Solid Biosciences Valuation Analysis
| SLDB Stock | USD 7.68 0.41 5.64% |
Above Model Estimate
Today
The intrinsic value estimate for Solid Biosciences LLC is based on a 3 months horizon. Lack of a positive P/E ratio suggests inconsistent earnings, which introduces uncertainty into valuation. Extending the time horizon generally improves valuation stability.
For Solid Biosciences, DCF-based intrinsic value and relative multiples each answer a different valuation question. An intrinsic value estimate based on Solid Biosciences' projected cash flows is cross-checked against peer multiples. Valuation is the starting point for investment decisions about Solid Biosciences, not the ending point. Through-cycle cash flows provide a more reliable valuation basis than peak or trough multiples.
Main Profitability Drivers
Solid Biosciences reports a net profit margin of -12.83% alongside an operating margin of -15.88%. Solid Biosciences' net margin exceeding operating margin by 3.05 percentage points indicates contributions from non-operating activities. Solid Biosciences' return on equity of -92.00% and return on assets of -79.00% gauge how effectively the company converts invested capital into earnings. Solid Biosciences' profitability trends show broad deterioration, with the majority of key metrics declining year over year. For a deeper look, explore Solid Biosciences' profitability breakdown.
Price Book 3.97 | Gross Profit | Price Sales 3.65 | Enterprise Value Revenue 1.16 | Wall Street Target Price 17.08 |
Solid Biosciences Cash | $89.42 million |
Cash stood at $59.9 million as of December 31, 2025.
Solid Biosciences is a biotechnology company where value is driven by research pipelines, clinical outcomes, and regulatory approvals, which directly shapes its valuation profile and margin structure. Trading as a turnaround stock in Biotechnology, negative margins indicate the investment case rests on restoring operational profitability. What follows breaks down capital structure, margins, and earnings quality to assess whether current pricing is supported by fundamentals.
Total Value Analysis
The market-value snapshot for Solid Biosciences LLC reflects enterprise value of 548.78 million, market capitalization of 715.46 million, debt of 21.16 million, and cash and equivalents of 162.88 million as of latest reporting. This capital-structure snapshot is most informative when tested against operating margins, cash generation, and debt servicing capacity.| Takeover Price | Market Cap | Debt Obligations | Cash & Equivalents |
548.78 million | 715.46 million | 21.16 million | 162.88 million |
Asset Utilization
One of the ways to look at asset utilization of Solid is to check how much profit was generated for every dollar of assets it reports. Solid Biosciences has a negative usage of current and long term assets of -0.53%, losing $0.005318 for each dollar of current and long term assets held by the company. Ineffective asset utilization conveys that the company is being less productive with each dollar of current and long term assets it has. Strictly speaking, asset utilization of Solid Biosciences LLC shows how ineffective it operates for each dollar spent on its current and long term assets.Macro event markers
Discounted Cash Flow Analysis
Solid Biosciences LLC's custom levered DCF lands near 0.44 per share compared with market pricing around 7.68, leaving the stock above the modeled value. Relative to the modeled value, the stock sits roughly 94.2% higher. The model discounts levered cash flows at 15.36% and assumes terminal growth of 2.0%, while forward free cash flow is near 0.00. Terminal value still drives about 0.0% of enterprise value. while net debt stands around -38.74 Million.Model Value / Share
0.44
Equity value per share from the current custom levered DCF summary row.
Market Price
7.68
Current market price used by the same scenario.
Model Premium
94.2%
Market price sits above the model output.
WACC / LT Growth
15.36% / 2.0%
Forecast horizon: 2021 to 2030
Solid Market Price vs. Intrinsic Value
This chart compares observed market pricing with the model-derived equity value per share across forecast periods. It also illustrates the relative premium or discount, expressed as a percentage difference between market valuation and modeled intrinsic value.
Projected Revenue and Levered Free Cash Flow
Revenue and levered free cash flow projections are presented in billions, outlining the expected financial trajectory over the modeled horizon.
Key Model Assumptions
The inputs below reflect the core assumptions applied in the valuation model, including growth expectations, discount rates, and capital structure considerations.
| Input | Current Value |
|---|---|
| Weighted Average Cost of Capital | 15.36% |
| Long-Term Growth Rate | 2.0% |
| Cost of Equity | 15.71% |
| After-Tax Cost of Debt | 4.07% |
| Debt Weighting | 3.05% |
| Equity Weighting | 96.95% |
| Net Debt | -38.74 million |
| Enterprise Value | 0 |
| Present Terminal Value | 0 |
| Terminal Value Share of EV | 0.00% |
Forecast Detail and Valuation Progression
This table presents the underlying forecast data used in the valuation, including revenue, cash flow generation, discounting effects, and the resulting per-share value across each projected period.
| Year | Revenue | Revenue Growth | Free Cash Flow | PV of LFCF | Equity Value / Share |
|---|---|---|---|---|---|
| 2021 | 13.62 million | 0.00% | -79.05 million | 0 | 0.44 |
| 2022 | 8.09 million | -40.57% | -100.99 million | 0 | 0.44 |
| 2023 | 0 | -100.00% | -95.69 million | 0 | 0.44 |
| 2024 | 0 | 0.00% | -100.67 million | 0 | 0.44 |
| 2025 | 0 | 0.00% | -157.44 million | 0 | 0.44 |
| 2026 | 0 | -35.14% | 0 | 0 | 0.44 |
| 2027 | 0 | -35.14% | 0 | 0 | 0.44 |
| 2028 | 0 | -35.14% | 0 | 0 | 0.44 |
| 2029 | 0 | -35.14% | 0 | 0 | 0.44 |
| 2030 | 0 | -35.14% | 0 | 0 | 0.44 |
Profitability Analysis
Based on Solid Biosciences' financial statements, Solid Biosciences LLC is currently operating at a loss, with net income of -174.32 million. The net profit margin is -12.83% and operating margin is -15.88%, with return on equity at -92.0%. Profitability is deteriorating broadly, with margin and return metrics declining across multiple levels of the income statement.Net Loss | First Reported 2015-12-31 | Previous Quarter -45.78 million | Current Value -49.79 million | Quarterly Volatility 10.42 million |
Macro event markers
The profitability picture for Solid Biosciences LLC starts with how effectively revenue converts to earnings. Both net and operating margins are negative (-12.83% and -15.88% respectively), indicating the business is consuming more capital than it generates at current revenue levels. The ratios below show whether current profitability is durable, improving, or under pressure. Solid Biosciences reports return on equity of -92.0%, reflecting negative returns on shareholder capital.
Earnings per Share Projection vs Actual
EPS projections for Solid Biosciences aggregate analyst models into a benchmark against which actual results are measured. Return on equity of -109.89% provides context for how efficiently Solid Biosciences generates earnings from shareholder capital. The gap between Solid Biosciences' EPS and free cash flow per share signals how much of reported earnings converts to cash. Solid Biosciences' EPS estimates are updated as new analyst reports and company disclosures become available. Projected earnings per share for Solid Biosciences LLC anchor the market's pricing of near-term earnings power. Consensus estimates may not capture non-recurring items or stock-compensation effects, so testing against the current net margin profile (-12.83%), guidance revisions, and prior forecast error adds precision. Solid Biosciences reported estimated earnings of -0.4383 in earnings per share on 31st of March 2026. Revisions to EPS estimates — direction and magnitude — often move valuation multiples before the actual report date.Macro event markers
Earnings Estimation Breakdown
14 analysts contribute to the current consensus. The last reported EPS was -0.53 as of 31st of December 2025.
Last Reported EPS
-0.56
Lowest
-0.4383
Expected EPS
-0.35
Highest
Analyst estimate range around the current expected EPS projection.
Earnings Projection Consensus
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 14 | 71.7% | -0.53 | -0.4383 | -1.99 |
Ownership Allocation
The majority of Solid Biosciences' outstanding shares are owned by institutions. This level of institutional concentration typically reflects the stock's inclusion in major indices, consistent liquidity, and long-term investment attractiveness for funds managing assets on behalf of pensions, endowments, and other institutional clients. With institutions controlling the majority of the float, changes in quarterly 13F filings can provide meaningful signals about shifts in professional investor sentiment.Revenue and Profit Overview
Net Loss for the year was -$174.32 million with loss before overhead, payroll, taxes, and interest of -$96.43 million.Interpreting Recent Signals
With margins currently negative, Solid Biosciences is consuming more capital than it generates. For technology hardware and services companies built on its hardware and enterprise technology model, this directly limits how much weight traditional valuation multiples can carry. Solid Biosciences carries minimal debt at 0.15, more financial cushion than many comparable companies - relevant during periods of heightened market volatility.
Overall Interpretation
Across the key valuation dimensions, Solid Biosciences LLC presents a business currently operating below profitability breakeven, where operating costs tied to the underlying business model outpace revenue within Biotechnology. Negative margins are the dominant signal - the business is consuming more capital than it generates, making traditional valuation multiples unreliable. For technology hardware and services companies, this is a direct consequence of the underlying cost structure and the sensitivity of profitability to volume and pricing. The data points to a business where current multiples are less informative because underlying profitability has not been established. A re-rating depends on revenue growth, margin trajectory, and product cycle dynamics.
Each of the valuation dimensions above captures a different angle on Solid Biosciences LLC, and their combined signal matters more than any single metric. With margins currently negative, the critical question is whether the path to profitability is supported by revenue trends and cost discipline.
Valuation Framework, Methodology & Assumptions
Solid Biosciences is a small-cap equity in Biotechnology, Pharmaceuticals, Biotechnology & Life Sciences, Health Care categories. Peer comparison highlights relative pricing efficiency. For Solid Biosciences, the leading valuation metric is enterprise value (TTM) of 548.78 million, P/B of 3.97, P/S of 3.65.
Solid Biosciences LLC inputs come from periodic company reporting and market reference feeds and are mapped into a consistent reporting framework. Where analyst coverage exists, consensus estimates are factored in. Valuation outputs are model-derived and depend on published assumptions and reference inputs.
The analysis above is generated by quantitative models and is provided for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an endorsement to buy or sell any security. All investing involves risk, including the possible loss of principal. Consult a qualified financial advisor before making investment decisions. See our Terms of Use for full details.
Financial data referenced in this analysis is derived from publicly available SEC filings, audited financial statements, and third-party market data providers. The intrinsic value estimate is generated by Macroaxis quantitative models that incorporate fundamental analysis, technical indicators, and risk metrics.
The methodology combines multiple analytical inputs:
- Fundamental analysis - financial statements, profitability ratios, debt structure, and cash flow metrics sourced from SEC filings and public financial reports
- Technical indicators - historical price patterns, momentum signals, and volatility measures
- Risk assessment - probability of bankruptcy models, market risk metrics, and downside scenario analysis
- Peer comparison - relative valuation against industry peers using standardized multiples
Model outputs are refreshed periodically as new financial data becomes available. Past model performance is not indicative of future results. The intrinsic value estimate reflects a point-in-time calculation and should be considered alongside other research and professional advice.
Data sourced from SEC filings (EDGAR), public financial statements, and market data providers.
Editorial review and methodology oversight provided by: Gabriel Shpitalnik, Member of Macroaxis Editorial Board
Solid Biosciences Current Valuation Indicators
A net-worth review of Solid Biosciences LLC links market cap to balance-sheet health, cash flow, and implied growth expectations. Enterprise value (TTM) is near 548.78 million. Reported values are derived from company filings, audited financial statements, and market data, and are standardized within Macroaxis quantitative models for consistency. Model outputs reflect a point-in-time estimate based on available data and assumptions and should be interpreted alongside changes in operating performance, market conditions, and forward expectations.