Terns Pharmaceuticals, Inc.

NasdaqGS:TERN Stock Report

Market Cap: US$556.3m

Terns Pharmaceuticals Valuation

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

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

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

Key Valuation Metric

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

Key metric: As TERN 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 TERN. This is calculated by dividing TERN's market cap by their current book value.
What is TERN's PB Ratio?
PB Ratio1.4x
BookUS$364.47m
Market CapUS$556.35m

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for TERN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PBEstimated GrowthMarket Cap
Peer Average3.6x
PLRX Pliant Therapeutics
2.2x-0.6%US$782.0m
MIST Milestone Pharmaceuticals
4.7x60.5%US$119.8m
OCS Oculis Holding
5.5x-4.7%US$617.0m
THRD Third Harmonic Bio
1.9x-28.4%US$581.3m
TERN Terns Pharmaceuticals
1.4x-12.5%US$556.3m

Price-To-Book vs Peers: TERN is good value based on its Price-To-Book Ratio (1.4x) compared to the peer average (3.6x).

Price to Book Ratio vs Industry

How does TERN's PB Ratio compare vs other companies in the US Pharmaceuticals Industry?

22 CompaniesPrice / BookEstimated GrowthMarket Cap
SHWZ Medicine Man Technologies
0.2xn/aUS$8.82m
TFFP TFF Pharmaceuticals
0.2x55.9%US$5.55m
UPC Universe Pharmaceuticals
0.1xn/aUS$3.83m
SXTC China SXT Pharmaceuticals
0.1xn/aUS$1.50m
TERN 1.4xIndustry Avg. 1.6xNo. of Companies22PB012345+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Book vs Industry: TERN is good value based on its Price-To-Book Ratio (1.4x) compared to the US Pharmaceuticals industry average (1.6x).

Price to Book Ratio vs Fair Ratio

What is TERN'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.

TERN PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio1.4x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate TERN'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 TERN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$6.17
US$18.19
+194.8%
37.1%US$30.00US$7.50n/a8
Nov ’25US$6.94
US$17.94
+158.5%
39.9%US$30.00US$5.50n/a8
Oct ’25US$8.10
US$18.07
+123.1%
42.3%US$30.00US$5.50n/a7
Sep ’25US$7.62
US$14.21
+86.5%
38.5%US$22.00US$5.50n/a7
Aug ’25US$7.77
US$14.21
+82.9%
38.5%US$22.00US$5.50n/a7
Jul ’25US$6.85
US$14.21
+107.5%
38.5%US$22.00US$5.50n/a7
Jun ’25US$6.01
US$14.21
+136.5%
38.5%US$22.00US$5.50n/a7
May ’25US$5.08
US$14.21
+179.8%
38.5%US$22.00US$5.50n/a7
Apr ’25US$7.10
US$14.21
+100.2%
38.5%US$22.00US$5.50n/a7
Mar ’25US$7.31
US$14.50
+98.4%
38.4%US$22.00US$5.50n/a7
Feb ’25US$5.26
US$14.50
+175.7%
38.4%US$22.00US$5.50n/a7
Jan ’25US$6.49
US$14.29
+120.1%
30.6%US$19.00US$8.00n/a7
Dec ’24US$5.22
US$14.29
+173.7%
30.6%US$19.00US$8.00n/a7
Nov ’24US$5.25
US$15.43
+193.9%
25.2%US$19.00US$8.00US$6.947
Oct ’24US$5.03
US$16.63
+230.5%
29.0%US$25.00US$8.00US$8.108
Sep ’24US$5.37
US$16.44
+206.2%
27.8%US$25.00US$8.00US$7.629
Aug ’24US$7.18
US$16.33
+127.5%
23.1%US$23.00US$10.00US$7.779
Jul ’24US$8.75
US$16.33
+86.7%
23.1%US$23.00US$10.00US$6.859
Jun ’24US$11.30
US$16.14
+42.9%
26.2%US$23.00US$10.00US$6.017
May ’24US$12.93
US$13.80
+6.7%
26.9%US$19.00US$9.00US$5.085
Apr ’24US$11.84
US$13.80
+16.6%
26.9%US$19.00US$9.00US$7.105
Mar ’24US$10.43
US$12.60
+20.8%
41.6%US$19.00US$6.00US$7.315
Feb ’24US$8.94
US$9.00
+0.7%
39.5%US$14.00US$6.00US$5.263
Jan ’24US$10.18
US$9.00
-11.6%
39.5%US$14.00US$6.00US$6.493
Dec ’23US$6.97
US$7.00
+0.4%
20.2%US$9.00US$6.00US$5.223
Nov ’23US$7.44
US$6.67
-10.4%
25.5%US$9.00US$5.00US$5.253

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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