S. B.

Pfizer: A Case Study of the Market's Extremely Low Valuations

The market values things based on its best guess of future earnings. The market doesn't care about past earnings, which is basically all this article talked about. When generic Lipitor becomes available in a couple of years, the earnings are going to take a big hit. The current price may or may not be fairly discounting that earnings decrease.

Equity valuation is not as simple as merely noting the P/E is low relative to the last couple of years of earnings. A computer with no context can tell you that.