• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Pulse Biosciences (PLSE): Valuation Check After FDA IDE Approval for nPulse Cardiac Ablation Trial

    Simply Wall St·12/26/2025 00:23:14
    Listen to the news

    Pulse Biosciences (PLSE) just cleared a key regulatory hurdle, with the FDA approving its Investigational Device Exemption for a pivotal U.S. study of the nPulse Cardiac Catheter Ablation System in paroxysmal atrial fibrillation.

    See our latest analysis for Pulse Biosciences.

    The FDA green light seems to have reminded investors what is at stake, with a 1 week share price return of 4.21 percent and a 1 month share price return of 13.52 percent standing in contrast to a weaker year to date share price return and still impressive 3 year total shareholder return of over 500 percent, hinting that momentum could be rebuilding after a volatile stretch.

    If this cardiac IDE approval has you rethinking opportunities in healthcare innovation, it could be a good moment to explore other potential movers across healthcare stocks.

    With shares still well below analysts’ targets despite eye catching long term gains and virtually no current revenue, is Pulse Biosciences quietly undervalued after this FDA milestone, or is the market already pricing in its future growth?

    Price to Book of 10.9x: Is it justified?

    On a price to book basis, Pulse Biosciences trades at a lofty 10.9 times, making the stock look expensive relative to both its industry and its closest peers at the latest close of $14.86.

    The price to book ratio compares a company’s market value to its net assets. It is often used for early stage, asset light or pre revenue medical technology businesses where earnings are not yet meaningful. In this case, investors appear to be paying a substantial premium over the accounting value of Pulse Biosciences’ balance sheet, effectively banking on future commercial success of its bioelectric platforms rather than current fundamentals.

    That premium stands out when set against the broader US Medical Equipment sector, where the average price to book multiple is just 2.2 times, and even against Pulse Biosciences’ peer group, which trades around 2.5 times book value. The gap suggests the market is assigning Pulse Biosciences a growth and execution story well above the norm for the space, leaving little margin for disappointment if regulatory or commercialization milestones slip.

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

    Result: Price-to-Book of 10.9x (OVERVALUED)

    However, setbacks in pivotal trial timelines or failure to convert its platform into meaningful revenue could quickly unwind sentiment around this high multiple story.

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

    Build Your Own Pulse Biosciences Narrative

    If you see the story differently or want to dig into the numbers yourself, you can build a personalized view in minutes: Do it your way.

    A great starting point for your Pulse Biosciences research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

    Looking for more high conviction ideas?

    Before you move on, consider scanning focused stock ideas on Simply Wall Street to help you identify your next major 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.