Is It Time To Reassess Syndax Pharmaceuticals (SNDX) After An 84% One Year Share Price Jump

• If you are wondering whether Syndax Pharmaceuticals' current share price reflects its true worth, this article walks through the key valuation checks that can help you frame that question clearly.
• The stock recently closed at US$23.88, after a 7.9% gain over the past month, a 12.1% return year to date, and 84.1% over the last year. These moves may have changed how the market views both its potential and its risks.
• Recent coverage has focused on Syndax Pharmaceuticals in the context of its sector peers and how investor expectations have evolved over time. This broader attention helps explain why the share price performance over 1 year and 3 years, at 84.1% and 18.8% respectively, is an important backdrop for any valuation discussion.
• Syndax Pharmaceuticals currently records a value score of 3/6, based on how it screens across six separate valuation checks. The next sections will compare different valuation approaches and then finish with a more complete way to think about whether the stock looks attractively priced.

Syndax Pharmaceuticals delivered 84.1% returns over the last year. See how this stacks up to the rest of the Biotechs industry.

Approach 1: Syndax Pharmaceuticals Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model estimates what a stock could be worth by projecting future cash flows and then discounting them back to today using a required rate of return.

For Syndax Pharmaceuticals, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in US$. The latest twelve month free cash flow is a loss of $323.4 million. Analysts have specific free cash flow estimates through 2030, such as $76 million in 2027 and $326.9 million in 2030, with further projections after that extrapolated rather than directly forecast by analysts.

When all projected and extrapolated cash flows are discounted back, the DCF model indicates an intrinsic value of about $84.41 per share. Compared with the recent share price of $23.88, this output suggests the stock screens as around 71.7% undervalued on this method alone.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Syndax Pharmaceuticals is undervalued by 71.7%. Track this in your watchlist or portfolio, or discover 63 more high quality undervalued stocks.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Syndax Pharmaceuticals.

Approach 2: Syndax Pharmaceuticals Price vs Sales

For companies where earnings are not yet positive, the preferred metric is often the Price to Sales, or P/S, ratio because it compares what you pay for each dollar of revenue instead of each dollar of profit. This is useful when profits are still being built but revenue traction is visible.

What counts as a reasonable P/S multiple typically reflects how fast investors expect revenue to grow and how much risk they see in the business model. Higher expected growth or lower perceived risk can support a higher P/S, while slower expected growth or higher uncertainty tend to support a lower one.

Syndax Pharmaceuticals currently trades on a P/S of 12.22x. That sits above the Biotechs industry average of 10.95x and below the peer group average of 15.48x. Simply Wall St also calculates a “Fair Ratio” of 1.76x for Syndax Pharmaceuticals, a proprietary estimate of what the P/S might be given factors such as earnings growth profile, industry, profit margins, market cap and specific risks.

The Fair Ratio can be more informative than a simple peer or industry comparison because it adjusts for this broader set of company specific drivers rather than assuming one size fits all. Comparing the Fair Ratio of 1.76x with the current 12.22x suggests the shares screen as expensive on this measure.

Result: OVERVALUED

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Upgrade Your Decision Making: Choose your Syndax Pharmaceuticals Narrative

Earlier it was mentioned that there is an even better way to understand valuation. Narratives step in as a simple way for you to attach a clear story about Syndax Pharmaceuticals to actual numbers such as your assumed fair value and expectations for future revenue, earnings and margins. You can then link that story to a forecast on Simply Wall St’s Community page where Narratives are available to millions of investors. This helps you compare fair value with the current share price to judge whether the stock looks cheap or expensive, and automatically refreshes your view when new information such as earnings or MAXPIRe data arrives. This is why one investor might build a cautious Syndax Narrative around a fair value near US$28 while another builds a more upbeat story around a fair value closer to US$56, each reflecting different beliefs about how Revuforj, Niktimvo and IPF opportunities could play out.

Do you think there's more to the story for Syndax Pharmaceuticals? Head over to our Community to see what others are saying!

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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