Septerna (SEPN): Valuation Check After Raymond James Buy Rating and S&P Pharma Index Inclusion

Septerna (SEPN) just picked up a visibility boost, landing in the S&P Pharmaceuticals Select Industry Index after a fresh buy rating helped put it on more investors’ radar this month.

See our latest analysis for Septerna.

The index inclusion and upbeat coverage seem to be feeding into clear positive momentum, with a roughly 84 percent 90-day share price return and the stock now trading at about $29.58, while the 1-year total shareholder return sits nearer 9 percent.

If Septerna has caught your eye, this could also be a good moment to explore other potential opportunities in pharma by scanning pharma stocks with solid dividends.

With shares up sharply and trading only modestly below consensus targets, investors now have to decide whether Septerna is still flying under the radar or if the market is already pricing in its future growth.

Price to Book of 3.4x: Is it justified?

On a price to book basis, Septerna trades at 3.4 times its book value, a richer tag than much of the US pharmaceuticals space.

The price to book multiple compares a company’s market value to its net assets, a common yardstick for early stage, unprofitable biotech names where earnings are not yet meaningful.

In Septerna’s case, the 3.4x price to book ratio is above the broader US pharmaceuticals industry average of 2.4x. This suggests investors are paying a premium relative to typical peers even though the company remains unprofitable and is not expected to reach profitability over the next three years.

However, that same 3.4x multiple actually screens as reasonable against a closer peer set. It sits below a 4.3x peer average, which indicates that within its more directly comparable group the stock is not outlandishly priced and may even look like the cheaper option on this metric.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to Book of 3.4x (OVERVALUED)

However, risks remain, including slower than expected trial progress or disappointing data readouts that could quickly cool sentiment and compress today’s valuation premium.

Find out about the key risks to this Septerna narrative.

Build Your Own Septerna Narrative

If you see the story differently or want to dig into the data yourself, you can build a custom view in just minutes: Do it your way.

A great starting point for your Septerna research is our analysis highlighting 1 key reward and 2 important warning signs 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.

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