Patients Capital Management LLC@PCM_bioSharing the analyses on relative valuation, where you can see the HIGH degree of correlation with revenue growth going out 5 and 7 years. Dispersion gets wider beyond that as you would expect. $LLY $VRTX at top of range on durable franchise growth, and actually relative cheap
Patients Capital Management LLC@PCM_bioAgreed - Mike, the more appropriate charts to run are 5 Yr and 7 Yr revenue CAGRs vs forward P/E multiples. You'll see that the correlation depending on your comp set (primarily around timing of upcoming LOEs) is essentially 1...This charting will capture the terminal value