A Fresh Look at Ascendis Pharma (ASND) Valuation Following FDA Extension for TransCon CNP Review

Ascendis Pharma (NasdaqGS:ASND) recently shared that the FDA has extended its review timeline for TransCon CNP by three months because of the company’s submission of new post-marketing data. This delay is related to regulatory processes and the timing of commercialization.

See our latest analysis for Ascendis Pharma.

Investors have been riding a wave of momentum with Ascendis Pharma, as the stock posted a year-to-date share price return of nearly 54%. This performance has been supported not just by recent FDA updates, but also by strong trial results for TransCon CNP. While the regulatory delay added some uncertainty, the 56% total shareholder return over the past year suggests confidence in Ascendis’ long-term growth story remains robust.

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With such sharp gains and the FDA’s decision pushing key milestones further out, investors now face a crucial question: is Ascendis Pharma still undervalued or is future growth already reflected in today’s share price?

Most Popular Narrative: 17.6% Undervalued

With the last close at $212.33 and the narrative consensus fair value at $257.66, analysts are pricing in significant upside if Ascendis’s projections materialize. As market expectations evolve, the narrative’s assumptions offer a bold view on growth potential and earnings momentum heading toward 2028.

Expansion of SKYTROFA into adult growth hormone deficiency and pursuit of further label extensions (pediatric and multiple rare indications), alongside continued dominance in pediatric GHD, broadens the addressable market and enables new recurring revenue streams. This contributes to both revenue growth and improving long-term earnings stability.

Read the complete narrative.

Want to know why analysts expect this stock to break away from the pack? The future valuation hinges on blockbuster product launches, higher margins, and a profit turnaround that could surprise skeptics. See what projections have everyone talking by exploring the full details behind this ambitious fair value call.

Result: Fair Value of $257.66 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain. Competition from rival therapies or slower-than-expected reimbursement decisions could challenge future revenue momentum and impact Ascendis Pharma’s growth thesis.

Find out about the key risks to this Ascendis Pharma narrative.

Another View: Market Ratios Tell a Different Story

Looking at valuation from a market perspective, Ascendis Pharma’s price-to-sales ratio stands at 17.3x. This is higher than both the industry average of 12.8x and the estimated fair ratio of 16x. Despite robust growth projections, this gap hints at a potential premium investors are currently paying. Is the optimism already reflected in the price, or is the market overlooking additional opportunities?

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

Build Your Own Ascendis Pharma Narrative

If the consensus view does not match your perspective or you enjoy digging into the numbers yourself, you can quickly build your own story and share your outlook in just a few minutes. Do it your way

A great starting point for your Ascendis Pharma research is our analysis highlighting 4 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.