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Relay Therapeutics Inc

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Relay Therapeutics Inc AI Insights

Informational only. Not investment advice.
As of 2026-01-20

Snapshot

  • Cash burn of 248.9M TTM vs 91.6M cash on hand = ~4 months runway without financing. 591M working capital provides buffer but depleting fast.[Free Cash Flow TTM]
  • R&D spend of 274M TTM is 33x revenue (8.4M) - pure clinical-stage bet with no commercial validation yet.[Research and Development TTM]
  • P/S of 153x vs industry median 2.6x reflects binary outcome pricing - market paying for pipeline optionality, not fundamentals.[P/S Ratio]

Watch Triggers

  • Cash and Equivalents: Falls below 150M or 6 months burnTriggers forced financing at potentially unfavorable terms; watch for dilutive equity raises
  • Total Revenue TTM: Exceeds 50M (milestone/partnership)Any meaningful revenue signals partnership validation or clinical progress
  • Research and Development TTM: Drops >20% without revenue offsetR&D cuts without revenue = pipeline deprioritization; bearish signal

Bull Case

Clean balance sheet (5.5% debt/equity, zero goodwill) with 607.7M tangible book provides asset floor at ~$3.53/share vs current ~$7.41 implied.

Debt to EquityTangible Book ValueBook Value Per Share

591M working capital and minimal capex (409K TTM) means R&D-focused burn with flexibility to extend runway via asset sales or partnerships.

Working CapitalCapital Expenditure TTMCurrent Assets

Bear Case

At current burn (-248.9M/yr), entire 624M current assets depleted in ~2.5 years with zero revenue growth - dilution mathematically certain.

Free Cash Flow TTMCurrent AssetsTotal Revenue TTM

153x P/S implies blockbuster drug success; any clinical setback reprices to tangible book (52% downside to $3.53/share).

P/S RatioBook Value Per ShareMarket Cap TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
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Forward Thesis

Equity dilution or debt raise likely within 12 months given cash burn trajectory

3-12mhigh
  • 248.9M annual FCF burn rate
  • 91.6M cash vs 274M annual R&D spend
  • Zero capital stock issuance recently
FCF TTM: -248.9MCash: 91.6MWorking capital: 591M (liquid assets)

Clinical readouts will drive 50%+ price swings given binary risk profile

1-3ymed
  • 153x P/S implies pipeline success priced in
  • Minimal revenue (8.4M) provides no downside cushion
  • 2.1x P/B suggests modest asset floor
P/S: 153x vs 2.6x medianP/B: 2.1xTangible book: 607.7M

Valuation Context

Caveats

Data Partners
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Fundamental company data provided by Morningstar, updated daily.

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