What Is PFE Operating Income
Operating income refers to accounting profit realized after deduction of operating expenses such as raw material, R&D, marketing, sales, admin
🢒 Operating income is a reliable measure of profits because it represents income from core operations
🢒 Operating income can be used to calculate P/EBIT, which is a measure of market valuation per dollar of operating profit
 What's The Unique Content Here?
Beyond the annual and quarterly operating income and margin data, we offer the ability to compare these metrics for Pfizer with those of its direct peers, industry, sector, and category peers. The idea is to give complete information on how to analyze and use operating income metric in investment decisions
 What Are Direct And Category Peers?
Direct Peers include select companies that fully or partially compete in the same markets as Pfizer. These include Johnson & Johnson, Merck, Eli Lilly and Company, Roche, Bristol Myers Squibb.
Category Peers are companies which exhibit similarity vs Pfizer when it comes to specific financial characteristics. For example, if Pfizer is growing fast (defined as average annual growth > 15%), then one of its category peers will be companies that lie in the same growth band
 Why Do You Compare With Category Peers?
Comparison with category peers offers additional insights to aid investment decisions. The financial characteristics used to categorize these peers are also some of the commonly used filters that investors use
 What's The Purpose Of P/EBIT Comparison In Context Of Operating Income?
Higher or improving operating margin, and resultant superior operating profit growth usually command higher market valuationThis market valuation metric is called Price-To-Operating Income
ratio or P/EBIT
, where EBIT is adjusted to remove one time line itemsComparing P/EBIT among peers along side operating margin and its trend, can yield potential mispricing opportunitiesFor example, if Apple Is trading cheaper than its peers but its operating margin and trend are superior, then there is a chance that the market will correct this mispricing and Apple's stock will gain relatively more
 I Can Not Find All Peers Of PFE Here To Compare, What Should I Do?
We currently do not offer the ability to compare operating income and margin of specific tickers on demand. However, you can find similar operating income comparison page for the desired tickers by:
Open All Companies Page --> Choose Specific Ticker To Open Specific Company Page --> Navigate To 'Financials' section