Pharvaris (PHVS) is back in focus after announcing that eight deucrictibant abstracts, including Phase 3 and long term safety data, have been accepted for presentation at the 2026 European Academy of Allergy and Clinical Immunology Congress.

At a share price of US$31.09, Pharvaris has seen a 17.4% year to date share price return and an 85.3% total shareholder return over one year. The 1 day move was a modest pullback that contrasts with stronger 90 day and multi year total shareholder returns, suggesting momentum around clinical progress and changing risk expectations rather than short term trading alone.

If this kind of clinical news has your attention, it could be a good moment to see what else is moving in healthcare by scanning 39 healthcare AI stocks

With Pharvaris posting strong recent returns and trading at a sizeable discount to the average analyst price target, the key question is whether the current price still underestimates deucrictibant’s potential or whether markets are already pricing in future growth.

DCF Signals Large Gap Between Price and Modeled Value

Pharvaris closed at $31.09, while the SWS DCF model estimates a future cash flow value of $354.78 per share. This suggests a very large gap between the current price and the modeled fair value.

The DCF approach projects a company’s potential future cash flows and discounts them back to today using a required rate of return. This produces a single estimate of what those future streams could be worth in present dollar terms.

For a late-stage biopharmaceutical stock like Pharvaris, with no meaningful revenue yet and reported losses of $168.56m, a DCF framework focuses heavily on expectations for future commercialisation of deucrictibant. In this context, the pace at which forecast revenue of 60.9% per year could eventually translate into cash generation is emphasized more than current earnings.

Result: DCF fair value of $354.78 (model indicates undervaluation)

However, the story for Pharvaris still hinges on successful deucrictibant outcomes and eventual commercial execution, while the company currently reports no revenue and a loss of $168.56m.

Another Angle: Market Ratios Point the Other Way

While the SWS DCF model flags Pharvaris as heavily undervalued, the market ratio picture is far less generous. The stock trades on a P/B of 8x, compared with 3.4x for peers and 2.2x for the broader US Pharmaceuticals industry. This implies investors are already paying a premium for future potential.

This gap in P/B multiples suggests valuation risk runs in both directions, with the DCF implying upside and the market multiple hinting at a rich price for a business that currently reports no revenue and a loss of $168.56m. Which signal do you trust more at this stage of the story?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Pharvaris 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 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With both optimism and concern running through this story, it makes sense to move quickly, review the data yourself, and decide where you stand. To evaluate what the market is already signaling on both sides, take a close look at the 2 key rewards and 3 important warning signs

Looking for more investment ideas?

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• Zero in on quality at a discount by reviewing companies highlighted in the 49 high quality undervalued stocks.
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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.