The abnormal behaviour has be caused by covid but in pharma usual us fda issue keeps on arising. You can use this for any cyclical company or wherever there is frequent margin volatility. As things are mean reverting the margins will come so you can look at P/S and and compare it to the last 10 years of median value. If there is some demand related issue and sales have also taken a huge hit. Price to book can be considered and can be checked with it’s mean value. Obviously book value can be considered only in case of asset heavy business. This takes care of most of the valuation judgements for a lot of companies.
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