Aroa Biosurgery Limited

ASX:ARX Stock Report

Market Cap: AU$217.3m

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$0.63) is trading below our estimate of fair value (A$7.53)

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$69.07m
Market CapNZ$239.48m

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 Average47.3x
OCC Orthocell
28.3xn/aAU$150.6m
PYC PYC Therapeutics
37.9x15.6%AU$863.2m
IMU Imugene
61.4x58.2%AU$304.9m
RAC Race Oncology
61.7x34.8%AU$247.2m
ARX Aroa Biosurgery
3.5x20.1%AU$217.3m

Price-To-Sales vs Peers: ARX is good value based on its Price-To-Sales Ratio (3.5x) compared to the peer average (47.6x).

Price to Sales Ratio vs Industry

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

8 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.9.7x8.3%
ARX Aroa Biosurgery
 3.5x20.1%US$140.28m
IMC Immuron
3.7x59.7%US$11.69m
ATH Alterity Therapeutics
4x25.0%US$10.30m
ARX 3.5xIndustry Avg. 9.7xNo. of Companies8PS01632486480+
8 CompaniesEstimated GrowthMarket Cap
Industry Avg.9.7x15.3%
ARX Aroa Biosurgery
 3.5x56.3%US$140.28m
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 (9.9x).

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 Ratio4.6x

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 (4.6x).

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$0.65
AU$0.93
+43.0%
12.8%AU$1.05AU$0.71n/a5
Nov ’25AU$0.60
AU$0.93
+54.9%
12.8%AU$1.05AU$0.71n/a5
Oct ’25AU$0.55
AU$0.93
+69.7%
13.6%AU$1.07AU$0.71n/a5
Sep ’25AU$0.55
AU$0.94
+72.8%
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
+62.3%
4.9%AU$1.05AU$0.90n/a5
Jun ’25AU$0.57
AU$1.00
+74.6%
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$1.16n/a5
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
Nov ’23AU$0.86
AU$1.26
+46.2%
32.5%AU$1.51AU$0.44AU$0.785

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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