A Look at Liquidia's (LQDA) Valuation After Strong Q2 Earnings and YUTREPIA Launch

Liquidia (LQDA) is attracting attention after reporting strong Q2 2025 earnings, supported by the initial launch of YUTREPIA and expanded market access through contracts with leading commercial payers. Investors are eyeing potential growth as patient demand builds in Q3.

See our latest analysis for Liquidia.

After a stellar run in recent quarters, Liquidia’s share price has more than doubled so far in 2025, notching a year-to-date share price return of 91.57%. As momentum builds off the YUTREPIA launch and improved market access, investors are clearly responding, as reflected in a 102.27% one-year total shareholder return and an impressive 355% return over three years.

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With analyst price targets suggesting further upside and shares already soaring throughout 2025, investors now face a crucial question: is there still value left to unlock, or has the market already factored in all the growth ahead?

Price-to-Book Ratio of 131.4x: Is it justified?

Liquidia's current price-to-book ratio of 131.4x stands in stark contrast to its last close of $23.18, highlighting aggressive market optimism compared to sector standards.

The price-to-book ratio compares a company's market value to its book value and offers insight into how much investors are paying for net assets. In biotech and pharmaceutical sectors, high ratios may reflect faith in future growth, breakthrough products, or pipeline potential. However, they can also signal overheated expectations.

Liquidia's price-to-book ratio is much higher than the peer average of 3.9x and also exceeds the US Pharmaceuticals industry average of 2.4x. This suggests the market is anticipating significant breakthroughs or transformative growth that justifies the steep premium, but it also means the shares are expensive on typical asset-based measures.

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

Result: Price-to-Book Ratio of 131.4x (OVERVALUED)

However, sudden regulatory challenges or slower than expected uptake of YUTREPIA could quickly dampen investor enthusiasm and alter the growth outlook.

Find out about the key risks to this Liquidia narrative.

Another View: Discounted Cash Flow Upside?

While the price-to-book ratio paints a picture of steep overvaluation, our DCF model tells a different story. It estimates Liquidia's fair value at $135.81 per share, well above the current price of $23.18. This suggests the stock may be trading at a substantial discount. Does the underlying growth potential justify taking a closer look, or is optimism masking real risks?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Liquidia for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Liquidia Narrative

If you have different views or want to dig into the numbers yourself, you can quickly craft your own take using our easy tools such as Do it your way.

A great starting point for your Liquidia research is our analysis highlighting 2 key rewards and 1 important warning sign 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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