Sarepta Therapeutics (SRPT): Assessing Valuation After Q3 Earnings Reveal Swing to Net Loss

Sarepta Therapeutics (SRPT) released its third-quarter 2025 results, showing revenue fell from last year and the company swung from profit to a significant net loss. This material update is front and center for investors.

See our latest analysis for Sarepta Therapeutics.

Sarepta’s Q3 earnings miss and return to a sizable net loss have weighed heavily on sentiment, but the share price has rebounded nearly 46% over the past 90 days after a steep decline earlier in the year. Despite this recent momentum, the 1-year total shareholder return stands at -80%, highlighting just how challenging the past year has been for longer-term investors.

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With shares bouncing strongly from recent lows despite steep year-over-year declines in revenue and profits, the question for investors now is clear: is Sarepta undervalued after its losses, or is future growth already reflected in the price?

Most Popular Narrative: 6.9% Overvalued

With Sarepta’s last close at $24.45 and the most widely followed narrative fair value at $22.88, the narrative suggests the market may be slightly ahead of fundamental expectations. This sets the stage for a deeper look at the assumptions driving the consensus view.

The analysts have a consensus price target of $23.96 for Sarepta Therapeutics based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $80.0, and the most bearish reporting a price target of just $5.0.

Read the complete narrative.

Curious about which big shifts in Sarepta's financials are fueling analyst optimism, and why the path to future earnings could be so contentious? The fair value here rides on bold profit margin forecasts and a profit multiple that puts Sarepta in rare company. Want to uncover the underlying assumptions and surprising numbers behind this target? Dive in and see what drives this valuation story.

Result: Fair Value of $22.88 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, new safety concerns and ongoing administrative complexities could derail Sarepta’s recovery and act as powerful catalysts for a reversal in market sentiment.

Find out about the key risks to this Sarepta Therapeutics narrative.

Another View: Deep Discount by Fair Value Model

While the narrative’s price target suggests Sarepta might be overvalued, our SWS DCF model tells a different story. It estimates Sarepta’s fair value at $47.15, nearly double its current share price. This indicates the stock could be trading at a sizable discount. Could this large gap signal a rare value opportunity, or are DCF assumptions too optimistic about Sarepta’s future?

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

Build Your Own Sarepta Therapeutics Narrative

If you’re not convinced by these views or want to dig into the numbers yourself, you can craft your own take on Sarepta’s story in just minutes with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Sarepta Therapeutics.

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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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