Enliven Therapeutics (ELVN) has been in focus after releasing initial Phase 1b data for its lead CML candidate, ELVN-001. The data showed clinical activity and a clean safety profile in heavily pretreated patients.

The positive Phase 1b ENABLE update appears to be the main backdrop for Enliven Therapeutics’ recent move, with a 1 month share price return of 58.33% and year to date share price return of 71.88% at a last close of $26.71, while the 1 year total shareholder return of 24.41% suggests momentum has picked up more recently. Alongside this, the appointment of Scott Garland to the board adds experienced industry oversight as the company prepares for further clinical and regulatory milestones on ELVN-001.

If this kind of clinical readout has your attention, it could be a good moment to scan other opportunities across healthcare stocks and see which names fit your watchlist next.

With the stock up 72% year to date and trading at $26.71 against an average analyst target of $41.38, you have to ask: is Enliven still underappreciated, or is the market already baking in a big future?

Price-to-Book of 3.3x: Is it justified?

On a simple yardstick, Enliven Therapeutics trades at a P/B of 3.3x, which screens as more expensive than the broader US pharmaceuticals group but lower than a closer peer set.

P/B compares the company’s market value to its net assets. This can be a common reference point for early stage biopharma names that do not yet have meaningful revenue. For a business still in the clinical stage with a reported loss of $97.207m and no revenue, a higher P/B can often reflect how the market is weighing the pipeline and future funding needs against the current balance sheet.

Here, the picture is mixed. The stock is described as expensive versus the US pharmaceuticals industry average P/B of 2.6x, so the market is assigning a richer multiple than the wider group. At the same time, the 3.3x P/B is flagged as good value relative to a peer average of 5.7x. This suggests investors are paying less per dollar of book value than in a more tightly defined peer basket.

Result: Price-to-book of 3.3x (ABOUT RIGHT)

However, you still have to weigh the clinical risk around ELVN-001 and ELVN-002, as well as ongoing cash needs, given a reported loss of $97.207m and no revenue.

Another View: SWS DCF Model Flags Downside

While the 3.3x P/B looks roughly in line with what you might expect for an early stage biotech, our DCF model paints a tougher picture. With ELVN at $26.71 versus an estimated fair value of $17.99, the shares screen as overvalued on this approach. That gap raises a simple question for you: are you comfortable paying a premium today for a pipeline that still has a lot to prove?

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 875 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 parts of this story do not quite line up with your own view, or you prefer to challenge the assumptions with your own work, you can build a personalised thesis 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 6 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Enliven has sparked your interest, do not stop here. Use the Simply Wall St Screener to spot other ideas that could deserve a place on your radar.

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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.