What You May Have Missed About Roivant Sciences (ROIV)


It hasn't been a great afternoon session for Roivant Sciences investors, who have watched their shares sink by -10.5% to a price of $7.16. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.

Roivant Sciences Ltd., a biopharmaceutical and healthcare technology company that researches and develops medicines. The company belongs to the Healthcare sector, which has an average price to earnings (P/E) ratio of 13.21 and an average price to book (P/B) ratio of 4.07. In contrast, Roivant Sciences has a trailing 12 month P/E ratio of -1.6 and a P/B ratio of 4.3.

P/B ratios are calculated by dividing the company's market value by its book value. The book value refers to all of the company's tangible assets minus its liabilities -- meaning that intangibles such as intellectual property, brand name, and good will are not taken into account. Traditionally, a P/B ratio of around 1 shows that a company is fairly valued, but owing to consistently higher valuations in the modern era, investors generally compare against sector averages.

Roivant Sciences has moved -16.0% over the last year compared to -19.9% for the S&P 500 — a difference of 3.9%. The company has a 52 week high of $10.16 and a 52 week low of $2.52.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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