Earnings and clinical progress set the stage for Septerna (SEPN)

Septerna (SEPN) has drawn fresh attention after reporting fourth quarter and full year 2025 results alongside positive Phase 1 data for SEP-631 in chronic urticaria, a combination that puts both finances and pipeline in focus.

The recent earnings update and SEP-631 Phase 1 readout come after a strong run, with a 1 year total shareholder return of around 4x and a 30 day share price return of 14.36% that suggests momentum has been building.

If Septerna’s progress has you thinking more broadly about health related opportunities, you may want to scan our screener of 32 healthcare AI stocks as a next step.

After such a sharp 1 year move, and with the share price still sitting below the average analyst target, the real question now is whether Septerna is mispriced or if the market is already baking in years of future growth.

Preferred Price to Book: Is it justified?

Septerna is being assessed through its P/B ratio, which currently sits at 3.3x compared with both the wider US pharmaceuticals industry and a closer peer group.

The P/B multiple compares the company’s market value with its book value, so it is often used for early stage or unprofitable businesses where earnings based ratios such as P/E are less useful. For Septerna, which is still reporting losses and is forecast to remain unprofitable over the next 3 years, book value can provide a cleaner reference point than earnings.

On that measure, Septerna screens as expensive against the broader US pharmaceuticals industry average P/B of 2x. However, it looks cheaper than a closer peer set that trades around 4.6x. So the market is valuing Septerna’s equity above the sector’s typical balance sheet multiple, but at a discount to more closely comparable names that investors appear willing to pay more for on this metric.

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

However, you are still relying on a loss making business with annual net income of $58.809 million and a premium P/B that could compress if sentiment cools.

Next Steps

With sentiment clearly mixed, both on the recent run and the premium P/B, it makes sense to look at the details for yourself and move quickly to shape your own view, including weighing up the 2 key rewards and 2 important warning signs that our data highlights.

Looking for more investment ideas?

If Septerna has sharpened your focus, do not stop here. Widen your search with other ideas that might fit your style and risk comfort.

• Target steadier potential by reviewing companies flagged as 63 resilient stocks with low risk scores, where our filters highlight businesses with lower assessed risk scores.
• Hunt for value by scanning 46 high quality undervalued stocks, built to surface companies that pair quality fundamentals with prices that look out of step with those metrics.
• Spot possible future standouts by checking our screener containing 23 high quality undiscovered gems, which focuses on companies that have strong fundamentals but limited current attention.

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.