Edgewise Therapeutics (EWTX) shares were in focus after the company outlined a packed 2026 clinical calendar, detailing timelines for pivotal trials, planned regulatory filings, and key readouts across its muscle and cardiovascular programs.

The recent clinical roadmap has coincided with strong momentum in the share price, with a 59.73% 90 day share price return but a 9.34% decline in 1 year total shareholder return. The 3 year total shareholder return of 120.21% points to a very different longer term picture for investors.

If this kind of clinical news has your attention, it could be a good moment to scan other healthcare stocks that might offer a similar mix of risk and potential reward.

With the shares up 60% over 90 days yet still trading at a large discount to the average analyst price target, investors now have to ask: is there still an opportunity here, or is the market already pricing in future prospects?

Price to Book of 4.7x: Is It Justified?

Edgewise Therapeutics closed at US$24.95, and on a P/B of 4.7x it trades well above the broader US pharmaceuticals industry, which sits at 2.5x.

The P/B ratio compares a company’s market value to its net assets on the balance sheet. It is often used for early stage or unprofitable businesses where earnings-based metrics like P/E are less useful. For a pre revenue, loss making biopharmaceutical group like Edgewise, a higher P/B typically reflects what the market is willing to pay for the pipeline, intellectual property, and management rather than current profits.

Here, the 4.7x P/B looks demanding against the industry average of 2.5x, especially given Edgewise is unprofitable, is forecast to remain unprofitable over the next three years, and is reported to have no meaningful revenue. At the same time, the stock screens as cheaper than a narrower peer set where the average P/B is 46.7x, which shows just how wide valuation ranges can be in this part of the market.

Relative to the pharmaceuticals industry overall, Edgewise changes hands at a materially richer multiple. Versus closer high growth or early stage peers, that same 4.7x P/B looks far lower than the peer average P/B of 46.7x.

Result: Price-to-book of 4.7x (ABOUT RIGHT)

However, that potential comes with real pressure on execution, including the risk that costly trials fail to hit endpoints and that ongoing losses of US$157.241m strain the balance sheet.

Build Your Own Edgewise Therapeutics Narrative

If you see the data differently or just like to kick the tires yourself, you can build your own view in a few minutes: Do it your way.

A great starting point for your Edgewise Therapeutics research is our analysis highlighting 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Edgewise has sparked your interest, do not stop here. A broader watchlist gives you more options when market sentiment shifts and stories change.

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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.