Enliven Therapeutics (ELVN) shares moved after the company released encouraging initial Phase 1b ENABLE data for ELVN-001 in heavily pretreated chronic myeloid leukemia patients who are relapsed, refractory, or intolerant to existing tyrosine kinase inhibitors.

The latest ENABLE readout arrived alongside a board refresh, with industry veteran Scott Garland joining as a director. The stock has been highly reactive. Enliven Therapeutics has seen a 7 day share price return of 67.31% and a 90 day share price return of 24.88%, while the 1 year total shareholder return sits at 19.60%, suggesting short term momentum is building from a lower base.

If ELVN's clinical update has caught your attention, this could be a good moment to look across the sector and compare other developing pipelines in healthcare stocks. You might spot a few names worth putting on your watchlist.

After such a sharp move and with shares at $26 compared with an average analyst target of $41.38, the key question is whether ELVN is still trading at a discount or if the latest clinical optimism is already priced in.

Price to Book of 3.2x: Is It Justified?

At a last close of $26, Enliven Therapeutics is trading on a P/B of 3.2x, which sits below the peer average but above the wider US Pharmaceuticals industry.

P/B compares the market value of the company to the book value of its net assets. It is often used for early stage or loss making drug developers where earnings-based multiples such as P/E are not very helpful.

According to the statements, Enliven screens as good value against its direct peers with a P/B of 3.2x versus a peer average of 5.5x. However, it also screens as expensive relative to the broader US Pharmaceuticals industry where the average P/B is 2.6x. This suggests investors are paying more than the industry average book value multiple for a company that is still unprofitable and reports a loss of US$97.207m with no revenue yet.

Result: Price-to-book of 3.2x (ABOUT RIGHT)

However, you still need to factor in clinical and financing risks, as setbacks in early stage trials or the need to fund ongoing losses could quickly change sentiment.

Another View: Our DCF Model Points to Higher Risk

While the 3.2x P/B ratio can look reasonable next to peers, our DCF model paints a different picture. On those cash flow assumptions, Enliven Therapeutics at $26 sits above an estimated fair value of $17.99, which suggests less margin for error if clinical or funding risks arise.

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 879 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 weigh the ENABLE data and valuation on your own terms, you can build a custom view in just a few minutes with Do it your way.

A great starting point for your Enliven Therapeutics research is our analysis highlighting 2 key rewards and 5 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If ELVN has sharpened your focus, do not stop here. Broaden your watchlist by testing different angles and letting the data point you to fresh opportunities.

• Hunt for lower priced opportunities with solid fundamentals by scanning these 3538 penny stocks with strong financials that meet your risk and reward limits.
• Position yourself for potential growth trends by zeroing in on these 28 AI penny stocks that link artificial intelligence themes with listed companies.
• Target mispriced opportunities by filtering for these 879 undervalued stocks based on cash flows that trade below their estimated cash flow based value.

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.