Assessing Akero Therapeutics (AKRO) Valuation After a 28% Share Price Surge This Month

Akero Therapeutics (AKRO) stock has caught the attention of investors after a recent upward move of 28% over the past month. The company has seen notable momentum lately, and this has prompted some to take a closer look at its performance.

See our latest analysis for Akero Therapeutics.

That strong 1-month share price return of 27.6% has put Akero Therapeutics back in the spotlight, especially after a year where the stock has surged 91.7% year-to-date and delivered a 72.4% total shareholder return for investors over the last twelve months. Momentum is clearly building, highlighting renewed optimism around Akero’s growth potential even as the sector remains competitive.

If Akero’s rise has you curious, this is a great moment to see what other innovative healthcare stocks are capturing attention. See the full list for free.

With Akero’s impressive run-up, the key question becomes whether the recent gains are justified by fundamentals or if all the optimism is already reflected in the price. Is this a genuine buying opportunity, or has the market already accounted for the company’s future growth?

Price-to-Book Ratio of 4.2x: Is it justified?

Akero Therapeutics is currently trading at a price-to-book ratio of 4.2x, positioning it as more expensive than many of its U.S. biotech peers. The last close price was $53.84, which sits above the industry average in this context.

The price-to-book ratio compares a company’s market value to its book value, helping investors gauge whether a stock is overvalued or undervalued relative to the tangible assets the business holds. For biotechs, where many companies remain pre-revenue and unprofitable, this metric is often used as a valuation yardstick.

Akero’s 4.2x ratio suggests the market is pricing in significant growth or future potential, despite the company lacking meaningful current revenue and remaining unprofitable. While this is notably higher than the U.S. biotech industry average of 2.5x, it is actually lower than the peer group’s average of 8.4x, signaling a relative bargain among its closest competitors. However, the absence of a fair value estimate from advanced regression modeling leaves some valuation questions unanswered.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book Ratio of 4.2x (ABOUT RIGHT)

However, Akero’s lack of meaningful revenue and its ongoing unprofitability remain important risks that could challenge the current positive momentum.

Find out about the key risks to this Akero Therapeutics narrative.

Build Your Own Akero Therapeutics Narrative

If you see Akero’s story differently, or want to dig into the details yourself, you can easily put together your own analysis in just a few minutes. Do it your way

A great starting point for your Akero Therapeutics research is our analysis highlighting 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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