With a forward P/E ratio of nine, a dividend yield of 3.9%, $48.6 billion in revenue in 2019, and a market cap of $75 billion, Bayer (OTC: BAYRY) is the cheapest stock in the large-cap pharmaceutical sector. The company has also underperformed year-to-date, falling 5% compared to the S&P 500's nearly 1% decline.
With the stock so cheap, value investors are probably wondering why they shouldn't go ahead and put a large chunk of it in their portfolios. If a stock is trading significantly below its peers' valuations, it usually means something has gone terribly wrong with its business operations. Let's take a look at what's behind Bayer's underperformance.
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Source Fool.com