Moderna (MRNA) Wins FDA Flu Vaccine Approval On Questions Over Whether The Stock Is Fully Valued
The Food and Drug Administration has approved Moderna (MRNA) mFlusiva vaccine for adults aged 50 and over, marking the first U.S. influenza shot to use mRNA technology and expanding the company respiratory portfolio.
See our latest analysis for Moderna.
Despite the FDA approval of mFlusiva, Moderna’s share price has recently cooled, with a 1-month share price return down 32.48% and a 7-day share price return down 7.01%. However, the year-to-date share price return is up 74.53% and the 1-year total shareholder return is up 102.41%, so recent selling pressure contrasts with strong gains over the past year and a weaker 3-year and 5-year total shareholder return.
If Moderna’s mRNA progress has your attention, this could be a good moment to see what else is emerging in healthcare, including 42 healthcare AI stocks.
Moderna is adding new products while the stock has swung sharply in both directions. Is this latest pullback a signal that expectations are cooling faster than the business is changing, or is sentiment overshooting the fundamentals again as investors reassess value?
Most Popular Narrative: 21.7% Overvalued
At Moderna’s last close of $53.86, the most widely followed narrative frames a fair value of $44.25, which implies the market is asking investors to pay a premium based on future expectations rather than current profitability.
The analysts have a consensus price target of $44.25 for Moderna based on their expectations of its future earnings growth, profit margins and other risk factors.
In order for you to agree with the analysts, you'd need to believe that by 2029, revenues will be $3.7 billion, earnings will come to $695.7 million, and it would be trading on a PE ratio of 33.0x, assuming you use a discount rate of 7.3%.
Want to see what has to change for Moderna to justify that premium? The story hinges on faster revenue growth, sharply better margins, and a richer future earnings multiple. The specific mix of those three inputs is what drives the gap between $44.25 and today’s price.
Result: Fair Value of $44.25 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, there are still clear risks for Moderna if COVID and RSV vaccine demand weakens further, or if regulators tighten pricing and reimbursement more than analysts expect.
Find out about the key risks to this Moderna narrative.
Another View on Moderna’s Valuation
The analyst narrative suggests Moderna is overvalued at $53.86 compared with a fair value of $44.25. On revenue multiples, the picture is mixed. The stock trades on a P/S of 9.7x, which is lower than the US Biotechs average of 11.6x, yet far above a fair ratio of 2.5x and the peer average of 5.5x. That gap can point to room for further re rating if sentiment cools, or support if investors continue to pay up for higher forecast growth. Which outcome you think is more realistic will drive how you read these numbers.
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
If the mix of optimism and caution around Moderna feels familiar, this is a good moment to move quickly and test the numbers yourself. To see why some investors are focusing on the upside, take a closer look at the 1 key reward.
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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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