Replies to post #411567 on Elite Pharmaceuticals Inc (ELTP)

[kayak_wench]

PE for generic companies

From ChatGPT:
The average price-to-earnings (P/E) ratio for generic pharmaceutical companies as of 2024 is around 14.79. This value can fluctuate depending on specific market conditions, investor sentiment, and company performance within the sector. For comparison, major pharmaceutical companies have a higher average P/E ratio of 23.97, reflecting their larger scale and often more robust pipelines of patented drugs, which offer stronger growth potential


From article
https://www.nasdaq.com/articles/3-generic-drug-stocks-to-watch-amid-improving-market-prospects-1
Based on forward 12 months price-to-earnings (P/E F12M), which is a commonly used multiple for valuing generic companies, the industry is currently trading at 11.24X compared with the S&P 500’s 20.31X and the Zacks Medical sector’s 22.89X.