Question: Assuming Pfizer (PFE)s ROE (return on equity) is 20%, long term sustainable EPS (Earnings-per-share) growth rate is 4%, EPS1 (expected EPS next year) is $3,
Assuming Pfizer (PFE)s ROE (return on equity) is 20%, long term sustainable EPS (Earnings-per-share) growth rate is 4%, EPS1 (expected EPS next year) is $3, required rate of return k is 9%, what is the PE1 ratio and intrinsic value for PFE? (estimating sustainable payout ratio, forward PE and stock valuation)
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