Has The Recent ImmunityBio Share Price Rebound Created An Opportunity In 2025?

• Wondering if ImmunityBio at around $2.36 is a speculative trap or a misunderstood bargain? You are not alone, and that is exactly what this breakdown is here to unpack.
• Despite a bruising longer term record, with the share price down about 17.8% over the last year and 63.4% over three years, the stock has shown signs of life recently, gaining roughly 3.1% in the past week and 14.6% over the last month, while still sitting 8.2% lower year to date.
• Those moves have come as investors continue to weigh ImmunityBio's clinical pipeline and regulatory milestones against its funding needs and execution risks. Each development has shifted sentiment between cautious optimism and skepticism. Broader interest in small cap biotech and shifting risk appetite in the sector have also amplified volatility, making it harder to tell whether the latest bounce is the start of a re rating or just another head fake.
• On our valuation framework, ImmunityBio currently scores 3 out of 6 for being undervalued. This suggests some metrics are flashing green while others are more ambiguous. In the sections that follow, we will walk through those different valuation lenses before finishing with a more intuitive way to think about what the market might really be pricing in.

Find out why ImmunityBio's -17.8% return over the last year is lagging behind its peers.

Approach 1: ImmunityBio Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow model estimates what a business is worth by projecting its future cash flows and discounting them back to today’s value. For ImmunityBio, the 2 Stage Free Cash Flow to Equity model starts with the company’s latest twelve month Free Cash Flow of about $374 million outflow, reflecting heavy investment and ongoing losses.

Analysts expect cash burn to narrow and eventually turn positive, with Simply Wall St extrapolating those projections beyond the explicit analyst horizon. Under this framework, Free Cash Flow is expected to move into positive territory and reach roughly $472 million by 2035. These improving cash flows, when discounted back to today, yield an estimated intrinsic value of about $6.31 per share.

Set against the current share price of roughly $2.36, the DCF suggests ImmunityBio is trading at about a 62.6% discount to its modeled fair value, which indicates that the market is heavily discounting execution, funding, and approval risks.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests ImmunityBio is undervalued by 62.6%. Track this in your watchlist or portfolio, or discover 907 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 ImmunityBio.

Approach 2: ImmunityBio Price vs Sales

For profitable companies, valuation often comes back to how much investors are willing to pay for each dollar of revenue, which is what the Price to Sales multiple captures. Higher growth and lower perceived risk usually justify a higher sales multiple, while slower growth or higher risk call for a lower, more conservative figure.

ImmunityBio currently trades on a Price to Sales ratio of about 28.16x, which is more than double both the Biotechs industry average of around 12.08x and the peer group average of roughly 16.74x. On the surface, that makes the stock look expensive relative to its sector and comparable names.

Simply Wall St’s Fair Ratio framework goes a step further by estimating what a reasonable Price to Sales multiple should be, given ImmunityBio’s growth outlook, risk profile, profit margins, industry positioning, and market cap. On this basis, ImmunityBio’s Fair Ratio is estimated at about 32.06x. This implies that, once these company specific factors are accounted for, the market is actually pricing the stock below its modeled fair multiple.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1448 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your ImmunityBio Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect the story you believe about a company with what you think its numbers should look like. A Narrative lets you spell out your view of ImmunityBio’s future revenue, earnings and margins, and then links that story directly to a financial forecast and an estimated fair value. On Simply Wall St’s Community page, used by millions of investors, Narratives are an easy and accessible tool that show you whether your Fair Value suggests ImmunityBio is a buy or a sell compared to today’s share price. They are updated dynamically as new information, such as trial results, funding news or earnings, comes in so that your investment view stays current rather than static. For example, one ImmunityBio Narrative might assume rapid approval and strong adoption, leading to a far higher fair value. Another could assume delays and more dilution, resulting in a much lower fair value and a very different decision.

Do you think there's more to the story for ImmunityBio? 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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