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Biotech / Medical : sgp(schering plough) -- Ignore unavailable to you. Want to Upgrade?

To: jbe who wrote (70)	12/4/1998 12:27:00 PM
From: JBruin	Read Replies (1) \| Respond to of 117

RE: SGP/pharmaceutical valuations There is one variable that briefing.com neglected. That is long term treasury rates. One of the core rules of finance is that you pay a higher premium for consistent growth during a low long-rate environment. In other words a company that grows at 20% might be "fairly" valued at a pe of 15 if the 30yr treasury is at 10%. But if the 30yr is at 5% that same company might be valued at a pe of 40. Now I know that SGP's pe is higher than 40, but that is where Briefing's reasons come in to play.