Praxis Precision Medicines, Inc.

NasdaqGS:PRAX Stock Report

Market Cap: US$1.4b

Praxis Precision Medicines Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 PRAX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PRAX ($71.76) is trading below our estimate of fair value ($769.49)

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

Key Valuation Metric

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

Key metric: As PRAX barely has revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for PRAX. This is calculated by dividing PRAX's market cap by their current book value.
What is PRAX's PB Ratio?
PB Ratio3.5x
BookUS$382.67m
Market CapUS$1.43b

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for PRAX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average6.5x
ARDX Ardelyx
7.4x69.6%US$1.1b
MIRM Mirum Pharmaceuticals
9.2x71.2%US$2.2b
IGMS IGM Biosciences
7.1x2.8%US$600.6m
BEAM Beam Therapeutics
2.4x-11.9%US$2.1b
PRAX Praxis Precision Medicines
3.5x9.9%US$1.4b

Price-To-Book vs Peers: PRAX is good value based on its Price-To-Book Ratio (3.5x) compared to the peer average (6.5x).

Price to Book Ratio vs Industry

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

63 CompaniesPrice / BookEstimated GrowthMarket Cap
GRAL GRAIL
0.2xn/aUS$531.23m
AMRN Amarin
0.4x-7.7%US$213.90m
IMAB I-Mab
0.4x1.9%US$87.14m
ACET Adicet Bio
0.4x6.7%US$86.52m
PRAX 3.5xIndustry Avg. 1.8xNo. of Companies74PB01.63.24.86.48+
63 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: PRAX is expensive based on its Price-To-Book Ratio (3.5x) compared to the US Biotechs industry average (1.8x).

Price to Book Ratio vs Fair Ratio

What is PRAX'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.

PRAX PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio3.5x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate PRAX'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?

The above table shows the analyst PRAX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$71.76
US$145.60
+102.9%
35.5%US$270.00US$57.00n/a10
Nov ’25US$68.33
US$148.67
+117.6%
36.7%US$270.00US$51.00n/a9
Oct ’25US$57.43
US$146.44
+155.0%
37.1%US$270.00US$51.00n/a9
Sep ’25US$53.15
US$143.89
+170.7%
38.2%US$270.00US$48.00n/a9
Aug ’25US$56.95
US$140.38
+146.5%
42.9%US$270.00US$40.00n/a8
Jul ’25US$41.19
US$140.38
+240.8%
42.9%US$270.00US$40.00n/a8
Jun ’25US$47.46
US$137.17
+189.0%
50.4%US$270.00US$40.00n/a6
May ’25US$55.16
US$135.00
+144.7%
51.3%US$270.00US$40.00n/a6
Apr ’25US$58.60
US$138.80
+136.9%
54.1%US$270.00US$41.00n/a5
Mar ’25US$49.54
US$125.80
+153.9%
65.3%US$270.00US$29.00n/a5
Feb ’25US$43.73
US$122.80
+180.8%
68.6%US$270.00US$29.00n/a5
Jan ’25US$22.28
US$120.20
+439.5%
72.6%US$270.00US$16.00n/a5
Dec ’24US$17.56
US$120.20
+584.5%
72.6%US$270.00US$16.00n/a5
Nov ’24US$14.37
US$123.00
+755.8%
68.3%US$270.00US$30.00US$68.335
Oct ’24US$25.65
US$123.00
+379.5%
68.3%US$270.00US$30.00US$57.435
Sep ’24US$23.55
US$116.25
+393.6%
79.7%US$270.00US$30.00US$53.154
Aug ’24US$14.37
US$146.25
+918.0%
70.5%US$270.00US$30.00US$56.954
Jul ’24US$17.25
US$146.25
+747.8%
70.5%US$270.00US$30.00US$41.194
Jun ’24US$13.16
US$175.00
+1,230.1%
59.5%US$270.00US$30.00US$47.463
May ’24US$16.80
US$180.00
+971.4%
59.3%US$270.00US$30.00US$55.163
Apr ’24US$12.13
US$151.65
+1,149.7%
69.3%US$270.00US$22.50US$58.605
Mar ’24US$45.45
US$163.65
+260.1%
55.7%US$270.00US$45.00US$49.545
Feb ’24US$73.35
US$148.56
+102.5%
57.0%US$270.00US$45.00US$43.735
Jan ’24US$35.70
US$147.69
+313.7%
56.9%US$270.00US$45.00US$22.285
Dec ’23US$32.70
US$147.69
+351.7%
56.9%US$270.00US$45.00US$17.565
Nov ’23US$30.45
US$166.44
+446.6%
57.7%US$284.70US$60.00US$14.375

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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