Enliven Therapeutics (ELVN) is back in focus after Chief Scientific Officer Joseph P. Lyssikatos sold 20,000 shares, following encouraging early ELVN-001 leukemia trial data and as the company prepares for potential later stage studies.

At a latest share price of $28.17, Enliven’s recent 1 month share price return of 81.27% and 90 day share price return of 48.19% suggest strong momentum. The 1 year total shareholder return of 28.63% points to a solid, if less sharp, longer term outcome.

If ELVN’s move has you looking beyond a single clinical story, this could be a useful moment to scan other specialist names through our healthcare stocks.

After such a sharp move and with Enliven still loss making, the real question is whether the current price leaves meaningful upside on the table or if the market is already assuming much of the future growth story.

Preferred Price-to-Book of 3.5x: Is it justified?

On a P/B basis, Enliven Therapeutics looks inexpensive against a selected peer group yet comes across as more expensive than the broader US pharmaceuticals space.

The P/B ratio compares the company’s market value to its net assets on the balance sheet, which can be a useful cross check for early stage biopharma names that are still loss making. For Enliven, the current P/B of 3.5x sits well below the peer average of 16.1x, which suggests the market is assigning a lower value to each dollar of net assets than it does to that group.

At the same time, the same 3.5x P/B stands above the wider US pharmaceuticals industry average of 2.5x, which implies investors are already paying a premium relative to the broader sector. That mix of discount to peers but premium to the industry leaves the current valuation sitting between value and growth profiles, and any future re rating could move toward either reference point depending on how the clinical and revenue story develops.

Result: Price-to-Book of 3.5x (ABOUT RIGHT)

However, you also have to weigh the risks, including the company’s loss of $97.207m with no current revenue, and the uncertainty around early stage trial outcomes.

Another View: DCF Flags a Very Different Story

While the 3.5x P/B ratio sits between peers and the wider industry, our DCF model paints a cooler picture. With an estimate of future cash flow value at $17.99 versus the current $28.17 share price, ELVN screens as expensive on this lens.

For you, that gap raises a simple question: is the market sensibly pricing in future breakthroughs, or leaning too far ahead of what the cash flows currently suggest?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Enliven 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 876 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 Enliven Therapeutics Narrative

If you see the numbers differently or prefer to rely on your own data checks, you can build a complete Enliven story yourself in just a few minutes, starting with Do it your way.

A great starting point for your Enliven Therapeutics research is our analysis highlighting 2 key rewards and 6 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Enliven has sharpened your focus, do not stop here. Use the same momentum to scan a wider set of ideas tailored to what matters most to you.

• Spot potential bargains early by checking out these 3542 penny stocks with strong financials that still show financial strength behind their small market size.
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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.