How to value a Pharma or Chemical company?
I am based out of India. We have quite a few companies in pharmaceutical and chemical space.
Pharmaceutical companies are more into generics or branded generics, CDMOs, APIs.
Chemical companies more so of commodity, specialty, agri based.
To me they all seem like commodity type companies. But since they keep growing, the multiples are quite high.
How does one value such a company. I understand every sector or category of companies grow one point in time. How to identify? Were you able to find value in a company which grew a lot? How did you do that? How much was it on chance or luck?