CRISPR Therapeutics (CRSP): Evaluating Valuation After Casgevy Sales Surge and Pipeline Innovation

CRISPR Therapeutics (CRSP) just gave investors plenty to talk about. Shares have surged in recent months, fueled by a powerful combination of positive trial news from the in-vivo candidate CTX310 and a dramatic 114% jump in Q2 Casgevy sales. With Casgevy now approved for both sickle cell disease and transfusion-dependent beta-thalassemia, these latest updates are clear signals that market adoption is gaining real traction. The product pipeline is also expanding in unexpected new directions, particularly through the collaboration with Sirius Therapeutics on advanced RNA programs.

This momentum has a foundation in recent developments. While the stock is up over 41% in the past three months, longer-term returns paint a more complex picture, with the past year showing a more restrained gain. Setbacks and volatility have shaped the ride for investors over the past few years, but the recent performance suggests renewed confidence as both sales and pipeline prospects accelerate. The company’s rapid revenue and net income growth stand out and will be key factors for any valuation discussion.

The big question for investors now, after this breakout stretch, is whether the market is leaving more upside on the table or if future growth is already getting priced in by these latest moves.

Price-to-Book Ratio of 2.9x: Is it justified?

Based on the current Price-to-Book Ratio of 2.9x, CRISPR Therapeutics appears undervalued compared to its peer group average of 4.8x, but slightly expensive relative to the US Biotechs industry average of 2.2x.

The Price-to-Book Ratio is a key valuation multiple in the biotech sector, particularly for companies that are not yet profitable. This metric compares a company’s market price to its book value, offering insight into how the market values its net assets. It is especially relevant for innovative firms like CRISPR Therapeutics, where traditional metrics such as price-to-earnings may not be meaningful, since the company is not yet profitable.

While CRISPR Therapeutics is considered good value when compared to similar peers, it trades at a premium to the broader industry. This suggests investors may be factoring in its revenue growth forecasts and unique positioning in gene-editing therapies. At the same time, they remain mindful of the risks associated with unprofitability and the company’s funding structure, which carries higher risk.

Result: Fair Value of $150.97 (UNDERVALUED)

See our latest analysis for CRISPR Therapeutics.

However, slower revenue growth or setbacks in future clinical trials could quickly undermine the recent optimism and place significant pressure on the stock’s momentum.

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

Another View: SWS DCF Model Offers a Different Perspective

While the book value approach points to CRISPR Therapeutics being undervalued, our DCF model also sees room for upside. However, the question remains whether the market truly believes in the company's longer-term cash flow prospects, or if there is more uncertainty ahead.

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 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 see things differently or want to dig into the details for yourself, you can put together your own take 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.

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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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