Earnings shift the focus for Pharvaris (NasdaqGS:PHVS)

Pharvaris (NasdaqGS:PHVS) recently reported first quarter 2026 results that showed its net loss narrowed to €39.2 million from €46.34 million a year earlier, with basic loss per share improving from €0.85 to €0.60.

The share price has eased in the past week and month, yet the year-to-date share price return of 12.08% and 1-year total shareholder return of 85.62% suggest momentum has built over a longer horizon. Recent earnings and the upcoming ISPOR presentation help frame changing risk expectations.

If you are weighing Pharvaris alongside other future focused health companies, this is a good moment to scan 34 healthcare AI stocks

With Pharvaris stock up 12.08% year to date and 85.62% over 1 year, yet trading at a 92.20% discount to one intrinsic estimate, is this a genuine entry point or is the market already pricing in future growth?

DCF valuation: a wide gap to intrinsic value

According to the SWS DCF model, Pharvaris has an estimated fair value of $380.60 per share, compared with the recent close of $29.68, which implies a very large discount. In simple terms, the model suggests the share price is well below the value implied by its projected future cash flows at this point in time.

The DCF model estimates the cash Pharvaris could generate in future and discounts those cash flows back to today, using a required rate of return to reflect risk and the time value of money. This produces a single present value figure per share, which can then be set against the current market price.

For a late stage biopharmaceutical company with minimal current revenue, unprofitable operations and products still in development, a DCF output is highly sensitive to assumptions around future launch timing, revenue build up and eventual profitability. That sensitivity is one reason the $380.60 figure should be viewed as one scenario based on the model inputs, rather than a fixed outcome, even if the current 92.20% discount to that estimate stands out.

Result: DCF Fair value of $380.60 (UNDERVALUED)

However, the absence of current revenue and the reliance on late stage deucrictibant trials mean that any setback or delay could quickly challenge this valuation gap.

Another view: P/B ratio paints a very different picture

If the SWS DCF model points to a large discount, the current P/B ratio pulls in the other direction. Pharvaris trades at 7.1x book value, compared with 5.7x for peers and 2.3x for the broader US pharmaceuticals group, which signals investors are already paying a premium for future expectations.

That kind of gap can mean either an opportunity if those expectations are met or valuation risk if the story changes. The key question is which side of that trade you are more comfortable owning.

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

The mix of strong recent returns, a wide DCF gap and a premium P/B can feel conflicting, so treat this as a prompt to look at the numbers yourself, compare scenarios, and move quickly to form a clear view by weighing Pharvaris's 2 key rewards and 3 important warning signs

Looking for more investment ideas?

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• Target potential mispricings by scanning companies our models flag as attractively priced through 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.