Reassessing Viridian Therapeutics (VRDN) Valuation Following Insider Buying and Progress in Thyroid Eye Disease Program

Viridian Therapeutics (VRDN) is getting attention after Fairmount Funds Management made a $10 million insider purchase, which underscores increased confidence in the company. Recent progress in VRDN-003’s clinical trials for Thyroid Eye Disease also adds to investor optimism.

See our latest analysis for Viridian Therapeutics.

Shares of Viridian Therapeutics are catching a wave of momentum, with an 11.1% share price return over the past month and a standout 35.7% gain in the last 90 days. This trend is likely energized by strong clinical updates and insider buying. Over the past year, however, total shareholder return sits at just 6.1%, highlighting a dynamic but still developing growth story as the company undertakes new partnerships and raises capital for late-stage trials.

Building on this recent activity, it is a smart moment to broaden your horizons and discover See the full list for free.

With recent insider buying and promising clinical results fueling momentum, the key question for investors now is whether Viridian Therapeutics remains undervalued, or if the recent surge has already priced in future growth potential.

Price-to-Book Ratio of 5.9x: Is it justified?

Viridian Therapeutics trades at a price-to-book ratio of 5.9x, placing its valuation well above both its direct biotech peers and the wider industry average, based on the last close price of $23.63.

The price-to-book ratio compares a company’s market value to its book value and provides insight into how much investors are willing to pay for each dollar of net assets. In the biotech sector, this can reflect expectations of future breakthroughs or premium positioning for upcoming therapies.

This elevated multiple may be factoring in Viridian’s rapid pipeline progress and high revenue growth forecasts. However, it currently places the stock as "expensive" compared to both its direct peers (4x) and the broader US Biotechs industry (2.6x). If the market shifts toward fairer valuations, there could be significant room for movement in this metric.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book Ratio of 5.9x (OVERVALUED)

However, a significant revenue shortfall or unexpected delays in late-stage trials could quickly challenge the bullish outlook for Viridian Therapeutics.

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

Another View: Discounted Cash Flow Tells a Different Story

While Viridian Therapeutics looks expensive compared to industry averages by its price-to-book ratio, our DCF model arrives at a strikingly different result. The SWS DCF model estimates fair value at $320.15 per share, suggesting the stock is trading far below what its future cash flows imply. This may signal a deep undervaluation.

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

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Viridian Therapeutics for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 832 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Viridian Therapeutics Narrative

If you want to challenge these numbers or dive deeper on your own, you can easily shape your own outlook 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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