Replies to post #379485 on Elite Pharmaceuticals Inc (ELTP)

[namtae]

P/E RATIO BY INDUSTRY
Based on our understanding so far about the importance of the PE ratio, here is a compilation of values as per industry. As is seen, the range of value varies from one industry to another. Thus investors must use the right values to arrive at profitable investment decisions.

Industry Name Drug Manufacturers - Specialty & Generic
PE Ratio 16.82

Last Updated: March 2023

https://eqvista.com/price-to-earnings-pe-ratios-by-industry/

Thoughts?

[The ELTP King]

LMFAO!

CONVENIENTLY leaving out R&D expenses which is completely voluntary and is for future growth and would make Elite much more profitable if they weren't included.

Correct, timing isn't right. We do not have the earnings to push growth. Our earnings (i.e. profit) pretty much justifies our share price if one is looking for a PE ratio typical of a generic drug company. Sure a high tech start up can pull in a PE of 20 and higher. But the average generic drug companies PE ratio is reported as being 10 to 15 (depending on the year and which set of companies are included in the grouping) with many below 5. Elite doesn't have the debt problems of the big generic companies below 5 but they do have the problem of a product line that is too heavily dependent on a single product. If Adderall has problems so does Elite.

Elite's earnings per share this year assuming 2 million profit a quarter = 8/1000 = .008.
PE = .03/.008 = 3.75.