Question

Can anyone tell me what should I take terminal growth rate of Pfizer (PFE).... Rather if anyone tell me historical say last ten year GDP growth rate ? Thanks

Answer 1

Try this material on economic growth.

Answer 2

Given that PFE is the big pharma with very long projects pipe, it's better to do direct cash projections for 10 or more years and then take average GDP growth of 3,3% as the base But remember that growth rate must be calculated for cash flow which would be based on that GDP growth rate.