Vanda Pharmaceuticals Inc.

NasdaqGM:VNDA Stock Report

Market Cap: US$285.7m

Vanda Pharmaceuticals Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: VNDA ($4.94) is trading below our estimate of fair value ($30.44)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for VNDA. This is calculated by dividing VNDA's market cap by their current revenue.
What is VNDA's PS Ratio?
PS Ratio1.5x
SalesUS$190.86m
Market CapUS$285.71m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for VNDA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average7.8x
CCCC C4 Therapeutics
8.4x32.4%US$285.9m
FATE Fate Therapeutics
17.5x8.8%US$252.8m
AKBA Akebia Therapeutics
2.3x27.1%US$390.5m
ENTA Enanta Pharmaceuticals
2.7x12.8%US$192.4m
VNDA Vanda Pharmaceuticals
1.5x18.9%US$285.7m

Price-To-Sales vs Peers: VNDA is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (7.8x).


Price to Sales Ratio vs Industry

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

131 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.10.1x21.6%
VNDA Vanda Pharmaceuticals
1.5x18.9%US$285.71m
GILD Gilead Sciences
4x2.4%US$110.46b
BIIB Biogen
2.4x1.3%US$22.73b
VNDA 1.5xIndustry Avg. 10.1xNo. of Companies131PS01632486480+
131 CompaniesEstimated GrowthMarket Cap
Industry Avg.10.1x28.3%
VNDA Vanda Pharmaceuticals
1.5x86.9%US$285.71m
No more companies

Price-To-Sales vs Industry: VNDA is good value based on its Price-To-Sales Ratio (1.5x) compared to the US Biotechs industry average (10.1x).


Price to Sales Ratio vs Fair Ratio

What is VNDA'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.

VNDA PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio4.5x

Price-To-Sales vs Fair Ratio: VNDA is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (4.5x).


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 VNDA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$4.94
US$10.43
+111.1%
51.5%US$18.00US$5.21n/a4
Nov ’25US$4.66
US$10.55
+126.4%
49.9%US$18.00US$5.21n/a4
Oct ’25US$4.54
US$8.07
+77.8%
43.4%US$13.00US$5.21n/a3
Sep ’25US$5.29
US$8.07
+52.6%
43.4%US$13.00US$5.21n/a3
Aug ’25US$5.64
US$8.07
+43.1%
43.4%US$13.00US$5.21n/a3

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.


Discover undervalued companies