SLNO - Soleno Therapeutics, Inc.
Price:
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CONSENSUS:
Buy
DETAILS
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PRICE TARGET:
$80.00
DETAILS
HIGH:
$107.00
LOW:
$53.00
MEDIAN:
$80.00
CONSENSUS:
$80.00
UPSIDE:
50.91%
AlphaVal
Deterministic, archetype-aware fair value
High-Growth Software
80% confidence
Primary model: Revenue × Terminal Margin DCF
Adjust Assumptions
30.0%
28.0%
12.0%
Key Value Driver
Revenue growth (30%) × margin expansion to 28%
Terminal Value % of EV
59%
Implied Market Multiple
12.9x
Plain-Language Summary
Our base-case estimate uses a discounted cash flow model based on revenue growth and long-run free cash flow margins. We then blend that result with the average analyst price target of $80.00 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $53.35 per share.
Warnings
Stock-based employee pay is 24% of revenue — your ownership shrinks by about 2.0% each year as new shares are issued. Our estimate already accounts for this dilution.
Gross margin of 99% means each dollar of revenue is highly profitable. As the company grows, overhead costs should shrink as a share of revenue, boosting overall profits.
Wall Street's average price target is $80.00 (from 13 analysts). Our estimate is 42% below the consensus -- consider that gap carefully.
Key Risks
- Current FCF misleads — the model values future margins, not today's cash
- SBC dilution is the hidden tax: 2-4% annual share growth compounds fast
- Revenue deceleration is inevitable — the question is when and how steep