#nyse:cbm

New Post has been published on http://www.stockmarketsdaily.com/fundamental-pricing-study-cambrex-nysecbm/18453/

Fundamental Pricing Study: Cambrex (NYSE:CBM)

(adsbygoogle = window.adsbygoogle || []).push();

We look at Cambrex Corporation (NYSE:CBM) a company in the Biotechnology industry currently at the attention of investors, to assess if it provides value for investors considering buying or selling it. Currently Cambrex Corporation is trading at $52.78 after moving up 3.39% in the previous day of trading. [Trend Analysis]

CBM is trading with a trailing 12 month P/E multiple of 25.13 and an estimated forward P/E multiple of 21.78. The stock has an estimated 5 year annual growth of 14.96% and a PEG multiple of 1.68.

Rather than the usual Price to Earnings (P/E) multiple method, we use a slightly different method to assess if Cambrex Corporation is potentially a value buy for investors, the PEG ratio (P/E to growth). This PEG multiple takes into account the expected long term growth in earnings of the company rather than merely the growth for one earnings period ahead as forward P/E does.

That is to say, P/E simply doesn’t account for the long term prospects of CBM. As a rule of thumb, a stock with a PEG of between 0 and 1 is usually considered to be underpriced, between 1 and 2 to be at fair value and over 2 to be overpriced. Based on the PEG ratio of CBM being 1.68, we consider Cambrex Corporation to likely be priced at fair value.

This analysis means that value buyers who do not currently hold Cambrex Corporation (NYSE:CBM) should probably look for better value alternatives and investors currently holding the stock should either continue to hold or sell and look for alternatives.

New Post has been published on http://www.stockmarketsdaily.com/biotech-buy-cambrex-corporation-nysecbm/11383/

Biotech Buy: Cambrex Corporation (NYSE:CBM)

(adsbygoogle = window.adsbygoogle || []).push();

We look at Cambrex Corporation (NYSE:CBM) [Trend Analysis] a company in the Biotechnology industry, an exciting sector always driving innovation, to assess if it provides value for investors considering buying or selling it. Currently Cambrex Corporation is trading at $35.06 after moving up 3.94% in the previous day of trading.

CBM is trading with a trailing 12 month P/E multiple of 19.16 and an estimated forward P/E multiple of 18.85. The stock has an estimated 5 year annual growth of 21.05% and a PEG multiple of 0.91.

Rather than the usual Price to Earnings (P/E) multiple method, we use a slightly different method to assess if Cambrex Corporation is potentially a value buy for investors, the PEG ratio (P/E to growth). This PEG multiple takes into account the expected long term growth in earnings of the company rather than merely the growth for one earnings period ahead as forward P/E does.

That is to say, P/E simply doesn’t account for the long term prospects of CBM. As a rule of thumb, a stock with a PEG of between 0 and 1 is usually considered to be underpriced, between 1 and 2 to be at fair value and over 2 to be overpriced. Based on the PEG ratio of CBM being 0.91, we consider Cambrex Corporation to likely be underpriced.

This analysis means that value buyers who do not currently hold Cambrex Corporation (NYSE:CBM) should consider buying and investors currently holding the stock should continue holding.