Enanta Pharmaceuticals, Inc.’s (NASDAQ:ENTA) Price Is Right But Growth Is Lacking After Shares Rocket 27%
The Enanta Pharmaceuticals, Inc. (NASDAQ:ENTA) share price has done very well over the last month, posting an excellent gain of 27%. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 29% in the last twelve months.
Although its price has surged higher, Enanta Pharmaceuticals may still look like a strong buying opportunity at present with its price-to-sales (or “P/S”) ratio of 3x, considering almost half of all companies in the Biotechs industry in the United States have P/S ratios greater than 8.7x and even P/S higher than 63x aren’t out of the ordinary. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so limited.
