Is Genmab’s 32.5% Rally in 2025 Justified After Recent Pipeline Progress?

• Curious if Genmab is a bargain right now? Let’s dive into what might make this innovative biotech stock an appealing buy, or a candidate for caution.
• After an impressive 32.5% rally year-to-date and a 34.3% jump over the last 12 months, Genmab’s stock has been firmly in the spotlight, suggesting renewed investor optimism.
• Several partnership announcements and drug development milestones have fueled Genmab’s price momentum recently, with news flow focused on promising pipeline progress and strategic collaborations. This kind of buzz is giving investors plenty to discuss, both in terms of optimism and risk.
• On our 6-point valuation check, Genmab scores a solid 5 out of 6 for being undervalued. Let’s break down what those checks really mean, before introducing another way to judge value toward the end of this article.

Genmab delivered 34.3% returns over the last year. See how this stacks up to the rest of the Biotechs industry.

Approach 1: Genmab Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model examines a company’s value by projecting its future cash flows and discounting them back to present value. This method helps estimate what Genmab should be worth based on the money it is expected to generate for shareholders, while accounting for the fact that money available in the future is generally less valuable than money available today.

Genmab’s most recent Free Cash Flow was $1.30 billion, and analysts forecast solid growth for the coming years. For example, projections show Free Cash Flow reaching $2.31 billion in 2029. The initial five years of the forecast are based on analyst estimates, while the following five years use trend-based extrapolation to extend the outlook up to 2035, providing a complete 10-year perspective.

Based on these projections and using the DCF methodology, Genmab’s estimated intrinsic value is $5,623 per share. This represents a 63.9% discount compared to its current trading price, indicating that the stock may be undervalued according to this model.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Genmab is undervalued by 63.9%. Track this in your watchlist or portfolio, or discover 928 more undervalued stocks based on cash flows.

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Genmab.

Approach 2: Genmab Price vs Earnings

When analyzing profitable companies like Genmab, the Price-to-Earnings (PE) ratio is a widely accepted and meaningful valuation metric. This is because the PE ratio helps investors gauge how much they are paying today for each unit of current earnings, making it especially relevant for companies with established profitability.

However, the right PE ratio can vary depending on factors such as future growth expectations and the risks the company faces. Companies with stronger growth prospects or lower business risk can often sustain higher PE ratios, while those with weaker outlooks or higher uncertainty tend to command lower multiples.

Currently, Genmab trades at a PE of 12.25x. For context, this is not only below the biotech sector average of 28.40x, but also under the average for its peer group, which sits at 17.42x. These benchmarks suggest Genmab is trading at a relative discount on an earnings basis compared to its industry and closest competitors.

Simply Wall St’s proprietary “Fair Ratio” takes this comparison a step further. It estimates that, considering Genmab’s earnings growth outlook, profit margin, market cap, risks, and its industry profile, a fair PE ratio for the stock would be 18.76x. Unlike standard peer or industry comparison, the Fair Ratio tailors its assessment specifically to Genmab’s unique attributes, providing a more nuanced and accurate valuation benchmark.

Comparing Genmab’s actual PE of 12.25x to its Fair Ratio of 18.76x suggests the stock is attractively valued, as it is trading well below what would be expected given its earnings and fundamentals.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1440 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Genmab Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your story or investment thesis about Genmab, a way to express your expectations for the company’s future revenues, earnings, and profit margins, and to connect those assumptions to an estimated fair value for the stock. Narratives turn the numbers into something more personal and practical by linking the company’s story to a forecast and a valuation anchor. On Simply Wall St’s platform, Narratives are an easy, accessible tool available within the Community page, used by millions of investors worldwide.

By building and exploring Narratives, you can compare your own fair value for Genmab to its current share price to help decide when to buy or sell. Because Narratives update dynamically as new information (like clinical results or earnings) comes in, your investment view stays current. For example, some investors believe Genmab’s innovation and global expansion justify a fair value above DKK2,650, seeing upside if new product launches succeed. Others are cautious, citing execution or competition risks, and estimate fair value as low as DKK1,000. Narratives make it easy for you to visualize and act on these perspectives with confidence.

Do you think there's more to the story for Genmab? Head over to our Community to see what others are saying!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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