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Ascendis Pharma (ASND): Revisiting Valuation After Recent Pullback and Strong 1-Year Shareholder Returns

Simply Wall St·12/19/2025 19:34:35
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Ascendis Pharma (ASND) has quietly given back some ground over the past week, even though its longer term performance remains strong. With shares near 200 dollars, investors are weighing solid growth against ongoing losses.

See our latest analysis for Ascendis Pharma.

Despite the recent 7 day share price return of negative 9.4 percent, Ascendis still boasts a robust year to date share price return of about 45 percent and a 1 year total shareholder return of roughly 47 percent. This suggests momentum is cooling rather than collapsing as investors reassess growth versus ongoing losses.

If Ascendis has sharpened your focus on innovative drug makers, this could be a good moment to explore other opportunities across healthcare stocks for fresh ideas beyond a single name.

With analysts seeing over 30 percent upside and an intrinsic value that still implies a sizable discount, the key question now is simple: is Ascendis undervalued, or is the market already pricing in its future growth?

Most Popular Narrative Narrative: 22.5% Undervalued

With Ascendis Pharma last closing at 199.8 dollars against a narrative fair value of about 257.66 dollars, the story frames a sizeable upside driven by aggressive growth and margin expansion over the next few years.

In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 19.8x on those 2028 earnings, up from -38.3x today. This future PE is greater than the current PE for the US Biotechs industry at 15.5x.

Read the complete narrative.

Curious how a loss making biotech is modeled to flip into strong profitability and command a richer multiple than its peers, all within a few years, without the market blinking first? The full narrative lays out the bold revenue ramp, margin lift, and earnings bridge behind that confidence.

Result: Fair Value of $257.66 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained upside still hinges on continued blockbuster uptake for SKYTROFA and YORVIPATH, as well as on avoiding regulatory or competitive setbacks that squeeze margins.

Find out about the key risks to this Ascendis Pharma narrative.

Build Your Own Ascendis Pharma Narrative

If you see the story differently or want to stress test the assumptions with your own research, you can build a fresh view in minutes: Do it your way.

A great starting point for your Ascendis Pharma research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.