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    Relay Therapeutics (RLAY): Valuation Check After Encouraging New Zovegalisib Breast Cancer Data

    Simply Wall St·12/25/2025 23:21:07
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    Relay Therapeutics (RLAY) just put fresh clinical data for its PI3K alpha inhibitor zovegalisib in front of oncologists at the San Antonio Breast Cancer Symposium, and the subset analysis immediately sharpened the stock’s risk reward profile.

    See our latest analysis for Relay Therapeutics.

    The zovegalisib update lands after a sharp rebound in sentiment, with a roughly 97 percent 90 day share price return and a 104 percent one year total shareholder return, even though the five year total shareholder return remains deeply negative and keeps longer term holders cautious.

    If this kind of asymmetric setup appeals to you, it could be a good moment to also scan other innovative healthcare stocks that might be poised for their own inflection points.

    With zovegalisib’s subset data driving fresh enthusiasm and the stock still trading at a hefty discount to analyst targets despite big recent gains, investors now face a pivotal question: is this a genuine buying opportunity, or is the market already pricing in Relay’s next leg of growth?

    Price-to-Book of 2.5x: Is it justified?

    On a price-to-book basis, Relay Therapeutics screens as modestly undervalued, with its 2.5x multiple sitting below both the biotech industry and a tighter peer group.

    Price to book compares the company’s market value to its net assets, which can be a useful reference point for early stage, loss making biotech names where earnings are not yet meaningful. For Relay, this lens highlights how investors are valuing its platform, pipeline and cash against a still substantial accumulated deficit.

    Relay’s 2.5x price to book ratio sits slightly below the broader US biotech industry average of 2.7x, and meaningfully beneath a peer average of 5.7x, suggesting the market is not assigning a premium despite the strong revenue growth outlook. If sentiment continues to improve around zovegalisib and the wider pipeline, that gap to peers is a level the share price could move toward over time.

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

    Result: Price to book of 2.5x (UNDERVALUED)

    However, investors still face meaningful risk from Relay’s steep losses and trial execution, and any clinical setback could quickly compress that current discount to targets.

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

    Build Your Own Relay Therapeutics Narrative

    If you see the numbers differently or want to stress test your own thesis, you can build a personalized Relay view in minutes using Do it your way.

    A great starting point for your Relay Therapeutics research is our analysis highlighting 1 key reward and 4 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.