Predictions for the Revenue Status and Valuation of Biotechnology Companies Based on PEG Model

Abstract

By the time of 2023, the world is recovering from the pandemic of COVID-19. The infection of COVID-19 has become regular and under governments’ control, the world is entering post-pandemic era. During the time of the pandemic, the crisis had led to a significant increase in the revenue and valuation of biotechnology companies. However, the peak of demand has been reduced, the market is concerning about the future of these companies. This study will investigate the revenue status and valuation of biotechnology companies now, by using PEG model. According to the current situations and data, the predictions of the future will be presented as well. Based on the analysis, the peak of revenue gained and valuation of biotechnology companies have passed. The pandemic has laid an excellent foundation for them, some of the firms may successfully transfer their production capacity into other medical products also demanded in post-pandemic era, maintaining their level of revenue and valuation. However, for the most companies in this industry, it is expected that they will experience a downward trend. Overall, these results shed light on guiding further exploration of significance for the prediction and analysis of the future development of biotechnology companies and the further exploration of the way that investors choose good biotechnology companies as value investment targets.