Galapagos Valuation

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

Below Fair Value: Insufficient data to calculate GLPG's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate GLPG's fair value for valuation analysis.


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for GLPG. This is calculated by dividing GLPG's market cap by their current revenue.
What is GLPG's PS Ratio?
PS Ratio6.6x
Sales€260.09m
Market Cap€1.72b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for GLPG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average10.3x
DVAX Dynavax Technologies
6.5x17.6%US$1.7b
XNCR Xencor
21.1x29.2%US$1.8b
RCUS Arcus Biosciences
5.5x18.5%US$1.4b
TVTX Travere Therapeutics
8x31.7%US$1.6b
GLPG Galapagos
6.6x3.9%US$1.7b

Price-To-Sales vs Peers: GLPG is good value based on its Price-To-Sales Ratio (6.6x) compared to the peer average (10.3x).


Price to Sales Ratio vs Industry

How does GLPG's PS Ratio compare vs other companies in the US Biotechs Industry?

124 CompaniesPrice / SalesEstimated GrowthMarket Cap
BIIB Biogen
2.4x1.3%US$23.29b
MRNA Moderna
3.3x6.7%US$16.70b
INCY Incyte
3.6x9.0%US$14.54b
ALKS Alkermes
3.2x-0.7%US$4.74b
GLPG 6.6xIndustry Avg. 10.0xNo. of Companies124PS01632486480+
124 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: GLPG is good value based on its Price-To-Sales Ratio (6.6x) compared to the US Biotechs industry average (10x).


Price to Sales Ratio vs Fair Ratio

What is GLPG'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.

GLPG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.6x
Fair PS Ratio1.6x

Price-To-Sales vs Fair Ratio: GLPG is expensive based on its Price-To-Sales Ratio (6.6x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).


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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