Forest Laboratories Valuation

Forest Laboratories Investor Information

About 38.0% of the company shares are owned by institutional investors. The company has Price/Earnings (P/E) ratio of 162.3. Forest Laboratories had not issued any dividends in recent years. The entity had 2:1 split on the January 9, 2003. Based on the key indicators related to Forest Laboratories' liquidity, profitability, solvency, and operating efficiency, Forest Laboratories is not in a good financial situation at the moment. It has a very high risk of going through financial straits in February.

Forest Laboratories Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Forest Laboratories has an asset utilization ratio of 30.35 percent. This suggests that the Company is making $0.3 for each dollar of assets. An increasing asset utilization means that Forest Laboratories is more efficient with each dollar of assets it utilizes for everyday operations.

Forest Laboratories Ownership Allocation

Forest Laboratories holds a total of 30 Million outstanding shares. 30% of Forest Laboratories outstanding shares are owned by other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Forest Laboratories Profitability Analysis

The company reported the last year's revenue of 3.65 B. Reported Net Loss for the year was (31.67 M) with profit before taxes, overhead, and interest of 2.89 B.

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.

Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

If you are still planning to invest in Forest Laboratories check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Forest Laboratories' history and understand the potential risks before investing.