Nuvalent (NUVL) AI Stock Analysis

• Market Cap: $7.63B
• Dividend Yield: N/A
• Average Volume (3M): 469.36K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.99
• Revenue Growth: N/A
• EPS Growth: -52.84%
• Country: US
• Employees: 162
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.70
• Shares Outstanding: 67,271,460
• 10 Day Avg. Volume: 508,084
• 30 Day Avg. Volume: 469,363
• PEG Ratio: -0.25
• Price to Book (P/B): 4.86
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -28.09
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: -17.70
• 1Y Price Target: $142.47
• Price Target Upside: 41.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $104.00 ▲(3.07% Upside)

The score is primarily held back by pre-revenue financials with widening losses and ongoing cash burn, partially offset by a strong, debt-free balance sheet. Corporate events are supportive (positive clinical data and improved funding runway), while technicals are neutral and valuation is constrained by ongoing losses and no dividend.

Positive Factors

Strong Balance Sheet

A debt-free balance sheet reduces financial risk and interest burden, providing flexibility to invest in R&D and strategic initiatives.

Positive Clinical Data

Promising clinical trial results enhance the potential for regulatory approval and future revenue generation from new therapies.

Extended Funding Runway

Extended funding runway supports ongoing R&D and operational stability, reducing the need for immediate external financing.

Negative Factors

Pre-Revenue Model

Lack of revenue generation limits financial self-sufficiency, making the company reliant on external funding and increasing investment risk.

Widening Losses

Increasing losses reflect high operational costs without revenue offset, challenging profitability and long-term financial health.

Negative Cash Flow

Persistent negative cash flow indicates ongoing cash burn, necessitating continued reliance on cash reserves or future financing.

Nuvalent Business Overview & Revenue Model

Company Description

Nuvalent, Inc., a clinical stage biopharmaceutical company, develops therapies for patients with cancer. Its lead product candidates are NVL-520, a brain-penetrant ROS1-selective inhibitor to inhibit ROS1 fusions that express the normal ROS1 kinase domain without any drug-resistant mutations and remain active in the presence of mutations conferring resistance to approved and investigational ROS1 inhibitors, which is under Phase I development; and NVL-655, a brain-penetrant ALK-selective inhibitor, to address the clinical challenges of emergent treatment resistance, central nervous system-related adverse events, and brain metastases that might limit the use of first-, second-, and third-generation ALK inhibitors that is under Phase I/II clinical trial. The company was incorporated in 2017 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Nuvalent makes money through the development and commercialization of its proprietary drug candidates. The company's revenue model primarily involves bringing its pipeline of targeted cancer therapies through clinical trials and regulatory approval to eventually enter the market. Once approved, these therapies can generate income through sales, licensing agreements, and potential partnerships with larger pharmaceutical companies. Additionally, Nuvalent may engage in collaborations that provide milestone payments and royalties, contributing to its earnings.

Nuvalent Financial Statement Overview

Summary

Mixed fundamentals: a strong, debt-free balance sheet (high balance sheet score) is offset by a pre-revenue model with widening losses (low income statement score) and persistently negative operating/free cash flow with a sizable burn profile (low cash flow score).

Income Statement

The company is still pre-revenue (revenue is $0 across the provided periods), so profitability is entirely driven by operating spend. Losses have widened materially over time, with EBIT declining from about -$17M (2020 annual) to -$280M (2024 annual) and to roughly -$398M in TTM (Trailing-Twelve-Months), indicating accelerating investment and a rising burn profile. While this is not unusual for biotechnology, the lack of revenue offset keeps earnings quality and visibility weak.

Balance Sheet

The balance sheet is a key strength: total debt is $0 in recent years (including TTM (Trailing-Twelve-Months)), limiting financial risk and interest burden. Equity is substantial (about $845M in TTM (Trailing-Twelve-Months)), supporting the ongoing R&D-heavy model. The main weakness is that returns on equity are negative (driven by net losses), and equity declined from 2024 annual to TTM (Trailing-Twelve-Months), consistent with continued cash consumption.

Cash Flow

Cash generation remains weak, with operating cash flow and free cash flow negative every year, worsening to about -$264M in TTM (Trailing-Twelve-Months) versus -$185M in 2024 annual. That said, the TTM (Trailing-Twelve-Months) free cash flow figure shows improvement versus the prior period per the provided growth metric, suggesting some moderation in burn. Overall, the company is still reliant on its cash reserves and/or future financing until revenue ramps.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	0.00	0.00	0.00	0.00	0.00	0.00
EBITDA	-407.99M	0.00	-126.22M	-86.11M	-45.82M	-16.91M
Net Income	-381.44M	-260.76M	-126.22M	-81.85M	-46.34M	-14.56M
Balance Sheet
Total Assets	979.91M	1.14B	732.38M	482.46M	293.82M	10.65M
Cash, Cash Equivalents and Short-Term Investments	943.10M	1.12B	719.90M	472.16M	288.11M	10.33M
Total Debt	0.00	0.00	0.00	0.00	0.00	2.23M
Total Liabilities	134.51M	71.96M	31.82M	19.48M	8.79M	41.97M
Stockholders Equity	845.40M	1.07B	700.56M	462.98M	285.04M	-31.32M
Cash Flow
Free Cash Flow	-263.88M	-185.06M	-99.74M	-64.97M	-40.00M	-14.95M
Operating Cash Flow	-263.88M	-185.06M	-99.74M	-64.97M	-40.00M	-14.95M
Investing Cash Flow	-13.18M	-573.51M	-143.53M	-10.66M	-220.03M	0.00
Financing Cash Flow	23.57M	568.88M	336.85M	248.92M	318.22M	22.27M

Nuvalent Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 100.90
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NUVL, the sentiment is Neutral. The current price of 100.9 is below the 20-day moving average (MA) of 104.79, below the 50-day MA of 104.75, and above the 200-day MA of 87.32, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 45.10 is Neutral, neither overbought nor oversold. The STOCH value of 36.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NUVL.

Nuvalent Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGTX	62 Neutral	$4.62B	9.99	111.96%	―	100.88%	―
RNA	62 Neutral	$10.96B	-17.46	-32.44%	―	106.27%	-43.90%
CYTK	57 Neutral	$7.77B	-9.55	―	―	2609.26%	-17.08%
AXSM	55 Neutral	$9.35B	-38.70	-275.50%	―	65.83%	28.50%
NUVL	54 Neutral	$7.63B	-18.98	-38.79%	―	―	-52.84%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Nuvalent Corporate Events

Nuvalent’s Royalty Interest Acquired by Royalty Pharma

Royalty Pharma plc has acquired a royalty interest in Nuvalent‘s investigational products, neladalkib and zidesamtinib, for up to $315 million from an undisclosed third party. This acquisition involves a 1.5% royalty on net sales, potentially impacting Nuvalent’s financial operations and market positioning.

The most recent analyst rating on (NUVL) stock is a Buy with a $140.00 price target. To see the full list of analyst forecasts on Nuvalent stock, see the NUVL Stock Forecast page.

Ron Squarer Joins Nuvalent Board as Independent Director

On December 9, 2025, Matthew Shair, Ph.D., resigned from the board of directors of Nuvalent, Inc., a decision not due to any disagreement with the company’s operations or policies. Subsequently, on December 10, 2025, Ron Squarer was elected as a new independent director, with compensation including stock options and restricted stock units valued at $600,000, marking a strategic addition to the board.

The most recent analyst rating on (NUVL) stock is a Buy with a $128.00 price target. To see the full list of analyst forecasts on Nuvalent stock, see the NUVL Stock Forecast page.

Nuvalent Announces $500M Stock Offering Pricing

On November 18, 2025, Nuvalent, Inc. announced the pricing of an underwritten public offering of its Class A common stock at $101.00 per share, expecting to raise approximately $500 million in gross proceeds. The offering, managed by J.P. Morgan, Jefferies, TD Cowen, and Cantor, is anticipated to close on November 20, 2025, and aims to fund the company’s operations and capital expenditures into 2029. The Selling Stockholders, Deerfield Healthcare Innovations Fund, L.P. and Deerfield Private Design Fund IV, L.P., have granted underwriters a 30-day option to purchase additional shares, with Nuvalent not receiving proceeds from these additional sales. This strategic financial move is expected to bolster Nuvalent’s operational capabilities and strengthen its market position in the biopharmaceutical industry.

The most recent analyst rating on (NUVL) stock is a Buy with a $158.00 price target. To see the full list of analyst forecasts on Nuvalent stock, see the NUVL Stock Forecast page.

Nuvalent Announces Positive Data for ALKOVE-1 Trial

On November 17, 2025, Nuvalent announced positive topline pivotal data for neladalkib in TKI pre-treated patients with advanced ALK-positive NSCLC from their ALKOVE-1 Phase 1/2 clinical trial. The data showed promising efficacy and a well-tolerated safety profile, with notable response rates and duration of response in patients with prior treatments. The company plans to discuss these findings with the FDA and present detailed results at a future medical meeting, indicating potential advancements in treatment options for this patient population.

The most recent analyst rating on (NUVL) stock is a Buy with a $126.00 price target. To see the full list of analyst forecasts on Nuvalent stock, see the NUVL Stock Forecast page.