AnaptysBio (ANAB): Assessing an 8x Price-to-Sales Valuation After a Strong Share Price Run-Up

AnaptysBio (ANAB) has quietly turned into a strong momentum story, with the stock up about 3% on the day, roughly 9% over the past week, and more than 30% this month.

See our latest analysis for AnaptysBio.

Zooming out, that sharp 1 day and 30 day share price momentum sits on top of a powerful year to date share price return, while the 1 year total shareholder return shows that optimism has been building for some time.

If AnaptysBio's surge has you rethinking your exposure to biotech, it could be a good moment to explore other healthcare stocks that are quietly building similar momentum.

With shares up more than 160 percent over the past year yet still trading at a sizable discount to analyst targets, investors now face a key question: Is AnaptysBio a genuine buying opportunity, or is the market already pricing in its future growth?

Price-to-Sales of 8x: Is it justified?

Based on its current price to sales ratio of 8 times and a last close of $49.08, AnaptysBio screens as expensive versus its own fundamentals but cheaper than many biotech peers.

The price to sales multiple compares the company’s market value to its annual revenue, a common yardstick for unprofitable or early stage biotech names where earnings are still negative.

For AnaptysBio, the market is paying a rich premium to its estimated fair price to sales ratio of about 2.4 times, a level our models suggest would better match its current revenue base and loss making profile. Yet, that same 8 times multiple looks more moderate when stacked against the broader US biotech industry at roughly 11.8 times, and even below a peer group average of about 10.4 times, which implies investors are still assigning a relative discount compared to comparable drug developers.

Explore the SWS fair ratio for AnaptysBio

Result: Price-to-Sales of 8x (OVERVALUED).

However, setbacks in late stage trials or slower than expected uptake for lead candidates could quickly undermine the lofty expectations embedded in AnaptysBio's share price.

Find out about the key risks to this AnaptysBio narrative.

Build Your Own AnaptysBio Narrative

If you see the story differently, or want to dig into the numbers yourself, you can build a personalised take in minutes with Do it your way.

A great starting point for your AnaptysBio 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.

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