CRISPR Therapeutics (CRSP): Assessing Valuation Following Promising Early CTX310 Cardiovascular Trial Results

CRISPR Therapeutics (NasdaqGM:CRSP) drew investor attention after unveiling early data from its Phase 1 CTX310 trial. The results revealed strong, lasting reductions in cardiovascular risk factors and a safety profile that supports ongoing development.

See our latest analysis for CRISPR Therapeutics.

Despite the buzz around CRISPR Therapeutics’ positive CTX310 trial results and solid progress in its gene-editing pipeline, the share price has pulled back sharply this month, down 23.6% in the past 30 days and 8.4% over the week, reflecting shifting risk sentiment. Still, the 25.97% year-to-date share price return hints that momentum has not vanished entirely, even if the one-year total shareholder return of 4.8% shows that longer-term gains have been modest as investors weigh both breakthroughs and ongoing clinical risks.

If you are watching gene-editing breakthroughs shape the sector, this could be a smart moment to explore other healthcare stocks on our discovery list. See the full lineup with See the full list for free.

With the stock trading well below analyst price targets and coming off a strong run earlier in the year, investors have to wonder if CRISPR Therapeutics is undervalued after recent volatility or if the market is already pricing in future breakthroughs.

Price-to-Book Ratio of 2.6x: Is it justified?

CRISPR Therapeutics is currently trading at a price-to-book ratio of 2.6x, which places it directly in line with the US Biotechs industry average. At a last close price of $52.19, this metric provides a reference point for investors deciding if the stock is reasonably valued compared to its sector peers.

The price-to-book ratio measures how much investors are willing to pay for each dollar of net assets, making it especially relevant for biotech companies that may not be profitable but hold significant intangible value tied to research and development.

In this specific case, CRISPR's 2.6x price-to-book suggests the market values the company on par with its biotech industry counterparts, neither underestimating nor overestimating its current growth path, research assets, or future cash flow potential. Notably, while this matches the broad industry standard, CRISPR stands out as good value compared to its peer average, which sits higher at 5.2x. This relative discount hints the market may not be crediting enough for its R&D pipeline risk or upcoming clinical milestones.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book Ratio of 2.6x (ABOUT RIGHT)

However, clinical setbacks or competition in gene-editing could quickly change sentiment, reminding investors that breakthrough potential always comes with significant risks.

Find out about the key risks to this CRISPR Therapeutics narrative.

Another View: Deep Discount Versus Market Perception

Taking a different perspective, our DCF model estimates CRISPR Therapeutics’ fair value at $128.11 per share, nearly two and a half times its current price of $52.19. This big gap highlights how the market may be overlooking future growth. However, is the discount justified or is it simply a sign of skepticism?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CRISPR Therapeutics for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 865 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own CRISPR Therapeutics Narrative

If you think there’s more to this story or want to see where your own analysis leads, you can easily create your own view in just a few minutes. Do it your way

A great starting point for your CRISPR Therapeutics research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for More Investment Ideas?

Smart investors never stop hunting for their next big win. Don’t let your portfolio miss out on tomorrow’s leaders, hidden values, or unstoppable trends.

• Tap into AI-powered innovation by targeting growth potential among these 25 AI penny stocks, which are rapidly transforming industries with new breakthroughs and technologies.
• Secure reliable income streams and beat low savings rates by choosing from these 14 dividend stocks with yields > 3%, offering strong yields and proven financial discipline.
• Gain an edge on Wall Street by uncovering market bargains via these 865 undervalued stocks based on cash flows, where companies trade below their intrinsic value based on cash flows.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com