It hasn't been a great evening session for argenx SE investors, who have watched their shares sink by -25.1% to a price of $338.91. 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.
argenx SE's P/B and P/E Ratios Are Higher Than Average:
argenx SE, a biotechnology company, engages in the developing of various therapies for the treatment of autoimmune diseases in the United States, the Netherlands, Belgium, Japan, Switzerland, Germany, France, Canada, the United Kingdom, and Italy. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 30.21 and an average price to book (P/B) ratio of 4.08. In contrast, argenx SE has a trailing 12 month P/E ratio of -82.3 and a P/B ratio of 6.64.
When we divideargenx SE's P/E ratio by its expected five-year EPS growth rate, we obtain a PEG ratio of 0.32, which indicates that the market is undervaluing the company's projected growth (a PEG ratio of 1 indicates a fairly valued company). Your analysis of the stock shouldn't end here. Rather, a good PEG ratio should alert you that it may be worthwhile to take a closer look at the stock.
Negative Cash Flows With a Downwards Trend:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $36,415 | $78,462 | $78,462 | $497,277 | $497,277 | $10,026 |
| Revenue Growth | n/a | 115.47% | 0.0% | 533.78% | 0.0% | -97.98% |
