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Assessing GH Research (GHRS) Valuation After FDA Lifts Clinical Hold On GH001 IND

Simply Wall St · 4d ago

GH Research (NasdaqGM:GHRS) is back in focus after the U.S. Food and Drug Administration lifted the clinical hold on its GH001 IND, clearing the way for U.S. enrollment in treatment-resistant depression trials.

See our latest analysis for GH Research.

The FDA decision appears to have been a key catalyst, with a 1 day share price return of 27.12% and a 7 day share price return of 41.34% lifting the stock to $17.95. At the same time, the 1 year total shareholder return of 99.89% and 3 year total shareholder return of 98.12% indicate that momentum has been building over a longer stretch.

If this kind of regulatory driven move has your attention, it could be a good moment to scan other healthcare stocks that are also shaping the future of patient care.

With GH Research still loss making, trading at $17.95 and sitting well below the average analyst price target of $32.61, is the latest FDA news a chance to buy in, or is the market already pricing in future growth?

Price-to-Book of 3.8x: Is it justified?

At a last close of US$17.95, GH Research is trading on a P/B of 3.8x, which sits below its peer group but above the wider pharmaceuticals industry.

P/B compares the company’s market value to its net assets. This is often a useful lens for early stage biopharma names that are not yet generating revenue or profits. For GH Research, this ratio reflects what the market is currently willing to pay for its cash, intellectual property and pipeline relative to the book value on its balance sheet.

According to the data, the stock’s 3.8x P/B is lower than the peer average of 4.7x, which suggests investors are assigning a lower valuation than some direct comparables. At the same time, the ratio is higher than the broader US pharmaceuticals industry average of 2.5x, which signals that the market is still pricing GH Research at a premium to many sector names.

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

Result: Price-to-book of 3.8x (ABOUT RIGHT)

However, there are still clear risks, including GH Research’s US$42.923m net loss, as well as the binary nature of future trial outcomes and regulatory decisions.

Find out about the key risks to this GH Research narrative.

Build Your Own GH Research Narrative

If you see the numbers differently or simply prefer to rely on your own work, you can build a complete view in minutes with Do it your way.

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

Looking for more investment ideas?

If GH Research has sharpened your focus, do not stop here. Widen your search and let the data point you toward your next opportunity.

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.