Last year, Veeva Systems (NYSE: VEEV) shares dropped by 36%, partly due to marketwide troubles, although there were company-specific issues to worry about, too. Perhaps the biggest problem with the company was its valuation. Even after the recent sell-off, Veeva Systems' forward price-to-earnings (P/E) ratio is about 38, which is much higher than the S&P 500's average of 19.

The life sciences-focused, cloud-based software specialist could justify its rich valuation metrics over the long run if there were enough growth potential. Is that the case? Let's have a closer look at Veeva Systems' business. 

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Source Fool.com