steady in recent weeks, as the FDA’s green light for its new PADCEV combination marked a positive pivot after a generally tough year. Despite a robust 1-year total shareholder return of 5.3%, the stock is still recovering from a challenging three-year stretch. This hints at improving momentum amid several fresh bond offerings and regulatory wins.

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With the stock stabilizing and new regulatory milestones supporting optimism, the critical question is whether Pfizer’s current valuation leaves room for outperformance or if the market has already accounted for the next phase of growth.

Most Popular Narrative: 11.5% Undervalued

According to the most widely followed narrative, Pfizer’s fair value is set at $29.08, which is a clear premium to the last close at $25.74. The difference suggests expectations of stronger results ahead, despite recent mixed financial trends and a sector still navigating post-pandemic normalization.

“Robust expansion of Pfizer's late-stage pipeline, especially in oncology and rare diseases, with multiple high-potential launches and label expansions (e.g., Elrexfio in multiple myeloma, SV in non-small cell lung cancer, advanced ADC portfolio, and pipeline vaccines), stands to drive sustained long-term revenue and earnings growth by addressing rising global demand for innovative therapies as the population ages.”

Read the complete narrative.

What is the hidden math behind this optimistic outlook? The narrative’s fair value relies on bold margin assumptions, future earnings, and an earnings multiple lower than the industry average. Want to see the full financial playbook? Uncover the projections steering this valuation now.

Result: Fair Value of $29.08 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, potential changes in global drug pricing regulations and increasing competition in key markets could quickly undermine the current bullish outlook for Pfizer.

Find out about the key risks to this Pfizer narrative.

Build Your Own Pfizer Narrative

If you’re curious to dig into the numbers yourself or want a different perspective, it’s quick and easy to craft your own view in minutes. Do it your way

A great starting point for your Pfizer research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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