Pharming Group N.V.

DB:PHGN Stock Report

Market Cap: €498.9m

Pharming Group Valuation

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

Below Fair Value: PHGN (€0.71) is trading below our estimate of fair value (€7.9)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for PHGN. This is calculated by dividing PHGN's market cap by their current revenue.
What is PHGN's PS Ratio?
PS Ratio1.8x
SalesUS$285.75m
Market CapUS$524.53m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for PHGN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average9.5x
FYB Formycon
13.6x32.5%€826.3m
BIO3 Biotest
1.3x-4.1%€1.3b
HPHA Heidelberg Pharma
12.9x16.6%€109.1m
MOR MorphoSys
10.2xn/a€2.6b
PHGN Pharming Group
1.8x9.7%€498.9m

Price-To-Sales vs Peers: PHGN is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (9.5x).

Price to Sales Ratio vs Industry

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

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
BIO3 Biotest
1.3x-4.1%US$1.42b
CNW co.don
0.7xn/aUS$6.97m
V9Z Aceragen
0.4xn/aUS$3.12m
PA8 Paion
0.2x30.2%US$2.78m
PHGN 1.8xIndustry Avg. 7.9xNo. of Companies7PS0612182430+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: PHGN is good value based on its Price-To-Sales Ratio (1.8x) compared to the European Biotechs industry average (8.1x).

Price to Sales Ratio vs Fair Ratio

What is PHGN'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.

PHGN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ratio2.4x

Price-To-Sales vs Fair Ratio: PHGN is good value based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (2.4x).

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 PHGN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.71
€1.80
+153.7%
12.0%€2.10€1.60n/a3
Nov ’25€0.76
€1.82
+138.7%
11.1%€2.10€1.65n/a3
Oct ’25€0.74
€1.78
+140.2%
12.6%€2.10€1.60n/a3
Sep ’25€0.70
€1.78
+153.7%
12.6%€2.10€1.60n/a3
Aug ’25€0.75
€1.88
+150.8%
12.0%€2.10€1.65n/a2
Jul ’25€0.74
€1.88
+151.7%
12.0%€2.10€1.65n/a2
Jun ’25€0.76
€1.93
+153.9%
10.4%€2.10€1.65n/a3
May ’25€0.90
€2.00
+123.2%
5.4%€2.10€1.85n/a3
Apr ’25€1.00
€2.00
+100.2%
5.4%€2.10€1.85n/a3
Mar ’25€1.02
€1.80
+76.1%
9.0%€2.05€1.60n/a4
Feb ’25€1.15
€1.89
+63.7%
10.7%€2.10€1.60n/a4
Jan ’25€1.04
€1.85
+78.6%
9.2%€2.05€1.60n/a4
Dec ’24€1.06
€1.85
+75.2%
9.2%€2.05€1.60n/a4
Nov ’24€1.11
€1.84
+64.9%
8.9%€2.05€1.60€0.764
Oct ’24€1.21
€1.86
+54.2%
8.8%€2.05€1.60€0.744
Sep ’24€1.17
€1.86
+59.9%
8.8%€2.05€1.60€0.704
Aug ’24€1.13
€1.81
+60.1%
11.1%€2.05€1.50€0.754
Jul ’24€1.07
€1.92
+78.6%
5.4%€2.05€1.80€0.743
Jun ’24€1.14
€1.95
+71.7%
5.5%€2.05€1.80€0.763
May ’24€1.01
€1.95
+93.8%
5.5%€2.05€1.80€0.903
Apr ’24€1.22
€1.95
+60.4%
5.5%€2.05€1.80€1.003
Mar ’24€1.14
€1.78
+56.3%
6.7%€1.90€1.66€1.022
Feb ’24€1.25
€1.78
+42.6%
6.7%€1.90€1.66€1.152
Jan ’24€1.09
€1.78
+62.7%
6.7%€1.90€1.66€1.042
Dec ’23€1.22
€1.78
+46.1%
6.7%€1.90€1.66€1.062
Nov ’23€1.07
€1.78
+66.4%
6.7%€1.90€1.66€1.112

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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