Shares are valued at 25.6x its market cap to revenueSince the company is losing money using a PE ratio doesn’t work, so the fallback is to use a market cap to revenue ratio. ABBV$162 billion market cap$33 billion in revenue4.9x market cap to revenueAstraZeneca$144 billion market cap$24 billion in revenue6.0x market cap to revenueGenetech/Roche$311 billion market cap$61 billion in revenue5.1x market cap to revenueMerck$193 billion market cap$47 billion in revenue4.1x market cap to revenuePfizer$208 billion market cap$52 billion in revenue4.0x market cap to revenueThese 5 companies market cap to revenue average is 4.8x. At a 10x ratio and using $1 billion in revenue per year gives a $10 billion market cap. If that is the case the increase from $25 to $69 has added $16 billion in market cap. Working back using a 10x market cap to revenue ratio would mean that Moderna’s Covid-19 revenue will need to reach $1.6 billion in revenue per year.

Source: Forbes May 23, 2020 14:26 UTC