A Look At Soleno Therapeutics (SLNO) Valuation After Profitable Q4 2025 And VYKAT XR Adoption

Soleno Therapeutics (SLNO) is back in focus after releasing preliminary Q4 and full year 2025 figures that highlight VYKAT XR adoption in Prader Willi syndrome, initial profitability, positive cash flow, and updated revenue guidance. See our latest analysis for Soleno Therapeutics. Despite the recent guidance and clinical publication, the stock has been under pressure, with a 30 day share price return of 20.12% and a 90 day share price return of 38.61%. Even so, the 3 year total shareholder return, which includes reinvested dividends and any other distributions, is more than 7x. This indicates that long term holders have still seen substantial gains, while shorter term momentum appears to be fading. If Soleno’s recent move has you thinking about opportunities in rare disease and biotech, it could be a good time to scan other healthcare stocks that fit your criteria. With shares giving back some of their earlier gains despite profitability, positive cash flow, and analyst targets well above the last close, the key question now is whether Soleno is undervalued or whether the market already prices in future growth. Price-to-Sales of 22.6x: Is it justified? On a P/S of 22.6x at a last close of US$41.54, Soleno looks expensive versus biotech peers, yet some valuation checks still flag it as good value. The P/S ratio compares the company’s market value to its revenue, and is often used for businesses that are not yet profitable but are growing sales. For Soleno, the P/S of 22.6x sits just below the peer average of 23.3x in one comparison, which aligns with the statement that it is considered good value on that specific peer set. However, another comparison shows Soleno trading well above the broader US Biotechs industry average P/S of 12.4x. This points to investors paying a higher price for each dollar of revenue than the typical biotech name. When set against an estimated fair P/S ratio of 19.6x, the current 22.6x also appears expensive, and indicates a level the market could move towards if expectations cool. Explore the SWS fair ratio for Soleno Therapeutics Result: Price-to-Sales of 22.6x (OVERVALUED) However, there are still clear risks, including Soleno’s US$78.45 million net loss and its reliance on successful commercialization in a single rare disease indication. Find out about the key risks to this Soleno Therapeutics narrative. Another View: What Does The SWS DCF Model Say? While the 22.6x P/S suggests Soleno looks expensive, our DCF model points in the opposite direction. It estimates fair value at US$460.32 per share versus the current US$41.54, which implies the market could be pricing in much less future cash generation than this model assumes. For you, that gap can look like risk or potential opportunity, depending on how confident you are in the inputs behind the cash flow forecasts and Soleno’s ability to deliver on them over time. The real question is which signal you trust more: the rich sales multiple or the very large DCF upside. Look into how the SWS DCF model arrives at its fair value. SLNO Discounted Cash Flow as at Jan 2026Simply 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 880 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 base decisions on your own work, you can quickly build a custom view and Do it your way. A great starting point for your Soleno Therapeutics research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Looking for more investment ideas? If Soleno has sharpened your focus on what matters, do not stop here; widen your watchlist and give yourself more quality options to compare. Target potential mispricings by scanning these 880 undervalued stocks based on cash flows that might offer more attractive entry points based on their cash flow profiles. Ride powerful technology shifts by checking out these 26 AI penny stocks that are tying artificial intelligence to real-world business models. Strengthen your income stream by reviewing these 12 dividend stocks with yields > 3% that already provide yields above 3%. 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.