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Biotech / Medical : Biotech Valuation
CRSP 52.20-5.5%Nov 12 3:59 PM EST
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To: Biomaven who wrote (162)4/13/1999 10:14:00 AM
From: scaram(o)uche  Read Replies (2) of 52153
 
I guess what is going on here is that the street is (consciously or not) using a
valuation model that awards a high multiple to earnings but uses a very high discount
rate until such time they are sure the sales are for real. This has the effect of
flattening out the valuation curve until the very end, where it grows very steeply.

Yup. However, this is not consistent with historical pricing in the sector, so..... do you bet that this situation will perpetuate, or that sanity will return to valuations for patents and pipes?

Now, I ask.... is my bias obvious in the wording of that question, or what??

- g -
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