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Entasis Therapeutics Holdings Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: ETTX ($2.19) is trading below our estimate of fair value ($34.1)

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

Key Valuation Metric

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

Key metric: As ETTX is unprofitable and pre-revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for ETTX. This is calculated by dividing ETTX's market cap by their current book value.
What is ETTX's PB Ratio?
PB Ratio	6.3x
Book	US$16.65m
Market Cap	US$104.80m

ETTX 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/Revenue	n/a
Enterprise Value/EBITDA	-1.6x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does ETTX's PB Ratio compare to its peers?

The above table shows the PB ratio for ETTX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	1.1x
IMAB I-Mab	0.4x	1.8%	US$76.6m
LPTX Leap Therapeutics	2x	6.4%	US$97.7m
IMRX Immuneering	1.1x	-11.3%	US$62.3m
XBIT XBiotech	1.1x	n/a	US$208.2m
ETTX Entasis Therapeutics Holdings	6.3x	52.3%	US$104.8m

Price-To-Book vs Peers: ETTX is expensive based on its Price-To-Book Ratio (6.3x) compared to the peer average (4.6x).

Price to Book Ratio vs Industry

How does ETTX's PB Ratio compare vs other companies in the US Biotechs Industry?

59 Companies	Price / Book	Estimated Growth	Market Cap
GRAL GRAIL	0.2x	35.7%	US$554.58m
IMAB I-Mab	0.4x	1.8%	US$76.59m
ACET Adicet Bio	0.4x	6.7%	US$74.16m
MGX Metagenomi	0.3x	-23.2%	US$70.73m

59 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: ETTX is expensive based on its Price-To-Book Ratio (6.3x) compared to the US Biotechs industry average (1.7x)

Price to Book Ratio vs Fair Ratio

What is ETTX's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ETTX PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	6.3x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate ETTX's Price-To-Book Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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