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Assessing Atai Beckley (NasdaqGM:ATAI) Valuation After NASDAQ Biotechnology Index Inclusion

Simply Wall St · 2d ago

Atai Beckley (NasdaqGM:ATAI) just earned a spot in the NASDAQ Biotechnology Index, a move that often draws in fresh institutional money as index funds rebalance and passive strategies update their biotech exposure.

See our latest analysis for Atai Beckley.

The inclusion in the NASDAQ Biotechnology Index caps a volatile stretch, with a 30 day share price return of 13.16 percent but a 90 day share price return still down 23.35 percent. At the same time, the year to date share price return of 168.75 percent and 1 year total shareholder return of 258.33 percent show that momentum in sentiment is rebuilding around Atai Beckley at the current 4.3 dollar share price.

If this kind of rebound in biotech catches your eye, it could be worth exploring other potential ideas among healthcare stocks to see what else is starting to move.

With the share price still trading well below analyst targets despite a sharp rebound, investors now face a key question: is Atai Beckley an underappreciated turnaround story, or is the market already pricing in its future growth?

Price to Book of 9.8x: Is it justified?

Atai Beckley trades on a price to book ratio of 9.8 times at a 4.3 dollar share price, which sends a very different signal depending on the comparison set.

The price to book multiple compares the market value of the company to its net assets on the balance sheet, a common way to judge asset rich or early stage biotech names where traditional earnings metrics are not yet meaningful.

Relative to its direct peers, Atai Beckley actually screens as good value, with its 9.8 times price to book ratio sitting well below the 18.1 times peer average. This suggests investors are not assigning the same premium to its pipeline and growth outlook as they are to comparable companies.

However, when benchmarked against the broader US pharmaceuticals industry, where the average price to book ratio is just 2.4 times, the stock appears far more expensive. This implies the market is already pricing in a substantial amount of future success and may leave less room for disappointment if clinical or commercial milestones slip.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price to book of 9.8x (OVERVALUED)

However, there are still clear risks, including trial setbacks, regulatory uncertainty and ongoing losses, which could quickly deflate optimism around the turnaround case.

Find out about the key risks to this Atai Beckley narrative.

Build Your Own Atai Beckley Narrative

If you see the story differently, or simply prefer to dig into the numbers yourself, you can build a custom view in under three minutes, Do it your way.

A great starting point for your Atai Beckley research is our analysis highlighting 1 key reward and 4 important warning signs that could impact your investment decision.

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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.