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 its historical averages in all the valuation metrics reported hereafter. However, profitability is below the historical baseline. Ratios are mixed for pharmaceuticals: price/earnings is fair, price/free cash flow is excellent, but price/sales and return on equity are very bad. Other healthcare industries are significantly overvalued. Healthcare equipment is the worst-looking one combining all metrics. Life science tools/services is the only