Biotech Values

[DewDiligence]

Re: Investor/analyst blind spot re steeply declining revenue_streams

PFE trades around where it did pre-Covid. Go figure.

Many investors and sell-side analysts have a blind spot when it comes to valuing steeply declining revenue streams, IMO. Since they can’t simply apply a “multiple” to arrive at a valuation for such revenue streams, they may end up mentally applying a multiple of zero, creating a sizable market inefficiency. PFE’s COVID revenue (and profit) could be Exhibit “A” for this phenomenon.