Aroa Biosurgery Limited

ASX:ARX Stock Report

Market Cap: AU$232.8m

Aroa Biosurgery Valuation

Is ARX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ARX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ARX (A$0.7) is trading below our estimate of fair value (A$7.47)

Significantly Below Fair Value: ARX is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARX?

Key metric: As ARX is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ARX. This is calculated by dividing ARX's market cap by their current revenue.
What is ARX's PS Ratio?
PS Ratio3.5x
SalesNZ$76.35m
Market CapNZ$256.07m

Price to Sales Ratio vs Peers

How does ARX's PS Ratio compare to its peers?

The above table shows the PS ratio for ARX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average43.9x
IMU Imugene
53.9x58.2%AU$282.6m
OCC Orthocell
56.3xn/aAU$300.3m
CUV Clinuvel Pharmaceuticals
6.8x21.4%AU$599.4m
RAC Race Oncology
58.5x34.8%AU$234.4m
ARX Aroa Biosurgery
3.5x21.3%AU$232.8m

Price-To-Sales vs Peers: ARX is good value based on its Price-To-Sales Ratio (3.5x) compared to the peer average (43.9x).

Price to Sales Ratio vs Industry

How does ARX's PS Ratio compare vs other companies in the AU Biotechs Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.10.0x8.5%
ARX Aroa Biosurgery
 3.5x21.3%US$144.96m
IMC Immuron
3.6x59.7%US$11.56m
BNO Bionomics
2.4x-5.3%US$9.52m
ARX 3.5xIndustry Avg. 10.0xNo. of Companies9PS01632486480+
7 CompaniesEstimated GrowthMarket Cap
Industry Avg.10.0x15.4%
ARX Aroa Biosurgery
 3.5x59.7%US$144.96m
No more companies

Price-To-Sales vs Industry: ARX is good value based on its Price-To-Sales Ratio (3.5x) compared to the Australian Biotechs industry average (10x).

Price to Sales Ratio vs Fair Ratio

What is ARX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ARX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.5x
Fair PS Ratio4.9x

Price-To-Sales vs Fair Ratio: ARX is good value based on its Price-To-Sales Ratio (3.5x) compared to the estimated Fair Price-To-Sales Ratio (4.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ARX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$0.69
AU$0.95
+36.2%
11.4%AU$1.06AU$0.75n/a5
Dec ’25AU$0.70
AU$0.95
+34.3%
11.4%AU$1.06AU$0.75n/a5
Nov ’25AU$0.60
AU$0.93
+55.0%
12.8%AU$1.05AU$0.71n/a5
Oct ’25AU$0.55
AU$0.93
+69.8%
13.6%AU$1.07AU$0.71n/a5
Sep ’25AU$0.55
AU$0.94
+72.9%
13.3%AU$1.08AU$0.72n/a5
Aug ’25AU$0.63
AU$0.98
+55.2%
5.7%AU$1.05AU$0.88n/a5
Jul ’25AU$0.61
AU$0.99
+62.4%
4.9%AU$1.05AU$0.90n/a5
Jun ’25AU$0.57
AU$0.99
+74.5%
4.7%AU$1.05AU$0.91n/a5
May ’25AU$0.50
AU$1.01
+101.5%
10.5%AU$1.20AU$0.88n/a5
Apr ’25AU$0.56
AU$1.02
+82.9%
10.1%AU$1.20AU$0.89n/a5
Mar ’25AU$0.57
AU$1.02
+79.5%
9.6%AU$1.20AU$0.90n/a5
Feb ’25AU$0.57
AU$1.02
+79.5%
9.6%AU$1.20AU$0.90n/a5
Jan ’25AU$0.83
AU$1.35
+62.2%
13.4%AU$1.60AU$1.17n/a5
Dec ’24AU$0.70
AU$1.34
+91.2%
13.6%AU$1.60AU$1.16AU$0.705
Nov ’24AU$0.78
AU$1.47
+88.8%
9.3%AU$1.69AU$1.26AU$0.605
Oct ’24AU$0.79
AU$1.50
+90.8%
7.6%AU$1.69AU$1.34AU$0.555
Sep ’24AU$0.85
AU$1.50
+76.2%
7.6%AU$1.69AU$1.34AU$0.555
Aug ’24AU$0.91
AU$1.50
+64.5%
7.6%AU$1.69AU$1.34AU$0.635
Jul ’24AU$0.93
AU$1.50
+62.4%
7.4%AU$1.69AU$1.35AU$0.615
Jun ’24AU$0.92
AU$1.50
+63.8%
8.3%AU$1.72AU$1.33AU$0.575
May ’24AU$1.08
AU$1.55
+43.5%
6.9%AU$1.74AU$1.45AU$0.505
Apr ’24AU$1.05
AU$1.53
+46.1%
7.7%AU$1.72AU$1.38AU$0.565
Mar ’24AU$1.10
AU$1.51
+37.4%
7.0%AU$1.68AU$1.38AU$0.575
Feb ’24AU$1.18
AU$1.50
+27.2%
7.8%AU$1.69AU$1.38AU$0.574
Jan ’24AU$1.08
AU$1.51
+39.8%
9.1%AU$1.73AU$1.38AU$0.834
Dec ’23AU$1.10
AU$1.30
+18.6%
33.6%AU$1.73AU$0.46AU$0.705

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 08:29
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Aroa Biosurgery Limited is covered by 10 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Russell WrightBarclay Pearce Capital Pty Limited
John HesterBell Potter
Elyse ShapiroBell Potter