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This article evaluates whether ImmunityBio’s current share price reflects its true value.
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The stock recently closed at $6.56, delivering returns of 3.6% over the past week, 181.5% over the last month, 224.8% year-to-date, and 106.9% over the past year. These returns prompt examination of how the recent share price corresponds to its underlying value.
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Strong fluctuations in ImmunityBio’s stock have drawn attention from investors, with recent news influencing perceptions of its future prospects and risk profile. Context plays a crucial role, as significant price changes can denote shifts in sentiment as much as in fundamentals.
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According to valuation assessments from Simply Wall St, ImmunityBio currently possesses a value score of 2 out of 6. We will delve into what various valuation methods reveal about this rating before concluding with a holistic approach to assessing value beyond any single model.
ImmunityBio scores a mere 2/6 on our valuation measures. Check out the complete valuation breakdown for more insights.
The Discounted Cash Flow (DCF) model estimates a business’s potential worth by projecting its future cash flows and then discounting them back to their present value using a specified required rate of return.
For ImmunityBio, the latest twelve months Free Cash Flow shows a loss of $373.9 million. Analysts forecast specific Free Cash Flow estimates through to 2030, with projections shifting from a loss of $187.5 million in 2026 to a positive $632.4 million by 2030. Beyond this initial five-year horizon, Simply Wall St has extrapolated annual Free Cash Flow estimates up to 2035, all within a similar million-dollar range.
Utilizing these projections in a two-stage Free Cash Flow to Equity model yields an estimated intrinsic value of approximately $20.22 per share. In comparison to the current share price of $6.56, this DCF perspective suggests the shares are trading at a significant discount of 67.6% relative to the model’s intrinsic value estimate.
Conclusion: UNDERVALUED (according to this DCF model)
Our DCF analysis indicates that ImmunityBio is undervalued by 67.6%. You can monitor this on your watchlist or portfolio. Alternatively, explore 51 additional high-quality undervalued stocks.
In scenarios where book value serves as a reliable benchmark, the Price-to-Book (P/B) ratio is frequently employed to evaluate how much investors are paying for each dollar of net assets. This method tends to be most effective for companies where balance sheet assets are central to their valuation narrative, offering a quick perspective on market sentiment relative to accounting value.
