LNTH - Healthcare And Biotechnology Dashboard - Update
This article series provides a monthly dashboard of industries in each sector of the GICS classification. It compares valuation and quality factors relative to their historical averages.
Executive summary
Biotechnology looks significantly underpriced relative to historical averages combining 3 valuation ratios, but the profitability metric is below the historical baseline. Ratios are mixed for pharmaceuticals: price/earnings is good relative to the historical average, price/free cash flow is excellent, but price/sales and return on equity are very bad. Other healthcare industries are overvalued by at least 20% and much more for some of them. Combining all