Investment Analysis Based on Intrinsic Value in the Information Technology and Pharmaceutical Sectors for Advancements in Digital Healthcare.

Abstract

In the annals of financial literature, the 1930s bore witness to a foundational shift with the publication of “Security Analysis” by Benjamin Graham and David Dodd, scholars at Columbia Business School. As articulated therein, value investing advocates for an analytical focus on equities priced beneath their calculated intrinsic or book values. Fundamentally, discerning investors target equities that, upon rigorous analysis, appear to be undervalued by prevailing market standards. Equities, in an economic construct, signify an entity’s ownership and proffer a claim on a specified tranche of its fiscal assets and revenues. To ascertain an equity’s intrinsic worth, investors meticulously examine a company’s foundational metrics, encompassing earnings, dividends, projected cash inflows, and overall fiscal robustness. The tenets of value investing transcend industry boundaries and are universally applicable. Whether in technology, healthcare, consumer goods, or industrial sectors, the principles remain valid, provided investors possess the insight to identify and leverage market inefficiencies. This paper aims to scrutinize prominent entities within the information technology and pharmaceutical arenas, interpreting their financial dynamics through the value investing paradigm.