Replies to post #85541 on Cytodyn Inc (CYDY)

[humble howard]

Yes, there are companies trading that high, especially biotech. You have to have great margins to justify that multiple, and honestly, I can't put a number on that yet. Certainly there's a lot of money managers that would never pay that, and statically stocks that sell at 1 times sales are perceived to be better investments.A couple of years ago , Amazon had a price sales ratio of 3. I believe First Trust did a study on this. I'm not saying that CYDY can't initially sell at that multiple in the future, but by any measure 10 times sales has always been expensive and you'd better have the growth to back it up.
Thanks for the post but I'm still a cautious bull.

[ohm20]

I’m not convinced what the sales multiple should ultimately be for CytoDyn but I respectfully disagree with a 1.7x multiple.

That 1.7x may work outside of biopharma but pharmaceuticals have a much higher profit margin than almost every other industry. I use 5x in my calculations.