Verrica Pharmaceuticals Inc
NASDAQ: VRCA · HEALTHCARE · BIOTECHNOLOGY
Updated 2026-06-05
Verrica Pharmaceuticals Inc (VRCA) Stock Valuation Analysis
Fair value estimate, historical valuation range, and quality signals for VRCA.
Current price exceeds what fundamentals support. Risk/reward skewed unfavorably.
VRCA historical valuation range
Where current P/E sits in VRCA's own 5Y range.
VRCA intrinsic value (DCF)
DCF-based fair value estimate vs current market price.
Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.
VRCA valuation signals
Quick-read green flags, caution flags, and risks based on current metrics.
P/E Ratio — History
P/S Ratio — History
Current: 2.79x
Is VRCA overvalued in 2026?
Verrica Pharmaceuticals Inc (VRCA) currently trades at $7.40 per share with a market capitalization of $103,502,000.00. Based on our multi-factor framework, the stock appears richly valued with a Smart Value Score of 27/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.
VRCA currently has no meaningful P/E ratio, which typically signals that the company is unprofitable, near breakeven, or emerging from a loss-making period. With a P/S ratio of 2.8x, the market is valuing the company primarily on its revenue rather than its earnings.
Our discounted cash flow model estimates VRCA's intrinsic value at $25.37 per share, against the current market price of $7.40. This implies a margin of safety of +78.08%. A meaningful cushion exists against model error, making this a reasonable risk-adjusted entry.
The Piotroski F-Score of 5/9 puts financial quality in a middling range, neither a standout strength nor an obvious red flag.
Bottom line: VRCA appears richly valued on our framework, with a Smart Value Score of 27/100. At current levels the risk/reward is skewed against the buyer. A materially lower price or significant operational improvement would be needed to change the picture.
Frequently asked questions
Is VRCA overvalued?
VRCA scores 27/100 on our Smart Value Score (Grade F), a weak overall profile. The DCF also shows a positive margin of safety, so price and fundamentals line up reasonably well.
What is VRCA's fair value?
Our DCF model estimates VRCA's intrinsic value at $25.37 per share, versus the current price of $7.40, a margin of safety of +78.08%. Fair value is the present value of the cash flows we project the business to produce, so a price below it means the market is pricing the stock below that conservative estimate.
What P/E ratio does VRCA trade at?
VRCA does not have a meaningful P/E right now, usually a sign of unprofitability or an earnings transition. For unprofitable growth names, price-to-sales is the more useful gauge.
Is VRCA a buy based on valuation?
Our Smart Value rating for VRCA is Strong Sell, from a Smart Value Score of 27/100 that blends growth, quality, and valuation. The profile skews cautious, and a better price or clearer operating improvement would strengthen the case. This is research to inform your decision, not personalized financial advice.
How does VRCA's valuation compare to its history?
There is not enough historical valuation data yet for a confident percentile read on VRCA.
What is VRCA's Smart Value Score?
VRCA's Smart Value Score is 27/100. It is a proprietary WallStSmart metric blending growth quality, financial health, and valuation into a single 0-100 read, and scores above 75 are rare, signaling strong multi-factor alignment.