This Company Generates No Revenue and Its Market Cap Is Over $20 Billion. Here's Why That Valuation May Not Be All That Ridiculous.

If a company shows a lot of potential, investors are often willing to pay a premium and take on some risk in exchange for owning a piece of the business. And in some cases, those valuations can appear extreme, especially when you consider the risk that investors are taking on.One biotech company which may be the ultimate example of that right now is Summit Therapeutics (NASDAQ: SMMT). Its market capitalization eclipsed $23 billion last week, and it has surged more than 1,100% this year. And what's astonishing is that the business has done that while generating no revenue in the trailing 12 months.It all ties back to one very promising drug in its portfolio. Here's why.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool