Vaccine values have recently left the Dax, Dow Jones and other world indices far behind. The performance is top notch. The lists have exceeded all expectations, especially for NovaVax. But BioNTech and Moderna as well as Valneva have clearly beaten Dax and Dow Jones. What’s next?
Who is the strongest? Dax, Dow Jones or BioNTech and Co.?
In any case, BioNTech managed a premium of 5.75% on Friday. However, the company was not No. 1 among vaccine stocks. No. 1 share on Friday was Novavax. The price increased by 18.6 per cent. By comparison, vaccine companies now appear to be significantly stronger than the indices. Is that right?
However, the news situation has not given significant impulses here. Vaccine values have only benefited from one circumstance at all. Novavax should now have a chance to be approved in the United States. The FDA, the local health authority, is considering a report on whether there is a possibility or need to approve Novavax as an alternative vaccine on the market. On the one hand, the consideration is understandable, as Novavax is based on a different principle than the mRNA vaccines.
Perhaps some vaccine skeptics can also be persuaded in the United States. In return, it was just a minor consideration – no more. With an increase of just over 18% for Novavax, this consideration can be considered exaggerated, as prices have not improved from an economic point of view.
Should investors sell right away? Or is it worth starting at BioNTech?
BioNTech seems to have been influenced by this stream of news as well as Moderna. In any case, as was the case for Dax or the Dow Jones, there was hardly any significant new information on the market. It seems that the market is currently speculating a lot and hardly paying attention to the economic development.
The question is whether the vaccine manufacturers have nevertheless earned this good development financially and can now use them again at rising prices.
A message based solely on the company’s emotions could help. Federal Health Minister Karl Lauterbach has brought monkey cups to the public as a new topic. In the first two weeks of June, politicians expect as many as 40,000 units of vaccines. This, in turn, can affect mood, experts say.
However, overall economic conditions have not improved as much as recently. However, the valuation is still relatively cheap. BioNTech currently has a price earnings (P / E) of almost 5 – based on this financial year’s results.
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Cheaper than Dax: BioNTech
In this way, BioNTech is more favorably valued than the leading German index Dax. The price-to-sales ratio for 2022 is also quite favorable at BioNTech, around 2.3. With 2.9, however, the price-book ratio (KBV) is significantly more expensive or higher than, for example, Dax.
Does it make BioNTech expensive?
In any case, the stock has a valuation that is roughly in line with Moderna, its US competitor. Moderna currently has a P / E ratio of 4.8. The price-to-value ratio for Americans is around 2.5, which is equivalent to that for BioNTech. Moderna also has a PBV of 3.9 and is therefore rated higher than both Mainz-based BioNTech and the overall market, such as the leading German index Dax.
Nevertheless, the two companies had even better values than the Novavax share, which is now doing so well. With a price-to-earnings ratio of 1.9, Novavax must also be considered very cheap. KUV is also very cheap at 0.8. On the other hand, Novavax is currently trading at a negative P / E. P / B, or price-to-book, indicates that the company’s balance sheet may have problems.
The latest gain of just over 18% on Friday is therefore a reaction to the good news described above, but is still questionable from the economically oriented analysts based on the balance sheet data.
The actual economic figures for Valneva are even worse. The French company has still not been able to provide reliable indications that it will be approved by the EMA, the EU approval authority. The stock exchange listings are therefore also weaker than the competitors from BioNTech, Moderna and Co. Valneva enters the new stock market week with a plus of 1.5% from Friday. Prices are obviously too expensive when the P / E ratio is consulted. Based on the current data, the P / E ratio is in red – Valneva may take losses. This is all the more likely as there is no new good data for the company that could represent a rescue here.
In this respect, the favorable price-to-sale ratio (P / S) of 3.5 is a good indication, but not so good, that competition from BioNTech or Moderna should be impressed. In fact, Valneva’s KBV of 6.9 is again significantly higher and more demanding than in the Dax or Dow Jones index.
In other words, as BioNTech and Moderna enter the new week, BioNTech and Moderna look more stable after recent events, although not as much as Novavax’s listings rose last Friday. The trend ultimately speaks for BioNTech if another argument is sought. BioNTech trades 4.6% above the GD100, the medium-term significant trend signal that technical analysts like to trust.
Buy, hold or sell BioNTech?
How will BioNTech develop now? Is a post worth it, or should investors rather sell? Find out the answers to these questions and why you should act now in the current BioNTech analysis.