Sutro Biopharma, Inc.

STRO

HealthcareBiotechnologyNASDAQ

$39.83

Market Cap: $338.47M

Sutro Biopharma, Inc. (STRO) Valuation Summary

Updated May 9, 2026 01:19

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$0.33 – $16.17	$3.92	-90.2%
Revenue DCF 10Y	$0.01 – $22.91	$6.78	-83.0%
▸ Trading Multiples
EV/Revenue	$29.86 – $195.15	$31.14	-21.8%

Valuation History

DCF Analysis

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

REVENUE DCF FAIR VALUE

$6.78

Market Price

$39.83

Upside / Downside

-83.0%

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 8.8%, Sutro Biopharma, Inc. (STRO) has an intrinsic value of $6.78 per share (range: $0.01 – $22.91).

Key Assumptions

Current Operating Margin

-102.4%

Target Operating Margin

13.3%

WACC

8.8%

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	33	-67.8%	-79.3%	-26	-26	3	(3)	5	-32	-31
2027	21	-34.8%	-56.1%	-12	-12	2	(2)	-1	-12	-10
2028	38	78.0%	-33.0%	-13	-13	3	(4)	1	-14	-12
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)-38

Terminal Value (Gordon Growth at 3.0%)119

PV of Terminal Value53

Enterprise Value15

(–) Net Debt-42

Equity Value58

(÷) Shares Outstanding8

Fair Value per Share$6.78

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.8%	$1	$7	$12	$17	$23
7.8%	$0	$5	$9	$13	$17
8.8%	$0	$3	$7	$10	$14
9.8%	$-0	$3	$5	$8	$11
10.8%	$-0	$2	$4	$7	$9

Current price: $39.83. 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

$3.92

Market Price

$39.83

Upside / Downside

-90.2%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-102.4%

Target Operating Margin

13.3%

WACC

8.8%

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	33	-67.8%	-79.3%	-26	-26	3	(3)	5	-32	-31
2027	21	-34.8%	-56.1%	-12	-12	2	(2)	-1	-12	-11
2028	38	78.0%	-33.0%	-13	-13	3	(4)	1	-15	-12
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)-56

Terminal Value (Gordon Growth at 3.0%)69

PV of Terminal Value47

Enterprise Value-9

(–) Net Debt-42

Equity Value33

(÷) Shares Outstanding8

Fair Value per Share$3.92

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.8%	$-1	$3	$7	$12	$16
7.8%	$-2	$2	$5	$9	$12
8.8%	$-2	$1	$4	$7	$9
9.8%	$-2	$1	$3	$5	$8
10.8%	$-2	$0	$2	$4	$6

Current price: $39.83. 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

$31.14

Market Price

$39.83

Upside / Downside

-21.8%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Sutro Biopharma, Inc. (STRO) has a fair value of $31.14 based on 4 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	338	2.9x	9.0x
Connect Biopharma Holdings LimitedCNTB	133	2.1x	—
Precision BioSciences, Inc.DTIL	99	0.5x	0.8x
Pliant Therapeutics, Inc.PLRX	77	15.8x	10.0x
Metagenomi, Inc. Common StockMGX	53	2.1x	2.2x
Industry Median		2.1x	2.2x
(*) Revenue		102	33
= Enterprise Value		215	230
(-) Net Debt		-42	-42
Equity Value		257	272
(/) Outstanding shares		8	8
Fair Price		$30	$32

Selected Fair Value (avg of trailing + forward)

$31.14

-21.8%

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

$0.33 – $16.17

$3.92

-90.2%

Revenue DCF 10Y

$0.01 – $22.91

$6.78

-83.0%

▸ Trading Multiples

EV/Revenue

$29.86 – $195.15

$31.14

-21.8%

DCF Analysis

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

REVENUE DCF FAIR VALUE

$6.78

Market Price

$39.83

Upside / Downside

-83.0%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-102.4%

Target Operating Margin

13.3%

WACC

8.8%

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	33	-67.8%	-79.3%	-26	-26	3	(3)	5	-32	-31
2027	21	-34.8%	-56.1%	-12	-12	2	(2)	-1	-12	-10
2028	38	78.0%	-33.0%	-13	-13	3	(4)	1	-14	-12
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)-38

Terminal Value (Gordon Growth at 3.0%)119

PV of Terminal Value53

Enterprise Value15

(–) Net Debt-42

Equity Value58

(÷) Shares Outstanding8

Fair Value per Share$6.78

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.8%	$1	$7	$12	$17	$23
7.8%	$0	$5	$9	$13	$17
8.8%	$0	$3	$7	$10	$14
9.8%	$-0	$3	$5	$8	$11
10.8%	$-0	$2	$4	$7	$9

Current price: $39.83. 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

$31.14

Market Price

$39.83

Upside / Downside

-21.8%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Sutro Biopharma, Inc. (STRO) has a fair value of $31.14 based on 4 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	338	2.9x	9.0x
Connect Biopharma Holdings LimitedCNTB	133	2.1x	—
Precision BioSciences, Inc.DTIL	99	0.5x	0.8x
Pliant Therapeutics, Inc.PLRX	77	15.8x	10.0x
Metagenomi, Inc. Common StockMGX	53	2.1x	2.2x
Industry Median		2.1x	2.2x
(*) Revenue		102	33
= Enterprise Value		215	230
(-) Net Debt		-42	-42
Equity Value		257	272
(/) Outstanding shares		8	8
Fair Price		$30	$32

Selected Fair Value (avg of trailing + forward)

$31.14

-21.8%