Sage Therapeutics Valuation

Is SG7 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 SG7 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate SG7's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SG7's fair value for valuation analysis.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for SG7?

Key metric: As SG7 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SG7. This is calculated by dividing SG7's market cap by their current revenue.
What is SG7's PS Ratio?
PS Ratio4x
SalesUS$106.40m
Market CapUS$428.82m

Price to Sales Ratio vs Peers

How does SG7's PS Ratio compare to its peers?

The above table shows the PS ratio for SG7 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average8.5x
FYB Formycon
16x24.6%€958.8m
BIO3 Biotest
1.5x3.6%€1.4b
HPHA Heidelberg Pharma
13.6x16.6%€115.6m
MDG1 Medigene
2.7x15.2%€19.3m
SG7 Sage Therapeutics
4x26.6%€428.8m

Price-To-Sales vs Peers: SG7 is good value based on its Price-To-Sales Ratio (4x) compared to the peer average (8.5x).


Price to Sales Ratio vs Industry

How does SG7's PS Ratio compare vs other companies in the DE Biotechs Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
CNW co.don
0.7xn/aUS$6.97m
V9Z Aceragen
0.4xn/aUS$3.12m
PA8 Paion
0.2x30.2%US$2.78m
V9Z Aceragen
0.3x-161.8%US$2.18m
SG7 4.0xIndustry Avg. 8.3xNo. of Companies5PS0612182430+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SG7 is good value based on its Price-To-Sales Ratio (4x) compared to the European Biotechs industry average (8.4x).


Price to Sales Ratio vs Fair Ratio

What is SG7'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.

SG7 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SG7's Price-To-Sales Fair Ratio for valuation analysis.


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 SG7 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€6.76
€7.94
+17.5%
31.1%€13.44€3.84n/a18
Jan ’26n/a
€8.56
0%
57.2%€24.74€3.81n/a17
Dec ’25n/a
€8.99
0%
53.1%€24.67€3.80n/a17
Nov ’25n/a
€9.36
0%
43.9%€23.94€3.68n/a18
Oct ’25n/a
€13.03
0%
68.8%€47.29€8.18n/a18
Sep ’25n/a
€13.03
0%
68.8%€47.29€8.18n/a18
Aug ’25€9.53
€13.80
+44.9%
64.5%€48.19€7.41n/a19
Jul ’25n/a
€19.02
0%
60.4%€65.38€7.47n/a19
Jun ’25€10.09
€19.43
+92.6%
58.5%€64.45€7.37n/a19
May ’25n/a
€20.73
0%
54.9%€65.47€13.09n/a18
Apr ’25€17.20
€25.32
+47.2%
39.3%€64.63€16.62n/a19
Mar ’25n/a
€25.04
0%
39.8%€64.54€16.60n/a19
Feb ’25n/a
€24.73
0%
48.1%€72.94€18.47n/a19
Jan ’25€20.00
€22.88
+14.4%
51.9%€72.47€16.51n/a19
Dec ’24n/a
€23.60
0%
52.4%€73.77€16.81n/a18
Nov ’24n/a
€24.09
0%
52.3%€75.13€17.12n/a18
Oct ’24n/a
€23.52
0%
52.8%€73.84€16.82n/a18
Sep ’24€17.90
€23.52
+31.4%
52.4%€73.34€16.71n/a18
Aug ’24n/a
€55.03
0%
29.8%€94.65€33.35€9.5319
Jul ’24n/a
€56.05
0%
29.5%€96.98€36.94n/a19
Jun ’24n/a
€55.48
0%
29.5%€97.09€36.99€10.0919
May ’24n/a
€53.17
0%
31.4%€95.29€32.67n/a19
Apr ’24n/a
€53.97
0%
31.5%€97.94€33.58€17.2020
Mar ’24n/a
€52.93
0%
32.9%€98.98€33.94n/a21
Feb ’24n/a
€49.31
0%
36.9%€96.22€30.24n/a21
Jan ’24€34.88
€51.53
+47.7%
37.4%€100.28€31.52€20.0022
Analyst Price Target
Consensus Narrative from 18 Analysts
€7.97
Fair Value
15.2% undervalued intrinsic discount
18
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/23 03:31
End of Day Share Price 2025/01/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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

Sage Therapeutics, Inc. is covered by 40 analysts. 19 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Joel BeattyBaird
Esther Lannie HongBerenberg
Gary NachmanBMO Capital Markets Equity Research