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    A Look At Soleno Therapeutics (SLNO) Valuation After Pivotal VYKAT XR Study Publication And FDA Approval

    Simply Wall St·01/05/2026 16:09:34
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    Soleno Therapeutics (SLNO) is back in focus after publishing Phase 3 withdrawal study results for VYKAT XR in the Journal of Clinical Endocrinology and Metabolism. This reinforces the dataset that supported U.S. FDA approval for hyperphagia in Prader Willi syndrome.

    See our latest analysis for Soleno Therapeutics.

    The publication of the VYKAT XR Phase 3 withdrawal data comes after a mixed stretch for the shares, with a 30 day share price return of an 8.18% decline and a very large 3 year total shareholder return that points to strong longer term interest. Recent momentum therefore looks more muted compared to earlier gains.

    If this kind of clinical milestone has your attention, it might be a good moment to scan other opportunities among healthcare stocks that could fit your watchlist next.

    With Soleno sharing fresh Phase 3 data, a recent 30-day return showing an 8.18% decline, and an intrinsic value estimate suggesting a large discount, is the market underestimating the stock or already pricing in future growth?

    Price-to-Sales of 25.7x: Is it justified?

    Soleno trades on a P/S of 25.7x, while the last close sits at US$47.17, and that puts it on the expensive side versus peers and estimates.

    P/S looks at how much investors are paying for each dollar of revenue, which is often used for early stage or loss making biopharma companies where profits are not yet in place.

    For Soleno, the current 25.7x P/S is higher than the peer average of 20.5x and above the estimated fair P/S of 20.1x, so the market is assigning a richer revenue multiple than both its direct biotech peers and the level suggested by the fair ratio work.

    Compared with the broader US Biotechs industry average P/S of 11.7x, Soleno trades on more than double that multiple, which signals investors are paying a significant premium for its revenue profile today.

    Explore the SWS fair ratio for Soleno Therapeutics

    Result: Price-to-Sales of 25.7x (OVERVALUED)

    However, the story can change quickly if future trial results disappoint or if the recent 24.1% 90 day share price decline signals weakening investor confidence.

    Find out about the key risks to this Soleno Therapeutics narrative.

    Another view on value

    While the current 25.7x P/S suggests an expensive stock, our DCF model points the other way. On that measure, Soleno trades around 89.9% below an estimated fair value of US$465.58, which raises a simple question for you: is sentiment too cautious, or is the model too optimistic?

    Look into how the SWS DCF model arrives at its fair value.

    SLNO Discounted Cash Flow as at Jan 2026
    SLNO Discounted Cash Flow as at Jan 2026

    Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Soleno Therapeutics 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 870 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

    Build Your Own Soleno Therapeutics Narrative

    If you see the numbers differently, or prefer to test your own assumptions against the data, you can build a complete view in just a few minutes by starting with Do it your way.

    A great starting point for your Soleno Therapeutics research is our analysis highlighting 3 key rewards and 1 important warning sign 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.