Pharvaris (NasdaqGS:PHVS) has drawn fresh investor attention after publishing qualitative research on acquired C1 inhibitor deficiency angioedema. This work feeds directly into endpoint selection for its ongoing deucrictibant Phase 3 CREAATE study.

Against this backdrop, Pharvaris shares trade at $35.14, with a 90 day share price return of 21.38% and a year to date share price return of 32.70%. The 1 year total shareholder return of 58.57% and 3 year total shareholder return of 75.70% point to momentum that investors are still actively reassessing as new clinical and earnings updates emerge.

If you are looking at Pharvaris and wondering what else could sit on your watchlist, this is a good moment to hunt for 41 healthcare AI stocks.

Bulls view Pharvaris as a focused rare disease story, supported by Phase 3 data and new patient-reported outcome work, while bears highlight ongoing losses and execution risk. Which side do current valuation signals appear to support next?

DCF valuation for Pharvaris: how extreme is the discount?

On Simply Wall St estimates, Pharvaris screens as deeply undervalued on a discounted cash flow basis. The SWS DCF model points to a fair value of about $454.50 per share versus the current $35.14 trading level.

The SWS DCF model projects potential future cash flows for Pharvaris and then discounts them back to today using an assumed required return. This approach focuses on the company’s capacity to generate cash over time rather than short term reported earnings, which is particularly relevant for a late stage biopharmaceutical business that is still loss making.

Pharvaris currently reports no revenue and a net loss of $170.9m, so traditional earnings based multiples do not yet tell a full story. A DCF lens instead leans on analyst style forecasts for revenue and earnings. In this case, the forecasts imply very rapid growth from a low base and a move into profitability over the coming years, consistent with the statement that earnings are forecast to grow 59.71% per year.

For investors, the wide gap between the $454.50 model value and the $35.14 share price highlights how sensitive outcomes can be to the cash flow and discount rate assumptions feeding the SWS DCF model.

Result: DCF Fair value of $454.50 (UNDERVALUED)

However, Pharvaris still faces key risks, including trial setbacks for deucrictibant and the ongoing net loss of $170.9m, which could pressure future funding options.

Another view on Pharvaris valuation

While the SWS DCF model points to strong upside for Pharvaris, the market is pricing the stock very differently on a P/B basis. Pharvaris trades around 7.1x book value, compared with 4.7x for peers and 2.5x for the broader US pharmaceuticals group. That gap suggests investors are already paying a premium for the story.

For anyone weighing that premium against the DCF upside, it helps to see how the underlying numbers have been put together. See what the numbers say about this price — find out in our valuation breakdown.

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 52 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

With Pharvaris presenting both optimism around potential rewards and clear concerns on the risk side, this is a good time to review the numbers yourself and consider how they compare with your own expectations. To see both perspectives outlined in one place, review the 2 key rewards and 2 important warning signs

Looking for more Pharvaris investment ideas?

If Pharvaris is already on your radar, do not stop there. Use this moment to widen your watchlist with other focused, data driven opportunities.

• Expand your hunt for potential mispricing by scanning 52 high quality undervalued stocks that combine quality fundamentals with room for the market to reassess expectations.
• Strengthen the income side of your portfolio by reviewing 10 dividend fortresses that pair higher yields with an emphasis on resilience.
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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.