Tag Archives: P/Cash

The Rise and Fall of Undervaluation

If “price to cash” is a usable metric for fair value of a risky biotech (i.e. valuation of a biotech vs what its cash balance is at the bank), then the cheap times are long gone. Back at the end of 2008 we had a record 24% of biotechs trading below cash. Investors were making the assumption that the previous reported cash balance was already being spent and additions to the balance were in jeopardy. Read More >

Inside BIO Industry Analysis  |  Leave a comment  |  Email This Post
Tags: , , , , ,