SGP has 20 PE. The other drug stocks are kind of similar. PFE will probably make close to $2.25. Even at 17 times PE, it should be worth $38. And historically it has always traded higher than 17 times.
What's going on? Did I miscalculate before buying the stock?
As Hotpanera first pointed out, PFE can't hope to trade back up where it did before Torcetrapib was cancelled in December. That catastrophe left the company with no strategy for replacing lost Lipitor sales.