Sutro Biopharma, Inc.

STRO

HealthcareBiotechnologyNASDAQ

$39.60

Market Cap: $336.51M

Sutro Biopharma, Inc. (STRO) Valuation Summary

Updated Apr 6, 2026 22:28

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.41 – $14.17	$3.04	-87.3%
Revenue DCF 10Y	$0.35 – $20.36	$5.73	-76.1%
▸ Trading Multiples
EV/Revenue	$28.96 – $228.23	$48.04	+100.6%

Valuation History

DCF Analysis

Sutro Biopharma, Inc. (STRO) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.73

Market Price

$39.60

Upside / Downside

-85.5%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -102.4% to a target of 13.3% over 5 years, discounted at a WACC of 9.1%, Sutro Biopharma, Inc. (STRO) has an intrinsic value of $5.73 per share (range: $0.35 – $20.36).

Key Assumptions

Current Operating Margin

-102.4%

Target Operating Margin

13.3%

WACC

9.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

9.2%

Target CapEx/Rev

11.8%

D&A/Revenue

7.9%

Tax Rate

21.0%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	35	-65.8%	-79.3%	-28	-28	3	(3)	5	-34	-32
2027	28	-20.2%	-56.1%	-16	-16	2	(3)	-0	-16	-14
2028	38	37.0%	-33.0%	-13	-13	3	(4)	1	-14	-11
2029	55	43.8%	-9.8%	-5	-5	4	(6)	1	-8	-6
2030	71	28.9%	13.3%	9	7	6	(7)	1	5	3
2031	79	11.7%	13.3%	11	8	6	(9)	0	6	4
2032	87	10.0%	13.3%	12	9	7	(10)	0	6	3
2033	94	8.2%	13.3%	13	10	7	(11)	0	6	3
2034	100	6.5%	13.3%	13	11	8	(12)	0	7	3
2035	105	4.7%	13.3%	14	11	8	(12)	0	7	3

Enterprise Value Bridge

Sum of PV(FCFF)-43

Terminal Value (Gordon Growth at 3.0%)113

PV of Terminal Value49

Enterprise Value6

(–) Net Debt-42

Equity Value49

(÷) Shares Outstanding8

Fair Value per Share$5.73

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
7.1%	$0	$5	$10	$15	$20
8.1%	$-0	$4	$8	$11	$15
9.1%	$-1	$3	$6	$9	$12
10.1%	$-1	$2	$4	$7	$10
11.1%	$-1	$1	$4	$6	$8

Current price: $39.60. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 4.9% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Sutro Biopharma, Inc. (STRO) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.04

Market Price

$39.60

Upside / Downside

-92.3%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-102.4%

Target Operating Margin

13.3%

WACC

9.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

9.2%

Target CapEx/Rev

11.8%

D&A/Revenue

7.9%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	35	-65.8%	-79.3%	-28	-28	3	(3)	5	-34	-32
2027	28	-20.2%	-56.1%	-16	-16	2	(3)	-0	-16	-14
2028	38	37.0%	-33.0%	-13	-13	3	(4)	1	-14	-11
2029	55	43.8%	-9.8%	-5	-5	4	(6)	1	-8	-6
2030	71	28.9%	13.3%	9	7	6	(8)	1	4	3

Enterprise Value Bridge

Sum of PV(FCFF)-61

Terminal Value (Gordon Growth at 3.0%)66

PV of Terminal Value44

Enterprise Value-17

(–) Net Debt-42

Equity Value26

(÷) Shares Outstanding8

Fair Value per Share$3.04

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
7.1%	$-2	$2	$6	$10	$14
8.1%	$-2	$1	$4	$7	$11
9.1%	$-2	$0	$3	$6	$8
10.1%	$-2	$-0	$2	$4	$7
11.1%	$-2	$-0	$2	$4	$5

Current price: $39.60. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 4.9% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$46.63

Market Price

$39.60

Upside / Downside

+17.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Sutro Biopharma, Inc. (STRO) has a fair value of $46.63 based on 3 comparable companies in the Biotechnology industry.

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Sutro Biopharma, Inc.STRO	337	2.9x	8.9x
Connect Biopharma Holdings LimitedCNTB	160	3.1x	—
Pliant Therapeutics, Inc.PLRX	81	18.5x	11.7x
Metagenomi, Inc. Common StockMGX	51	2.0x	2.1x
Industry Median		3.1x	6.9x
(*) Revenue		102	33
= Enterprise Value		322	385
(-) Net Debt		-42	-42
Equity Value		365	428
(/) Outstanding shares		8	8
Fair Price		$43	$50

Selected Fair Value (avg of trailing + forward)

$46.63

+17.8%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

$0.41 – $14.17

$3.04

-87.3%

Revenue DCF 10Y

$0.35 – $20.36

$5.73

-76.1%

▸ Trading Multiples

EV/Revenue

$28.96 – $228.23

$48.04

+100.6%

DCF Analysis

Sutro Biopharma, Inc. (STRO) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$5.73

Market Price

$39.60

Upside / Downside

-85.5%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-102.4%

Target Operating Margin

13.3%

WACC

9.1%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

9.2%

Target CapEx/Rev

11.8%

D&A/Revenue

7.9%

Tax Rate

21.0%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	35	-65.8%	-79.3%	-28	-28	3	(3)	5	-34	-32
2027	28	-20.2%	-56.1%	-16	-16	2	(3)	-0	-16	-14
2028	38	37.0%	-33.0%	-13	-13	3	(4)	1	-14	-11
2029	55	43.8%	-9.8%	-5	-5	4	(6)	1	-8	-6
2030	71	28.9%	13.3%	9	7	6	(7)	1	5	3
2031	79	11.7%	13.3%	11	8	6	(9)	0	6	4
2032	87	10.0%	13.3%	12	9	7	(10)	0	6	3
2033	94	8.2%	13.3%	13	10	7	(11)	0	6	3
2034	100	6.5%	13.3%	13	11	8	(12)	0	7	3
2035	105	4.7%	13.3%	14	11	8	(12)	0	7	3

Enterprise Value Bridge

Sum of PV(FCFF)-43

Terminal Value (Gordon Growth at 3.0%)113

PV of Terminal Value49

Enterprise Value6

(–) Net Debt-42

Equity Value49

(÷) Shares Outstanding8

Fair Value per Share$5.73

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
7.1%	$0	$5	$10	$15	$20
8.1%	$-0	$4	$8	$11	$15
9.1%	$-1	$3	$6	$9	$12
10.1%	$-1	$2	$4	$7	$10
11.1%	$-1	$1	$4	$6	$8

Current price: $39.60. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 4.9% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$46.63

Market Price

$39.60

Upside / Downside

+17.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Sutro Biopharma, Inc. (STRO) has a fair value of $46.63 based on 3 comparable companies in the Biotechnology industry.

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Sutro Biopharma, Inc.STRO	337	2.9x	8.9x
Connect Biopharma Holdings LimitedCNTB	160	3.1x	—
Pliant Therapeutics, Inc.PLRX	81	18.5x	11.7x
Metagenomi, Inc. Common StockMGX	51	2.0x	2.1x
Industry Median		3.1x	6.9x
(*) Revenue		102	33
= Enterprise Value		322	385
(-) Net Debt		-42	-42
Equity Value		365	428
(/) Outstanding shares		8	8
Fair Price		$43	$50

Selected Fair Value (avg of trailing + forward)

$46.63

+17.8%