Fundamental Analysis of Pharmaceutical Companies

Abstract

“Risk comes from not knowing what you’re doing.” These simple yet powerful words by the legendary investor Warren Buffett are the main driving forces of this paper. Investing is by no means a simple process and this paper is a step to help anyone associated with and having knowledge of stock market investments to climb the first ladder towards a brighter investment future. The paper focuses on fundamental analysis of 17 global level competing pharmaceutical companies. The main classification used to categorize the companies was the type of drugs they make i.e., branded, generic and oncogenic. Within this broad classification, the companies have been chosen on the basis of their leading revenue numbers. The paper considers 14 important fundamental ratios that help determine which stock is moving high in the market, in the concerned industry, based on both macroeconomic and microeconomic factors. These ratios can also be used to calculate investment prospects for other sectors.