Verastem Valuation

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

Discounted Cash Flow
Simply Wall St
US$200.21
Fair Value
97.1% undervalued intrinsic discount
8
Number of Analysts

Below Fair Value: VSTM ($5.9) is trading below our estimate of fair value ($200.21)

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


Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for VSTM. This is calculated by dividing VSTM's market cap by their current revenue.
What is VSTM's PS Ratio?
PS Ratio32.4x
SalesUS$10.00m
Market CapUS$330.79m

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for VSTM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average11.7x
SAGE Sage Therapeutics
8.6x27.36%US$414.5m
CAPR Capricor Therapeutics
29.4x38.86%US$466.7m
CTMX CytomX Therapeutics
2.8x-21.63%US$395.4m
ANAB AnaptysBio
6.2x8.36%US$642.3m
VSTM Verastem
32.4x51.40%US$330.8m

Price-To-Sales vs Peers: VSTM is expensive based on its Price-To-Sales Ratio (32.4x) compared to the peer average (11.7x).


Price to Sales Ratio vs Industry

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

149 CompaniesPrice / SalesEstimated GrowthMarket Cap
REGN Regeneron Pharmaceuticals
3.7x5.57%US$51.86b
BIIB Biogen
2x-0.63%US$19.22b
INCY Incyte
2.9x2.65%US$12.64b
BMRN BioMarin Pharmaceutical
3.7x7.16%US$10.94b
VSTM 32.4xIndustry Avg. 7.8xNo. of Companies149PS01632486480+
149 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: VSTM is expensive based on its Price-To-Sales Ratio (32.4x) compared to the US Biotechs industry average (7.8x).


Price to Sales Ratio vs Fair Ratio

What is VSTM'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.

VSTM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio32.4x
Fair PS Ratio17.9x

Price-To-Sales vs Fair Ratio: VSTM is expensive based on its Price-To-Sales Ratio (32.4x) compared to the estimated Fair Price-To-Sales Ratio (17.9x).


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 VSTM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$5.90
US$15.75
+166.95%
15.14%US$20.00US$13.00n/a8
May ’26US$7.43
US$13.38
+80.01%
25.06%US$20.00US$8.00n/a8
Apr ’26US$5.82
US$12.86
+120.91%
28.33%US$20.00US$9.00n/a7
Mar ’26US$5.60
US$12.57
+124.69%
33.71%US$20.00US$7.00n/a7
Feb ’26US$6.08
US$12.57
+106.77%
33.71%US$20.00US$7.00n/a7
Jan ’26US$5.17
US$11.86
+129.35%
36.18%US$20.00US$7.00n/a7
Dec ’25US$5.34
US$11.13
+108.33%
29.28%US$15.00US$7.00n/a8
Nov ’25US$3.92
US$11.88
+202.93%
36.57%US$20.00US$7.00n/a8
Oct ’25US$2.82
US$11.88
+321.10%
36.57%US$20.00US$7.00n/a8
Sep ’25US$2.50
US$11.71
+368.57%
39.44%US$20.00US$7.00n/a7
Aug ’25US$2.43
US$14.07
+479.07%
34.73%US$20.00US$7.00n/a7
Jul ’25US$3.25
US$22.50
+592.31%
36.82%US$36.00US$13.00n/a7
Jun ’25US$3.96
US$22.50
+468.18%
36.82%US$36.00US$13.00US$7.527
May ’25US$9.98
US$28.79
+188.43%
23.04%US$36.00US$17.50US$7.437
Apr ’25US$11.73
US$28.79
+145.40%
23.04%US$36.00US$17.50US$5.827
Mar ’25US$13.02
US$28.79
+121.09%
23.04%US$36.00US$17.50US$5.607
Feb ’25US$12.25
US$28.79
+134.99%
23.04%US$36.00US$17.50US$6.087
Jan ’25US$8.14
US$29.44
+261.64%
21.87%US$36.00US$17.50US$5.178
Dec ’24US$7.01
US$29.44
+319.94%
21.87%US$36.00US$17.50US$5.348
Nov ’24US$6.31
US$30.50
+383.36%
24.43%US$39.00US$17.50US$3.927
Oct ’24US$8.13
US$30.50
+275.15%
24.43%US$39.00US$17.50US$2.827
Sep ’24US$9.86
US$32.08
+225.39%
21.41%US$39.00US$17.50US$2.506
Aug ’24US$10.98
US$36.83
+235.46%
24.30%US$54.00US$24.00US$2.436
Jul ’24US$7.44
US$40.67
+446.60%
30.41%US$60.00US$24.00US$3.256
Jun ’24US$12.06
US$39.00
+223.38%
35.25%US$60.00US$24.00US$3.966
AnalystConsensusTarget
Consensus Narrative from 8 Analysts
US$15.75
Fair Value
62.5% undervalued intrinsic discount
8
Number of Analysts

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

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/06/03 22:40
End of Day Share Price 2025/06/03 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Verastem, Inc. is covered by 24 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Matthew CrossAlliance Global Partners
James MolloyAlliance Global Partners
Kalpit PatelB. Riley Securities, Inc.