Biotech shares in the Nasdaq now trade at almost 50 times their earnings over the past year, compared with a price/earnings ratio of 27.5 for the overall Nasdaq Composite. Nasdaq biotech shares trade at 31.5 times their expected earnings over the next 12 months, above the 21 ratio for the overall Nasdaq market, according to FactSet Inc.
Interesting. RGEN now trades at well over 100 times their earnings for the past year and trades at well over 100 for expected earnings over the next 12 months.
Whoops, forgot. A forward looking PE of 30 applies to Biotech companies. RGEN is not a Biotech. RGEN is a medical supply company and everyone know that Medical Supply companies command a forward looking PE of over 1000.