Built from weaker models, sales multiples or analyst targets, so treat it as a rough guide.
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Valued as a loss-making company: Sales comps and Analyst consensus.
ACCE opinionVerastem Inc. Common Stock (VSTM)
Fair value
Not available
ACCE price target
$10.00
Rating
Not rated
Horizon
12 months
ACCE price target published on 21 Oct 2026, 01:52 CEST; previously $7.50 since 15 Oct 2026, 00:00 CEST.
Price used: $10.04 at the close on 23 Oct 2026, 22:00 CEST.
Models: Analyst consensus and Sales comps.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
51
out of 100
Analysts
100% buy
10 covering
1-year return
+28.6%
Dividend yield
0.00%
Verastem Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Verastem is a clinical-stage oncology company commercializing and developing small-molecule drugs, with its lead franchise built around the KRAS and PI3K/mTOR pathway inhibitors used in hard-to-treat solid tumours. The revenue jump of 1,775% reflects a small base moving from licensing and milestone income into product sales, so the 87.6% gross margin describes a drug business that has not yet scaled its spending. Operating margin of -81.6% and ROE of -471.2% show a company still burning through capital to fund trials, with no earnings to anchor a P/E. The score of 48/100 and absence from any index reflect that this is a speculative biotech whose value rests on pipeline readouts and regulatory decisions rather than current profit. It merits a deeper look if you want exposure to oncology binary outcomes, but the diligence should focus on cash runway, trial timelines and the commercial uptake of the approved product.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
severe
Cash burn outpaces resources
Free cash flow is -$137.5M against a Debt/Equity of 1.34 and operating margin of -81.6%. The company is consuming cash faster than its operations generate it, so dilution or refinancing risk is material.
high
Heavy short interest
Short interest stands at 16.6% of shares. That level signals meaningful bearish conviction and can amplify volatility in either direction around catalysts.
moderate
Revenue growth not durable
Revenue is up 1775.4% year over year, but the 5-year revenue CAGR is -19.0%. The jump looks lumpy, so the trend cannot yet be read as sustained growth.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 1775.4% year over year, showing the newly launched drug is ramping quickly from a low base.
The latest quarter beat expectations, with earnings per share of -0.35 against -0.46 expected, a 23.9% surprise.
Why it could disappoint
Free cash flow over the last twelve months was negative $138M, so the company must keep raising money to fund its losses.
The diluted share count rose 94.1% last fiscal year, meaning existing holders own a much smaller slice of the company.
Nearly all recent growth depends on one newly launched drug, so a slow prescriber ramp or safety label change would hit the whole story.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where VSTM's valuation models land
Price
$10.04
Model fair valueConfidence: low
about $11.13
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Upside
Analyst consensus
Sales comps
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Quality
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