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    Revolution Medicines (RVMD): Evaluating Valuation After First Patient Randomized in Pivotal RASolute 304 Trial

    Simply Wall St·12/21/2025 01:20:31
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    Revolution Medicines (RVMD) just hit an important clinical milestone, randomizing the first patient in its RASolute 304 Phase 3 trial of daraxonrasib for post-surgery pancreatic cancer patients after chemotherapy.

    See our latest analysis for Revolution Medicines.

    The news lands as the stock trades around $78.78, with a powerful 90 day share price return of 80.94 percent and a three year total shareholder return of 257.44 percent, signaling strong, building momentum around Revolution Medicines late stage pipeline.

    If this kind of clinical progress has your attention, it could be worth scanning other promising healthcare stocks for fresh ideas in the sector.

    But with shares already near analyst targets after a blistering multi year run, is Revolution Medicines still flying under the radar on future RAS assets, or is the market already baking in years of growth?

    Price to Book of 9.5x: Is it justified?

    On a price to book basis, Revolution Medicines looks richly valued at a 9.5x multiple compared to both the broader biotech industry and its own fundamentals.

    The price to book ratio compares a company’s market value to its net assets, a common yardstick for pre revenue or unprofitable biotech names where earnings are not yet meaningful. For Revolution Medicines, with negligible current revenue and ongoing losses, investors are effectively paying a sizable premium to the book value of its RAS focused pipeline and balance sheet.

    Relative to the US Biotechs industry average of about 2.6x price to book, the stock trades at a far higher multiple. This suggests the market is placing significant emphasis on potential future RAS(ON) inhibitor success rather than current financial performance. However, when compared with a narrower peer group, its 9.5x multiple appears more modest relative to the 22.6x peer average, highlighting how concentrated expectations have become in this cutting edge oncology niche.

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

    Result: Price-to-Book of 9.5x (OVERVALUED)

    However, clinical setbacks in its RAS(ON) pipeline or a sharp pullback from current valuation could quickly challenge the bullish, momentum-fueled narrative.

    Find out about the key risks to this Revolution Medicines narrative.

    Build Your Own Revolution Medicines Narrative

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

    A great starting point for your Revolution Medicines research is our analysis highlighting 1 key reward and 2 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.