The American biotech companies are in terms of their price/earnings ratios cheaper than the European ones. Per US share investors pay now less the for the expected earnings per share. So it seems the markets expect less growth of them. The European biotech sector now trades with a CAPE of 22 and the US' ones trade at 28. The whole sector now trades at a quite low CAPE-ratio of 8. Illumina, Celgene are Biogen are among the top CAPE-ratios. Xencor, OCI Partners and Catalent have the lowest CAPE-ratios.
At this moment stocks of the biotech sector are surging. Over the past 3 months the sector is around 0,25 percent higher. Investors who in 2007 bought the average share of the sector now have an extreme gain of around 79 percent. Since 2012 the sector trades 54 percent higher.
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