A Look at Viridian Therapeutics’s Valuation Following Completion of Pivotal Phase III Trial Enrollment for VRDN-003

Viridian Therapeutics (VRDN) just hit a key milestone that is hard for investors to ignore. The company announced it has completed patient enrollment for its pivotal Phase III REVEAL-1 and REVEAL-2 trials of VRDN-003 for active and chronic thyroid eye disease. This marks a crucial step forward in bringing a new therapy closer to approval, with topline results expected in 2026 and the possibility of a Biologics License Application by year’s end. Looking at the bigger picture, this development comes at an interesting time for Viridian. The stock has surged over 32% in the past three months, hinting at renewed optimism following a tougher stretch. Shares are still down 13% over the past year. Recent financial results showed both revenue and net income on the rise, while management continues to highlight the long-term potential of VRDN-003 to stand out in the multi-billion-dollar thyroid eye disease market. After this rapid bounce, the big question is whether Viridian shares are attractively valued with the recent news in hand or if the market is already factoring in next year’s growth story.

Price-to-Book of 4.9x: Is it justified?

Viridian Therapeutics trades at a price-to-book (P/B) ratio of 4.9 times, which makes it more expensive than both the US Biotechs industry average of 2.2 times and its peer average of 3 times.

The price-to-book ratio compares a company’s market value to its net assets and is widely used for valuing biotech firms, which often have unpredictable earnings but significant investment in assets like intellectual property and R&D. In this sector, a high P/B can signal that investors expect strong future growth or believe the company's assets are undervalued by accounting standards.

Given that Viridian’s P/B sits well above the benchmark, the market appears to be pricing in robust future potential, possibly driven by high forecasted revenue growth. Still, with current unprofitability and rising losses, this premium valuation may be hard to justify just yet.

Result: Fair Value of $19.43 (OVERVALUED)

See our latest analysis for Viridian Therapeutics.

However, rapid revenue growth can mask operational losses, and any setbacks in VRDN-003 trials could quickly dampen investor enthusiasm.

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

Another View: What Does the DCF Model Say?

Taking a step back from asset-based measures, our DCF model tells a completely different story. It suggests Viridian is dramatically undervalued and potentially challenges the idea that the current share price is too high. Which lens truly captures the opportunity here?

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

Stay updated when valuation signals shift by adding Viridian Therapeutics to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Viridian Therapeutics Narrative

If you see things differently or want to dig into the numbers yourself, it's quick and easy to put together your own narrative in just a few minutes. Do it your way

A great starting point for your Viridian Therapeutics research is our analysis highlighting 2 key rewards and 2 important warning signs 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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