What’s PEG-ratio? 🤔
💊 #Pharma may look pricey, but what happens when you factor in growth?
This week we’re diving into #PEGratio, where valuation meets momentum.
Which companies are true growth bargains and who’s coasting on hype?
Let’s find out!
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Company Snapshots 🔍
2024 PEG snapshot:
📈 #NovoNordisk – growth outpacing valuation → undervalued standout.
⚖️ #Novartis, #Merck, #AstraZeneca – solid growth, but P/Es are sky-high.
🚫 #Sanofi, #GSK, #Ipsen – negative earnings growth = PEG not meaningful.
PEG = P/E ÷ growth → simple in theory, tricky in practice!
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Margin of Safety, Friend or Trap? ⚖️
Here’s the test:
• PEG < 0 → ❌ not measurable
• PEG > 0 → calculate fair value = price ÷ PEG
• Margin of safety = 1 – PEG
In pharma, that means:
➡️ Three companies excluded entirely.
➡️ The rest priced above implied value.
Result? Very little safety across the board!
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Peer Check 🧑🔬
Novo Nordisk: rare mix of growth + fair valuation.
Everyone else? Either overpriced or unmeasurable …
So, the market still rewards the story, *not* the numbers. In over-hyped sectors, only data separates winners from noise. 🤷
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What’s Next? 🔗
Pharma didn’t shine on #PEG + most look expensive for their growth.
Next up → #ROIC: the real test of efficiency and capital discipline.
Full breakdown + graphs → https://thebarnblog.substack.com/p/finding-undervalued-companies-using
Follow #TheBarnBlog for smarter screening, one metric at a time 👊
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