A Look at Exact Sciences (EXAS) Valuation Following Exclusive Rights to Freenome’s Cancer Screening Portfolio

Exact Sciences (EXAS) caught investor attention this week as it secured exclusive U.S. rights to Freenome’s blood-based colorectal cancer screening tests. This move expands its reach in non-invasive cancer diagnostics, pending FDA approval.

See our latest analysis for Exact Sciences.

Momentum has been picking up for Exact Sciences, with enthusiasm building as the company locked in the Freenome deal and delivered upbeat earnings and guidance. The last 90 days alone saw a striking 47% share price return, while its total shareholder return over the past year stands at 36%. This points to renewed confidence in its growth story, even as five-year total returns remain in the red.

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With shares up sharply on major product breakthroughs and exclusive new test rights, the key question for investors now is whether Exact Sciences remains undervalued or if the current price fully reflects future growth potential.

Most Popular Narrative: 4.6% Undervalued

The fair value set by the most followed narrative is $70.25, a modest premium over Exact Sciences' last close of $67.03. This difference drives debate over whether momentum or fundamentals are leading the current share price trend.

The ongoing demographic shift toward an aging population, coupled with Exact Sciences' broader early detection portfolio (Cologuard Plus, blood-based screening via Freenome, and the upcoming MCED test CancerGuard), is expected to expand the addressable market significantly and position the company to capture future volume-driven revenue growth as cancer incidence increases.

Read the complete narrative.

Want to know why this fair value sits above the last close? The growth forecast hinges on a game-changing demand curve and a pivotal margin turnaround. Explore what bold projections and crucial improvements could be influencing this market-defining price target. The assumptions might surprise you.

Result: Fair Value of $70.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Exact Sciences faces execution risks with new launches as well as persistent challenges in blood-based screening that could dampen the optimistic growth narrative.

Find out about the key risks to this Exact Sciences narrative.

Build Your Own Exact Sciences Narrative

If you have a different perspective or want to dig deeper into the numbers, you can easily craft your own narrative in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Exact Sciences.

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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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