Stoke Therapeutics (STOK) Puts STK 002 Data In Focus Following An Undervalued Narrative

Stoke Therapeutics (STOK) has put fresh clinical data for its RNA-based therapy STK-002 in front of eye specialists at the AAO 2026 meeting, spotlighting progress in Autosomal Dominant Optic Atrophy, where no treatments currently exist.

For investors, the fresh AAO 2026 data arrives during a rough patch for the Stoke Therapeutics share price. The stock has fallen about 7% over the past week and roughly 22% over the past month, leaving it at US$22.50 with year to date share price returns down about 27% and 1 year total shareholder return down about 36%. Even so, the 3 year total shareholder return remains very large at roughly 5x. This pattern suggests that long term believers are still ahead, while near term momentum has cooled as the market reassesses both the opportunity and the risks around the pipeline, including STK-002 and zorevunersen.

Compare Stoke Therapeutics with other rare-disease and high-potential biotech ideas by scanning a curated set of 20 high quality undiscovered gems that are still flying under most investors' radar.

Bulls point to Stoke Therapeutics’ rare disease focus and RNA toolkit, while bears focus on trial risk and ongoing losses. Which case aligns better with where the shares trade today, based on simple valuation grounds?

Most Popular Narrative: 50.1% Undervalued

Against the latest close at $22.50, the most followed narrative pegs Stoke Therapeutics’ fair value at $45.10, creating a wide gap that hinges on how its rare disease pipeline and future earnings potential play out under a 7.17% discount rate.

The shift toward disease-modifying therapies in severe epilepsies raises the regulatory and evidentiary bar. Any delay, additional data requirements, or failure to show clear differentiation versus emerging competitors could push out potential launch timing and limit peak revenue.

See why 6 investors see Stoke Therapeutics as 50% undervalued.

Result: Fair Value of $45.10 (UNDERVALUED)

Still, the bullish Stoke Therapeutics narrative could unravel if the EMPEROR Phase 3 data disappoints or if payers push back hard on rare disease pricing and reimbursement.

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

Another View: Stoke Therapeutics Through A Simpler Multiple

The story looks very different when you swap out future fair value estimates and just look at what the market is paying for Stoke Therapeutics’ assets today. On a P/B of 4.2x versus 2x for the wider US biotech group and 48.4x for direct peers, the stock screens more expensive than the sector but far cheaper than similar companies. Is that a margin of safety or a value trap if the pipeline stumbles?

For a closer look at how this price level compares with the underlying numbers, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed sentiment around Stoke Therapeutics is clear, so move quickly, review the core numbers, and weigh the 2 key rewards and 2 important warning signs.

Looking for more Stoke Therapeutics style ideas?

If Stoke Therapeutics has sharpened your focus on where capital goes next, do not stop here. Broaden your watchlist and upgrade the quality of ideas at your fingertips.

• Target resilient balance sheets and steadier fundamentals by scanning the list of solid balance sheet and fundamentals (25 results) before market attention rushes in.
• Hunt for mispriced quality and pressure test your Stoke Therapeutics thesis alongside a 32 high quality undervalued stocks that could suit a similar mindset.
• Balance offense with defense and round out your watchlist with a 32 resilient stocks with low risk scores that can help steady your portfolio when sentiment swings.

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.

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