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    A Look at MBX Biosciences (MBX) Valuation After Goldman Sachs’ Bearish Initiation of Coverage

    Simply Wall St·12/19/2025 05:22:02
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    MBX Biosciences (MBX) slipped onto more traders radars after Goldman Sachs launched coverage with a bearish stance, questioning how much value the company can prove beyond its lead hormone therapy canvuparatide.

    See our latest analysis for MBX Biosciences.

    Despite Goldman’s cautious view, MBX’s recent 1 day share price return of 3.5 percent to 28.67 dollars comes after a powerful 90 day share price return of 186.7 percent and 1 year total shareholder return of 40.8 percent, suggesting momentum is still firmly building around upcoming clinical and regulatory milestones.

    If MBX has you thinking about what else could surprise to the upside in biotech, this might be a good moment to explore healthcare stocks for more ideas beyond a single name.

    With the stock having nearly doubled Goldman’s price target and surging on future trial hopes, investors now face a key question: Is MBX Biosciences still undervalued, or is the market already pricing in that growth?

    Price to Book of 3.3 times, Is it justified?

    On a price to book basis, MBX Biosciences trades above both its immediate peer set and the wider US pharmaceuticals space, despite still being pre revenue.

    The price to book ratio compares a company’s market value to its net assets, a common yardstick for early stage biotechs that lack meaningful sales or earnings. For MBX, a 3.3 times price to book multiple versus 3.2 times for direct peers and 2.5 times for the broader US pharmaceuticals industry implies investors are paying a premium for pipeline potential rather than current fundamentals.

    This richer multiple signals the market is already ascribing extra value to MBX’s hormone and metabolic programs, even though analysts do not forecast revenue or profitability in the near term. In other words, the valuation has moved ahead of traditional balance sheet support, and any disappointment on clinical or regulatory progress could have an outsized impact if sentiment cools back towards sector norms.

    Relative to the industry, MBX’s price to book premium stands out, suggesting expectations are running hotter than the average US pharma name and even slightly above close peers. That elevated stance leaves less margin for error if earnings and cash flows lag the optimistic narrative that appears to be embedded in today’s share price.

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

    Result: Price to Book of 3.3 times (OVERVALUED)

    However, any setback in MBX 2109’s Phase 2 data or delays advancing MBX 1416 and MBX 4291 could quickly deflate today’s optimism.

    Find out about the key risks to this MBX Biosciences narrative.

    Build Your Own MBX Biosciences Narrative

    If this perspective does not quite align with your own, or you prefer to dig into the numbers first hand, you can build a tailored view in just a few minutes using Do it your way.

    A great starting point for your MBX Biosciences research is our analysis highlighting 5 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    Before you move on, lock in your next set of opportunities by putting the Simply Wall Street Screener to work for you on stocks beyond MBX.

    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.