FNCE3001: You are Considering Investing in Pfizer (NYSE: PFE). You will Need to Make an Investment: Introduction to Financial Instruments & Markets Assignment, PU, Singapore

Question

You are considering investing in Pfizer (NYSE: PFE). You will need to make an investment recommendation based on the market and your theoretical value of Pfizer. This question is designed such that your answers in this question should build a company and industry profile of Pfizer and help make your final recommendation. Any assumptions that you rely upon should be clearly stated in your answer.

• Undertake an industry and company analysis for Pfizer (see supplementary resources on Blackboard and textbook chapter listed in unit outline). This question asks you to consider the factors which influence Pfizer’s share price.

• What is the current price (any date from Aug 2020) of ordinary common shares of Pfizer (NYSE: PFE)? Using an appropriate chart as a reference, describe how this price has evolved over the past 3-years, and compare the performance of Pfizer to an appropriate benchmark index.
• What has been the main driver(s) or influences Pfizer’s share price movement over the past 6 months? What do you think will impact the share price in the future? Make reference to the analysis you took in i and ii).
• Valuation multiples are often used to compare companies quickly. Identify an appropriate valuation multiple/ratio and evaluate if the company is over or undervalued using relative valuation. What are the reasons you picked the multiples that you did and how did you conclude that Pfizer is over or undervalued?