Assessing Veracyte (VCYT) Valuation As Recent Momentum Meets An Expensive P/E Ratio

Simply Wall St.01-22

AdvertisementWhy Veracyte is on investors’ radar today Veracyte (VCYT) has drawn attention after recent trading, with the share price most recently closing at $43.30. With mixed short term returns and...

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With mixed short term returns and...</p>\n\n<a href=\"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-vcyt/veracyte/news/assessing-veracyte-vcyt-valuation-as-recent-momentum-meets-a\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Assessing Veracyte (VCYT) Valuation As Recent Momentum Meets An Expensive P/E Ratio</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAssessing Veracyte (VCYT) Valuation As Recent Momentum Meets An Expensive P/E Ratio\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-22 22:25 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-vcyt/veracyte/news/assessing-veracyte-vcyt-valuation-as-recent-momentum-meets-a><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AdvertisementWhy Veracyte is on investors’ radar today Veracyte (VCYT) has drawn attention after recent trading, with the share price most recently closing at $43.30. With mixed short term returns and...</p>\n\n<a href=\"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-vcyt/veracyte/news/assessing-veracyte-vcyt-valuation-as-recent-momentum-meets-a\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4139","symbol_name":"生物科技","start_time":0,"source_url":"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-vcyt/veracyte/news/assessing-veracyte-vcyt-valuation-as-recent-momentum-meets-a","article_id":"2605415977","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/6111000-choice2-main-header/1585186599552"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-vcyt/veracyte/news/assessing-veracyte-vcyt-valuation-as-recent-momentum-meets-a","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2605415977","pubTimestamp":1769091923,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Why Veracyte is on investors’ radar today\nVeracyte (VCYT) has drawn attention after recent trading, with the share price most recently closing at $43.30. With mixed short term returns and a stronger past 3 months, investors are reassessing the story.\nSee our latest analysis for Veracyte.\nThe 3.86% 1 day share price return and 21.49% 90 day share price return suggest momentum has been building recently, while the 0.58% 1 year total shareholder return and 68.16% 3 year total shareholder return...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4139":"生物科技","VCYT":"Veracyte Inc","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc"},"translate_title":"评估Veracyte(VCYT)的估值，因为最近的势头符合昂贵的市盈率","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VCYT":1.5,"DCF":1},"content_text":"AdvertisementWhy Veracyte is on investors’ radar today Veracyte (VCYT) has drawn attention after recent trading, with the share price most recently closing at $43.30. With mixed short term returns and a stronger past 3 months, investors are reassessing the story. See our latest analysis for Veracyte. The 3.86% 1 day share price return and 21.49% 90 day share price return suggest momentum has been building recently, while the 0.58% 1 year total shareholder return and 68.16% 3 year total shareholder return point to a mixed longer term journey. If Veracyte has you rethinking opportunities in diagnostics, it could be a good moment to broaden your watchlist across other healthcare names using healthcare stocks. With Veracyte posting revenue of $495.141m, net income of $30.317m, and trading at $43.30 with an estimated intrinsic discount of 28.685%, you have to ask: is there real upside here, or is the market already pricing in future growth? Price-to-Earnings of 112.9x: Is it justified? On current numbers, Veracyte trades on a P/E of 112.9x at a last close of $43.30, which sits well above several key comparison points. The P/E ratio compares the share price to the company’s earnings per share and is a common way investors frame what they are paying for each dollar of profit, especially in sectors like biotech where profit visibility matters. For Veracyte, this 112.9x P/E is described as expensive when lined up against the US Biotechs industry average of 19.8x and a peer average of 66.3x. It is also high compared to an estimated fair P/E of 23.8x that our model suggests the market could eventually lean toward based on broader sector relationships. Explore the SWS fair ratio for Veracyte Result: Price-to-Earnings of 112.9x (OVERVALUED) However, you also have to weigh a 112.9x P/E and a 5 year total return of 16% against the risk of any stumble in diagnostic adoption or reimbursement pressure. Find out about the key risks to this Veracyte narrative. Another way to look at Veracyte’s value The high 112.9x P/E makes Veracyte look expensive, but our DCF model offers a different perspective. On that view, the shares at $43.30 are trading below an estimated future cash flow value of $60.72, which points to a potential valuation gap. That contrast, expensive on earnings yet below our DCF estimate, raises a simple question for you as an investor: is the market overpaying for today’s profits or underestimating the cash the business could generate over time? Look into how the SWS DCF model arrives at its fair value. VCYT 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 Veracyte 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 876 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 Veracyte Narrative If you look at this and come to a different conclusion, or simply want to test your own assumptions against the data, you can build a personalized view of Veracyte in just a few minutes using Do it your way. A great starting point for your Veracyte research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Looking for more investment ideas? If Veracyte has sharpened your focus, do not stop here. The next step is lining up a few more targeted ideas that could sharpen your overall portfolio thinking.  Spot potential value by scanning these 876 undervalued stocks based on cash flows that might be trading below what their cash flows suggest. Zero in on income potential through these 13 dividend stocks with yields > 3% offering yields above 3% that could support a steadier return profile. Lean into future facing themes with these 19 cryptocurrency and blockchain stocks that are tied to digital assets and blockchain infrastructure.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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