Wall Street Says This Growth Stock Is a Buy, but Is It Overvalued?
A struggling economy and a bear market haven't been able to stop Vertex Pharmaceuticals (NASDAQ: VRTX). Over the past year, the company's shares are up by 17%. And Wall Street continues to be enamored with the drugmaker, which has a consensus buy rating, according to Yahoo! Finance. But Vertex looks expensive when going by traditional valuation metrics.
A price-to-sales (P/S) ratio between 1 and 2 is usually considered in the "reasonably valued" range. Vertex's forward multiple comes in at more than four times the upper bounds of this range. Also, the company's forward price-to earnings (P/E) multiple is higher than that of the biotech industry, which is currently about 15. Should investors stay away from the stock?
Source Fool.com
Vertex Pharmaceuticals Inc. Aktie
422,25 €
-0,05 %
Die Vertex Pharmaceuticals Inc. Aktie zieht viel Aufmerksamkeit auf sich: Viel mehr Buy- als Sell-Einschätzungen.
Ein Kursziel von 440 € für Vertex Pharmaceuticals Inc. zeigt ein leicht positives Potenzial im Vergleich zum aktuellen Kurs von 422.25 €.
