WallStSmart
VSTM

Verastem Inc

NASDAQ: VSTM · HEALTHCARE · BIOTECHNOLOGY

$5.40
-1.10% today

Updated 2026-04-29

Market cap
$479.62M
P/E ratio
P/S ratio
15.51x
EPS (TTM)
$-3.02
Dividend yield
52W range
$4 – $11
Volume
2.0M

Verastem Inc (VSTM) Stock Valuation Analysis

Fair value estimate, historical valuation range, and quality signals for VSTM.

WallStSmart Verdict
Overvalued

Current price exceeds what fundamentals support. Risk/reward skewed unfavorably.

Smart Value Score: 20 / 100
P/E (TTM)
Not meaningful for this profile
PEG
Margin of Safety
+59.07%
Fair value $14.27 vs $5.40
EV / EBITDA
-0.2x

VSTM historical valuation range

Where current P/E sits in VSTM's own 5Y range.

Insufficient historical data for 5Y percentile analysis

VSTM intrinsic value (DCF)

DCF-based fair value estimate vs current market price.

Current price
$5.40
Market value
Intrinsic value
$14.27
DCF estimate
Margin of safety
+59.07%
+164.3% upside to fair value

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.

VSTM valuation signals

Quick-read green flags, caution flags, and risks based on current metrics.

Strong margin of safety
Current price 59.1% below DCF intrinsic value estimate. Meaningful downside cushion.
Weak financial quality
Piotroski F-Score of 0/9 suggests deteriorating fundamentals. Valuation requires closer scrutiny.

P/E Ratio — History

No historical P/E data available

P/S Ratio — History

Current: 15.51x

Is VSTM overvalued in 2026?

Verastem Inc (VSTM) currently trades at $5.40 per share with a market capitalization of $479,622,000.00. Based on our multi-factor framework, the stock appears richly valued with a Smart Value Score of 20/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.

VSTM 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 15.5x, the market is valuing the company primarily on its revenue rather than its earnings.

Our discounted cash flow model estimates VSTM's intrinsic value at $14.27 per share, against the current market price of $5.40. This implies a margin of safety of +59.07%. A meaningful cushion exists against model error, making this a reasonable risk-adjusted entry.

Financial quality is a concern. The Piotroski F-Score of 0/9 flags weakening fundamentals that deserve closer scrutiny before the valuation case can be fully trusted.

Bottom line: VSTM appears richly valued on our framework, with a Smart Value Score of 20/100. 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 VSTM overvalued in 2026?

Based on a Smart Value Score of 20/100, VSTM appears overvalued. Current price exceeds what fundamentals currently justify.

What is VSTM's fair value?

Our DCF model estimates VSTM's intrinsic value at $14.27 per share, versus the current price of $5.40. This produces a margin of safety of +59.07%.

What P/E ratio does VSTM trade at?

VSTM does not have a meaningful P/E ratio at this time, typically a sign of unprofitability or an ongoing earnings transition.

Is VSTM a buy based on valuation?

WallStSmart does not issue buy or sell recommendations. Our Smart Value Score of 20/100 reflects the combined read on growth, quality, and price. The profile skews cautious. Consider waiting for a better price or clearer operational improvement.

How does VSTM's valuation compare to its history?

Insufficient historical valuation data exists yet for a confident percentile read on VSTM.

What is VSTM's Smart Value Score?

VSTM's Smart Value Score is 20/100. The Smart Value Score is a proprietary WallStSmart metric blending growth quality, financial health, and valuation attractiveness into a single 0-100 read. Scores above 75 are rare and indicate strong multi-factor alignment.