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    Arcutis Biotherapeutics (ARQT): Assessing Valuation After a 133% One-Year Total Shareholder Return

    Simply Wall St·12/11/2025 04:44:07
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    Arcutis Biotherapeutics (ARQT) has quietly put up an impressive run this year, with the stock more than doubling as investors warm to its dermatology pipeline, revenue growth, and improving path toward profitability.

    See our latest analysis for Arcutis Biotherapeutics.

    That move has not been a straight line, but the recent 30 day share price return of 25.35 percent and 90 day share price return of 68.29 percent, alongside a 1 year total shareholder return of 133.12 percent, shows momentum is clearly building as the market reassesses both growth prospects and execution risk around its dermatology franchise.

    If Arcutis has you rethinking what is possible in healthcare, it might be worth scanning other innovative names via healthcare stocks for your watchlist.

    With revenue climbing, losses narrowing, and the stock still trading at a steep intrinsic discount despite only a small gap to Wall Street targets, is Arcutis genuinely undervalued or already pricing in the next leg of growth?

    Most Popular Narrative Narrative: 26% Undervalued

    With Arcutis closing at $29.77 against a narrative fair value of $40, some investors clearly see more runway left in this dermatology story.

    It is almost impossible to obtain a drug label from the FDA for pediatric use, this topical non steroidal drug ZORYVE is very safe and highly effective for both pediatric and adult patients. The drug is potent in the skin, it is not well absorbed and is quickly metabolized which limits systemic exposure and minimizes side effect risks.

    Read the complete narrative.

    Curious how a single dermatology asset could justify such a step up in value? The narrative focuses on rapid sales expansion and a future margin profile that resembles a mature specialty pharma business rather than an early stage biotech. If you want to see which growth and profitability assumptions would need to hold for that upside to materialize, and how they translate into the projected earnings multiple, review the full breakdown behind this fair value view.

    Result: Fair Value of $40.0 (UNDERVALUED)

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

    However, sustained execution is not guaranteed, as slower than expected ZORYVE uptake or competitive dermatology launches could quickly pressure both growth and valuation assumptions.

    Find out about the key risks to this Arcutis Biotherapeutics narrative.

    Build Your Own Arcutis Biotherapeutics Narrative

    If you are not fully convinced by this perspective, or would rather interrogate the assumptions yourself, you can build a personalized Arcutis thesis in just a few minutes: Do it your way.

    A great starting point for your Arcutis Biotherapeutics research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

    Ready for your next investment move?

    Do not stop at a single stock when you can scan entire opportunity sets built around cash flows, innovation, and reliable income streams in minutes.

    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.