Amylyx Pharmaceuticals (AMLX): Valuation Insights Following Improved Q3 2025 Financial Performance

Amylyx Pharmaceuticals (AMLX) just released its third quarter 2025 earnings, reporting a much smaller net loss compared to this time last year. The financial improvement may be influencing how investors perceive the stock.

See our latest analysis for Amylyx Pharmaceuticals.

After a tough 2023, Amylyx Pharmaceuticals’ share price has staged a sharp rebound, surging 224.55% year-to-date as investors react to improved financials and management’s efforts to control losses. The 1-year total shareholder return sits at 166.60%, showing momentum has decisively shifted in the company’s favor, even after a recent pullback.

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The key question now is whether Amylyx Pharmaceuticals’ rapid recovery signals further upside ahead, or if the recent rally means that all the good news is already reflected in the current share price. Is there still a buying opportunity, or are future gains already factored into the price?

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

Amylyx Pharmaceuticals’ stock is trading at a price-to-book (P/B) ratio of 4.2x, which is well below the peer group average of 7.6x. With shares recently closing at $12.69, this signals that the market is assigning a meaningful discount compared to its closest competitors.

The P/B ratio indicates how much investors are willing to pay for each dollar of company assets and is commonly used for biopharmaceutical names where traditional earnings-based multiples often fall short. This metric can spotlight situations where a stock is priced attractively relative to the company’s net asset value. This is especially important for fast-changing growth businesses.

While Amylyx trades below peer averages, it is trading above the broader industry’s typical valuation of 2.3x. This suggests investors have recalibrated their expectations after the company’s recent rebound. However, since the P/B multiple is still not at the sector’s lowest end, the market may be weighing the company’s past losses and challenging earnings outlook against the potential for turnarounds sparked by management’s strategies.

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

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

However, there are still risks, including persistent net losses and volatile revenue growth. These factors could quickly dampen optimism if performance falters.

Find out about the key risks to this Amylyx Pharmaceuticals narrative.

Build Your Own Amylyx Pharmaceuticals Narrative

If you want to dig deeper into Amylyx Pharmaceuticals’ numbers or form your own viewpoint, it’s easy to build your own story in just a few minutes. Do it your way

A great starting point for your Amylyx Pharmaceuticals research is our analysis highlighting 1 key reward and 4 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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