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    A Look At Viridian Therapeutics (VRDN) Valuation After Positive REVEAL-1 Phase 3 Elegrobart Results

    Simply Wall St·04/04/2026 00:31:47
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    Viridian Therapeutics (VRDN) just reported positive topline Phase 3 REVEAL-1 data for elegrobart in active thyroid eye disease, with both dosing schedules meeting key proptosis and diplopia endpoints versus placebo.

    See our latest analysis for Viridian Therapeutics.

    Even with the encouraging REVEAL-1 topline readout, Viridian’s recent 7 day share price return of 33.19% and 30 day share price return of 35.74% show momentum has faded. However, the 1 year total shareholder return of 48.93% still reflects earlier optimism.

    If this kind of clinical news has your attention, it can be useful to broaden your watchlist with other potential opportunities in healthcare and biotech, starting with 37 healthcare AI stocks

    With Viridian trading at US$18.84, screens flag an intrinsic discount of about 88% and a value score of 2. Yet recent returns show sharp share price weakness, raising the question of whether this is a reset that opens an opportunity or whether the market is already factoring in the road ahead.

    Preferred Price-to-Sales of 27.2x: Is it justified?

    On simple metrics, Viridian looks expensive, with a P/S ratio of 27.2x compared to both the US Biotechs industry average of 11x and a peer average of 12x, even though the SWS DCF model flags the shares as trading well below its estimate of future cash flow value.

    The P/S ratio compares the company’s market value to its revenue, so a higher multiple usually reflects investors placing a premium on future growth or the quality of that revenue. For a business like Viridian that is currently loss making, P/S often becomes a primary reference point because earnings are still negative.

    Here, the gap is significant. A 27.2x P/S is more than double the industry and peer benchmarks, and it also sits far above the estimated fair P/S ratio of 0.1x that regression analysis suggests the market could move toward over time if expectations shift.

    Explore the SWS fair ratio for Viridian Therapeutics

    Alongside that, the SWS DCF model estimates a future cash flow value of $160.81 per share versus the current $18.84, implying a large intrinsic discount while the company remains unprofitable and focused on developing treatments for serious and rare diseases. The DCF approach projects future cash flows and discounts them back to today, so it tends to put a lot of weight on long run revenue growth and eventual profitability for a business like this.

    Look into how the SWS DCF model arrives at its fair value.

    Result: Price-to-Sales of 27.2x (OVERVALUED)

    However, recent share price declines and ongoing net losses of $281.928 million highlight execution and funding risks that could quickly shift sentiment around the apparent discount.

    Find out about the key risks to this Viridian Therapeutics narrative.

    Another View: DCF Points the Other Way

    While a 27.2x P/S ratio makes Viridian look expensive versus the Biotechs industry and peers, the SWS DCF model tells a different story. It estimates future cash flow value at $160.81 per share compared with the current $18.84, which looks very cheap on that lens. Which signal do you trust more right now?

    Look into how the SWS DCF model arrives at its fair value.

    VRDN Discounted Cash Flow as at Apr 2026
    VRDN Discounted Cash Flow as at Apr 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Viridian Therapeutics for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 62 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Next Steps

    After all this, do the risks or the potential rewards feel more important to you right now? You can take a closer look at both sides by reviewing the 2 key rewards and 1 important warning sign

    Looking for more investment ideas?

    If Viridian is on your radar, do not stop there. Widening your search with targeted stock lists can help you spot opportunities you might otherwise miss.

    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.