VSTM Valuation

Verastem Inc

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8.220

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

VSTM Relative Valuation

VSTM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, VSTM is overvalued; if below, it's undervalued.

Historical Valuation

Verastem Inc (VSTM) is now in the Undervalued zone, suggesting that its current forward PS ratio of 9.62 is considered Undervalued compared with the five-year average of -5.26. The fair price of Verastem Inc (VSTM) is between 10.50 to 78.00 according to relative valuation methord. Compared to the current price of 8.22 USD , Verastem Inc is Undervalued By 21.74%.

Relative Value

Fair Zone

10.50-78.00

Current Price：8.22

21.74%

Undervalued

-3.46

Trailing

Forward

0.00

EV/EBITDA

Verastem Inc. (VSTM) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is -0.17. The thresholds are as follows: Strongly Undervalued below -1.33, Undervalued between -1.33 and -0.75, Fairly Valued between 0.42 and -0.75, Overvalued between 0.42 and 1.00, and Strongly Overvalued above 1.00. The current Forward EV/EBITDA of 0.00 falls within the Historic Trend Line -Fairly Valued range.

-2.50

EV/EBIT

Verastem Inc. (VSTM) has a current EV/EBIT of -2.50. The 5-year average EV/EBIT is -2.62. The thresholds are as follows: Strongly Undervalued below -7.56, Undervalued between -7.56 and -5.09, Fairly Valued between -0.15 and -5.09, Overvalued between -0.15 and 2.32, and Strongly Overvalued above 2.32. The current Forward EV/EBIT of -2.50 falls within the Historic Trend Line -Fairly Valued range.

9.62

Verastem Inc. (VSTM) has a current PS of 9.62. The 5-year average PS is 655.87. The thresholds are as follows: Strongly Undervalued below -2903.66, Undervalued between -2903.66 and -1123.90, Fairly Valued between 2435.64 and -1123.90, Overvalued between 2435.64 and 4215.40, and Strongly Overvalued above 4215.40. The current Forward PS of 9.62 falls within the Historic Trend Line -Fairly Valued range.

-3.78

P/OCF

Verastem Inc. (VSTM) has a current P/OCF of -3.78. The 5-year average P/OCF is -5.06. The thresholds are as follows: Strongly Undervalued below -15.41, Undervalued between -15.41 and -10.23, Fairly Valued between 0.12 and -10.23, Overvalued between 0.12 and 5.29, and Strongly Overvalued above 5.29. The current Forward P/OCF of -3.78 falls within the Historic Trend Line -Fairly Valued range.

-3.49

P/FCF

Verastem Inc. (VSTM) has a current P/FCF of -3.49. The 5-year average P/FCF is -3.69. The thresholds are as follows: Strongly Undervalued below -10.70, Undervalued between -10.70 and -7.19, Fairly Valued between -0.18 and -7.19, Overvalued between -0.18 and 3.33, and Strongly Overvalued above 3.33. The current Forward P/FCF of -3.49 falls within the Historic Trend Line -Fairly Valued range.

Verastem Inc (VSTM) has a current Price-to-Book (P/B) ratio of 14.03. Compared to its 3-year average P/B ratio of 4.03 , the current P/B ratio is approximately 248.22% higher. Relative to its 5-year average P/B ratio of 4.02, the current P/B ratio is about 249.11% higher. Verastem Inc (VSTM) has a Forward Free Cash Flow (FCF) yield of approximately -23.77%. Compared to its 3-year average FCF yield of -53.16%, the current FCF yield is approximately -55.29% lower. Relative to its 5-year average FCF yield of -38.14% , the current FCF yield is about -37.69% lower.

14.03

P/B

Median3y

4.03

Median5y

4.02

-23.77

FCF Yield

Median3y

-53.16

Median5y

-38.14

Competitors Valuation Multiple

The average P/S ratio for VSTM's competitors is 5.08, providing a benchmark for relative valuation. Verastem Inc Corp (VSTM) exhibits a P/S ratio of 9.62, which is 89.34% above the industry average. Given its robust revenue growth of -78.63%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Bicycle Therapeutics PLC

Palvella Therapeutics Inc

Loss

523.12M

SLDB.O

Solid Biosciences Inc

Loss

475.78M

Performance Decomposition

Market capitalization of VSTM increased by 228.80% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -82.56 to -1.21K.

The secondary factor is the Revenue Growth, contributed -78.63%to the performance.

Overall, the performance of VSTM in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-78.63%

10.00M → 2.14M

Revenue Growth

1369.92%

-82.56 → -1.21K

Margin Expansion

-1062.49%

0.24 → -2.33

P/E Change

228.80%