Sol-Gel Technologies Ltd.

DB:4SG Stock Report

Market Cap: €11.7m

Sol-Gel Technologies Valuation

Is 4SG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 4SG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4SG (€0.35) is trading above our estimate of fair value (€0.12)

Significantly Below Fair Value: 4SG is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4SG?

Key metric: As 4SG is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 4SG. This is calculated by dividing 4SG's market cap by their current revenue.
What is 4SG's PS Ratio?
PS Ratio1.1x
SalesUS$11.71m
Market CapUS$12.29m

Price to Sales Ratio vs Peers

How does 4SG's PS Ratio compare to its peers?

The above table shows the PS ratio for 4SG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average9.6x
B8FK Biofrontera
0.8xn/a€16.7m
SBX SynBiotic
7.2x39.7%€27.9m
HIGH Cantourage Group
28.2x38.6%€54.9m
APPH Apontis Pharma
2x17.3%€81.3m
4SG Sol-Gel Technologies
1.1x27.7%€12.3m

Price-To-Sales vs Peers: 4SG is good value based on its Price-To-Sales Ratio (1.1x) compared to the peer average (9.6x).

Price to Sales Ratio vs Industry

How does 4SG's PS Ratio compare vs other companies in the European Pharmaceuticals Industry?

24 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.3.1x3.4%
4SG Sol-Gel Technologies
 1.1x27.7%US$12.29m
4SG 1.1xIndustry Avg. 3.1xNo. of Companies33PS0612182430+
24 CompaniesEstimated GrowthMarket Cap
Industry Avg.3.1x21.5%
4SG Sol-Gel Technologies
 1.1x26.7%US$12.29m
No more companies

Price-To-Sales vs Industry: 4SG is good value based on its Price-To-Sales Ratio (1.1x) compared to the European Pharmaceuticals industry average (3.1x).

Price to Sales Ratio vs Fair Ratio

What is 4SG'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.

4SG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.1x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: 4SG is good value based on its Price-To-Sales Ratio (1.1x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

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 4SG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.35
€4.75
+1,241.7%
20.0%€5.70€3.80n/a2
Nov ’25€0.40
€4.51
+1,022.0%
20.0%€5.41€3.61n/a2
Oct ’25€0.56
€4.51
+698.3%
20.0%€5.41€3.61n/a2
Sep ’25€0.56
€4.51
+698.3%
20.0%€5.41€3.61n/a2
May ’25€0.78
€7.31
+837.0%
12.5%€8.22€6.40n/a2
Apr ’25€0.86
€7.31
+744.9%
12.5%€8.22€6.40n/a2
Mar ’25€0.98
€7.48
+658.9%
12.5%€8.41€6.54n/a2
Feb ’25€1.24
€7.48
+502.8%
12.5%€8.41€6.54n/a2
Jan ’25€1.08
€7.48
+592.1%
12.5%€8.41€6.54n/a2
Dec ’24€1.14
€7.48
+555.7%
12.5%€8.41€6.54n/a2
Nov ’24€1.17
€9.62
+722.6%
14.3%€11.00€8.25€0.402
Oct ’24€1.52
€9.62
+533.2%
14.3%€11.00€8.25€0.562
Sep ’24€2.30
€9.62
+318.4%
14.3%€11.00€8.25€0.562
Aug ’24€3.24
€12.66
+290.6%
35.7%€17.18€8.14€0.352
Jul ’24€2.78
€13.54
+386.9%
31.0%€17.74€9.34€0.782
Jun ’24€3.22
€13.49
+318.8%
31.0%€17.67€9.30€0.622
May ’24€3.10
€10.72
+245.7%
48.8%€17.71€5.13€0.783
Apr ’24€3.54
€10.72
+202.8%
48.8%€17.71€5.13€0.863
Mar ’24€3.92
€12.09
+208.5%
44.2%€18.38€5.32€0.983
Feb ’24€4.30
€12.09
+181.3%
44.2%€18.38€5.32€1.243
Jan ’24€3.84
€12.09
+214.9%
44.2%€18.38€5.32€1.083
Dec ’23€4.32
€12.09
+179.9%
44.2%€18.38€5.32€1.143
Nov ’23€4.78
€14.70
+207.6%
47.0%€22.31€5.58€1.173

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

Discover undervalued companies

Regeneron Pharmaceuticals

US$80.0b

Regeneron Pharmaceuticals, Inc. discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide.

RGO

US$705.00

7D

-7.1%

1Y

-3.8%

Amneal Pharmaceuticals

US$2.6b

Develops, manufactures, markets, and distributes generics, injectables, biosimilars, and specialty branded pharmaceutical products worldwide.

2DT

US$7.60

7D

-6.2%

1Y

90.0%

Collegium Pharmaceutical

US$967.5m

A specialty pharmaceutical company, engages in the development and commercialization of medicines for pain management.

354

US$28.60

7D

0.7%

1Y

20.2%