We’ve recently updated our valuation analysis.

Castle Biosciences Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CSTL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.8x
Enterprise Value/EBITDA-6.2x
PEG Ration/a

Price to Sales Ratio vs Peers

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

CSTL PS Ratio vs Peers
The above table shows the PS ratio for CSTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.8x
NVTA Invitae
1.2x9.7%US$578.8m
INNV InnovAge Holding
1.1x13.2%US$797.1m
CCRN Cross Country Healthcare
0.4x-14.4%US$1.1b
EHAB Enhabit
0.6x7.0%US$696.6m
CSTL Castle Biosciences
6.2x21.7%US$685.8m

Price-To-Sales vs Peers: CSTL is expensive based on its Price-To-Sales Ratio (6.2x) compared to the peer average (0.8x).


Price to Earnings Ratio vs Industry

How does CSTL's PE Ratio compare vs other companies in the US Healthcare Industry?

Price-To-Sales vs Industry: CSTL is expensive based on its Price-To-Sales Ratio (6.2x) compared to the US Healthcare industry average (1.3x)


Price to Sales Ratio vs Fair Ratio

What is CSTL'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.

CSTL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.2x
Fair PS Ratio8.5x

Price-To-Sales vs Fair Ratio: CSTL is good value based on its Price-To-Sales Ratio (6.2x) compared to the estimated Fair Price-To-Sales Ratio (8.5x).


Share Price vs Fair Value

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

Below Fair Value: CSTL ($26.08) is trading below our estimate of fair value ($233.99)

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


Analyst Price Targets

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

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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