A Look at Zai Lab (NasdaqGM:ZLAB) Valuation Following Q3 2025 Results and Pipeline Progress

Zai Lab (NasdaqGM:ZLAB) just shared its Q3 2025 results, highlighting ongoing product revenue growth driven by NUZYRA and XACDURO, as well as solid progress in its clinical development pipeline.

See our latest analysis for Zai Lab.

After a tough year for shareholders, Zai Lab's recent commercial wins and pipeline progress have sparked some optimism, but the share price still reflects lingering caution. Despite the management’s upbeat tone and new clinical milestones, the 1-year total shareholder return sits at -30.10%, with momentum only stabilizing lately after a sharper 90-day share price decline of nearly 39%.

If you’re tracking shifts in biotech and healthcare, consider exploring See the full list for free. for more companies with growth potential and evolving pipelines.

With the stock now trading significantly below analyst targets, but with recent declines fresh in mind, the key question for investors is whether Zai Lab is currently undervalued or if the market has already accounted for its future pipeline success.

Most Popular Narrative: 58.8% Undervalued

Compared to Zai Lab’s last close of $20.41, the most widely followed narrative values the stock much higher, suggesting major upside if key assumptions unfold as expected. This valuation sets the stage for bold growth projections rooted in future earnings power and market expansion.

Multiple high-potential product launches and label expansions over the next 12 to 18 months (including VYVGART, bemarituzumab, KarXT, TIVDAK, Tumor Treating Fields), combined with a deep pipeline in oncology and immunology, are expected to significantly increase Zai Lab's addressable market and diversify revenue streams, supporting both top-line growth and future earnings.

Read the complete narrative.

Curious why analysts are betting on explosive growth? The secret sauce behind this bullish target lies in a few aggressive but achievable assumptions about revenue expansion, margin turnaround, and profit multiples. Want to see which numbers are making the difference? Only the full narrative reveals the surprising quantitative drivers behind this ambitious fair value.

Result: Fair Value of $49.49 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing revenue growth and intensifying competition in core markets could challenge Zai Lab’s bullish outlook and limit potential upside for investors.

Find out about the key risks to this Zai Lab narrative.

Another View: Multiples Tell a Different Story

While the community DCF model points to Zai Lab being undervalued, the market’s price-to-sales ratio of 5.1x is actually higher than both the peer average of 4.8x and its fair ratio of 4.3x. This suggests the stock is more expensive than it might appear if considering growth forecasts alone, which raises questions about how much upside remains if the market reprices toward fundamentals.

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

Build Your Own Zai Lab Narrative

If you see things differently or prefer your own analysis, you can chart your perspective in under three minutes. Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Zai Lab.

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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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