Losses for biotech sector

Lately most stocks of the biotech sector are under selling pressure. Over the past 3 months the sector is 2 percent lower. Investors who bought the average share of the sector in 2000 now have a very huge price gain of around 708 percent. Since 2012 the sector trades 313 percent higher. On average the sector delivers a poor dividend yield of 0,5 percent.

Returns biotech sector

In terms of their price/earnings ratios the American biotech companies are 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 whole sector now trades at a relatively low CAPE-ratio of 0. Among the shares with the higher CAPE-ratios we see Sartorius, Illumina Inc and Emergent Biosolutions. Pdl Biopharma, BB Biotech are Gilead Sciences among the ones with the lower CAPE-ratios.

Further we see that the European biotech sector has a CAPE of 21 and the US sector of 6. Both the US and the European sector gained the past 12 months.

The EU stocks in this sector are around 21 percent higher and the US's are 6 percent higher.

The European biotech companies now deliver more dividends then the US ones. These in Europe now yield 0,87 percent and these in US 0,09 percent. 0, 0 and 0 have now the highest dividend returns (in case the dividends per share are unchanged).

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