Sol-Gel Technologies Ltd.

SLGL

HealthcareBiotechnologyNASDAQ

$69.54

Market Cap: $195.40M

Sol-Gel Technologies Ltd. (SLGL) Valuation Summary

Updated May 11, 2026 04:49

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$4.66 – $49.60	$18.63	-73.2%
Revenue DCF 10Y	$0.34 – $26.32	$8.39	-87.9%
▸ Trading Multiples
EV/Revenue	$22.81 – $358.24	$62.88	-9.6%

Valuation History

DCF Analysis

Sol-Gel Technologies Ltd. (SLGL) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$8.39

Market Price

$69.54

Upside / Downside

-87.9%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -39.2% to a target of 13.2% over 5 years, discounted at a WACC of 8.6%, Sol-Gel Technologies Ltd. (SLGL) has an intrinsic value of $8.39 per share (range: $0.34 – $26.32).

Key Assumptions

Current Operating Margin

-39.2%

Target Operating Margin

13.2%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.8%

Target CapEx/Rev

12.6%

D&A/Revenue

8.4%

Tax Rate

0.0%

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	5	-72.7%	-28.7%	-2	-2	0	(0)	2	-3	-3
2027	17	222.6%	-18.2%	-3	-3	1	(1)	7	-9	-8
2028	38	123.4%	-7.8%	-3	-3	3	(2)	12	-14	-11
2029	34	-10.0%	2.7%	1	1	3	(2)	-2	4	3
2030	31	-10.0%	13.2%	4	4	3	(2)	-2	6	4
2031	28	-8.9%	13.2%	4	4	2	(2)	-2	5	3
2032	26	-6.5%	13.2%	3	3	2	(3)	-1	4	2
2033	25	-4.1%	13.2%	3	3	2	(3)	-1	3	2
2034	25	-1.8%	13.2%	3	3	2	(3)	-0	3	1
2035	25	0.6%	13.2%	3	3	2	(3)	0	2	1

Enterprise Value Bridge

Sum of PV(FCFF)-5

Terminal Value (Gordon Growth at 3.0%)40

PV of Terminal Value18

Enterprise Value13

(–) Net Debt-10

Equity Value23

(÷) Shares Outstanding3

Fair Value per Share$8.39

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.6%	$3	$9	$15	$20	$26
7.6%	$2	$6	$11	$15	$20
8.6%	$1	$5	$8	$12	$16
9.6%	$0	$4	$7	$10	$13
10.6%	$0	$3	$6	$8	$11

Current price: $69.54. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 55.5% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Sol-Gel Technologies Ltd. (SLGL) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$18.63

Market Price

$69.54

Upside / Downside

-73.2%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-39.2%

Target Operating Margin

13.2%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.8%

Target CapEx/Rev

12.6%

D&A/Revenue

8.4%

Tax Rate

0.0%

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	5	-72.7%	-28.7%	-2	-2	0	(0)	2	-3	-3
2027	17	222.6%	-18.2%	-3	-3	1	(1)	7	-9	-8
2028	38	123.4%	-7.8%	-3	-3	3	(3)	12	-15	-12
2029	34	-10.0%	2.7%	1	1	3	(4)	-2	2	2
2030	31	-10.0%	13.2%	4	4	3	(4)	-2	5	3

Enterprise Value Bridge

Sum of PV(FCFF)-18

Terminal Value (Gordon Growth at 3.0%)87

PV of Terminal Value60

Enterprise Value42

(–) Net Debt-10

Equity Value52

(÷) Shares Outstanding3

Fair Value per Share$18.63

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.6%	$18	$26	$34	$42	$50
7.6%	$12	$18	$24	$31	$37
8.6%	$9	$14	$19	$24	$29
9.6%	$6	$11	$15	$19	$23
10.6%	$5	$8	$12	$15	$19

Current price: $69.54. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 55.5% 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

$62.88

Market Price

$69.54

Upside / Downside

-9.6%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Sol-Gel Technologies Ltd. (SLGL) has a fair value of $62.88 based on 6 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
Sol-Gel Technologies Ltd.SLGL	194	9.5x	13.8x
Ovid Therapeutics Inc.OVID	369	51.0x	—
Zentalis Pharmaceuticals, Inc.ZNTL	300	4.6x	144.1x
MacroGenics, Inc.MGNX	191	1.6x	2.2x
Oramed Pharmaceuticals Inc.ORMP	165	60.2x	178.5x
Pliant Therapeutics, Inc.PLRX	77	15.8x	10.0x
Coya Therapeutics, Inc.COYA	69	2.8x	10.0x
Industry Median		10.2x	10.0x
(*) Revenue		19	13
= Enterprise Value		197	133
(-) Net Debt		-10	-10
Equity Value		207	143
(/) Outstanding shares		3	3
Fair Price		$74	$51

Selected Fair Value (avg of trailing + forward)

$62.88

-9.6%

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

$4.66 – $49.60

$18.63

-73.2%

Revenue DCF 10Y

$0.34 – $26.32

$8.39

-87.9%

▸ Trading Multiples

EV/Revenue

$22.81 – $358.24

$62.88

-9.6%

DCF Analysis

Sol-Gel Technologies Ltd. (SLGL) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$8.39

Market Price

$69.54

Upside / Downside

-87.9%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-39.2%

Target Operating Margin

13.2%

WACC

8.6%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

2.8%

Target CapEx/Rev

12.6%

D&A/Revenue

8.4%

Tax Rate

0.0%

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	5	-72.7%	-28.7%	-2	-2	0	(0)	2	-3	-3
2027	17	222.6%	-18.2%	-3	-3	1	(1)	7	-9	-8
2028	38	123.4%	-7.8%	-3	-3	3	(2)	12	-14	-11
2029	34	-10.0%	2.7%	1	1	3	(2)	-2	4	3
2030	31	-10.0%	13.2%	4	4	3	(2)	-2	6	4
2031	28	-8.9%	13.2%	4	4	2	(2)	-2	5	3
2032	26	-6.5%	13.2%	3	3	2	(3)	-1	4	2
2033	25	-4.1%	13.2%	3	3	2	(3)	-1	3	2
2034	25	-1.8%	13.2%	3	3	2	(3)	-0	3	1
2035	25	0.6%	13.2%	3	3	2	(3)	0	2	1

Enterprise Value Bridge

Sum of PV(FCFF)-5

Terminal Value (Gordon Growth at 3.0%)40

PV of Terminal Value18

Enterprise Value13

(–) Net Debt-10

Equity Value23

(÷) Shares Outstanding3

Fair Value per Share$8.39

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.6%	$3	$9	$15	$20	$26
7.6%	$2	$6	$11	$15	$20
8.6%	$1	$5	$8	$12	$16
9.6%	$0	$4	$7	$10	$13
10.6%	$0	$3	$6	$8	$11

Current price: $69.54. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 55.5% 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

$62.88

Market Price

$69.54

Upside / Downside

-9.6%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Sol-Gel Technologies Ltd. (SLGL) has a fair value of $62.88 based on 6 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
Sol-Gel Technologies Ltd.SLGL	194	9.5x	13.8x
Ovid Therapeutics Inc.OVID	369	51.0x	—
Zentalis Pharmaceuticals, Inc.ZNTL	300	4.6x	144.1x
MacroGenics, Inc.MGNX	191	1.6x	2.2x
Oramed Pharmaceuticals Inc.ORMP	165	60.2x	178.5x
Pliant Therapeutics, Inc.PLRX	77	15.8x	10.0x
Coya Therapeutics, Inc.COYA	69	2.8x	10.0x
Industry Median		10.2x	10.0x
(*) Revenue		19	13
= Enterprise Value		197	133
(-) Net Debt		-10	-10
Equity Value		207	143
(/) Outstanding shares		3	3
Fair Price		$74	$51

Selected Fair Value (avg of trailing + forward)

$62.88

-9.6%