Are Intellia Therapeutics Shares Worth a Closer Look After Surging 114% This Month?

Thinking about what to do with your Intellia Therapeutics shares? You are not alone. This is one of those stocks that can test your patience as easily as it rewards your optimism. Just look at the price chart: up 24.6% in the past week, a staggering 114.3% over the last month, and 108.3% year to date. Even with that turnaround, the stock is still up only 5.0% over the last five years, and for anyone who has held since 2021, they have ridden through a tough 53.8% drop over the past three years. These wild swings have often tracked the biotech market’s appetite for next-gen gene editing, as well as broader enthusiasm following regulatory shifts and scientific milestones announced across the industry.

But what does all this mean for valuation? By standard metrics, Intellia’s value score is 1 out of 6, indicating the company is only considered undervalued in one out of a possible six ways. That is hardly the sign of a hidden bargain, at least on paper, especially after such a rapid run-up. Still, traditional measures do not always tell the full story, and sometimes the market starts to see new potential long before the textbooks catch up. Let’s break down the usual valuation methods and then explore one approach savvy investors use to get a clearer picture of what Intellia Therapeutics is really worth.

Intellia Therapeutics scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.

Approach 1: Intellia Therapeutics Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting future free cash flows and then discounting them back to today’s value. This method relies on long-range forecasts of how much cash the business can generate, adjusted to reflect the time value of money and investment risks.

For Intellia Therapeutics, the DCF analysis uses a 2 Stage Free Cash Flow to Equity approach. Currently, the company is not generating positive cash flow, reporting a last twelve months Free Cash Flow (FCF) of -$428.6 Million. Analyst estimates suggest Intellia will remain cash flow negative for several years, with projections improving from -$343.5 Million in 2026 to a positive $25.4 Million in 2029. Beyond that, further growth in FCF is extrapolated, reaching $93.2 Million by 2035 based on sector estimates and company trends.

After discounting all these future cash flows, the estimated intrinsic value comes out to $8.41 per share. In comparison to the current share price, this indicates Intellia Therapeutics is trading at a 202.6% premium to its calculated fair value. In simple terms, the market price is significantly higher than what the DCF model suggests is reasonable.

Result: OVERVALUED

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

Our Discounted Cash Flow (DCF) analysis suggests Intellia Therapeutics may be overvalued by 202.6%. Find undervalued stocks or create your own screener to find better value opportunities.

Approach 2: Intellia Therapeutics Price vs Book (P/B)

The price-to-book (P/B) ratio is especially useful for evaluating biotech companies like Intellia Therapeutics, where current profits can be elusive. The company’s net assets remain a solid foundation for valuation. For firms at the early stage of commercialization or those relying heavily on R&D, book value gives investors a concrete sense of what the business is worth if all assets were sold off, and so is often a preferred benchmark when earnings are negative.

Growth prospects and risk appetite play a significant role in what the market considers a “fair” P/B multiple. Higher P/B ratios are often accepted for companies with strong pipelines and the potential for outsized growth. Uncertainty or high burn rates can justify lower ratios. Benchmarks help set expectations: Intellia currently trades at a P/B of 3.82x compared to an industry average of 2.56x and a peer average of 5.23x. On the surface, this puts Intellia above the broader biotech sector, but still below its closest peers.

Simply Wall St’s proprietary Fair Ratio goes further than these simple averages; it adjusts for Intellia’s unique characteristics, such as future growth, margin outlook, market dynamics, and risk profile. This makes it a more nuanced tool, as it doesn’t just look at what similar companies are worth, but truly tailors expectations to Intellia’s prospects and challenges.

Since the difference between Intellia’s actual P/B of 3.82x and its Fair Ratio is not provided, but peer and industry averages signal a middling position, the valuation by this method appears to be about right. This aligns reasonably with expectations for a high-potential, high-risk biotech in today’s market.

Result: ABOUT RIGHT

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

Upgrade Your Decision Making: Choose your Intellia Therapeutics Narrative

Earlier, we hinted at a smarter way to cut through the noise and make investing decisions with more confidence, so let’s introduce the concept of Narratives. A Narrative is simply the story you (or any investor) believe about a company’s future. It connects your unique perspective on Intellia Therapeutics with detailed expectations for revenue, earnings, and margins, which in turn shape your estimate of what the company is actually worth.

Unlike rigid metrics, Narratives let you link Intellia’s business developments, clinical trial progress, and market trends to a financial forecast, making your investment reasoning transparent and actionable. On Simply Wall St’s Community page, millions of users can easily create, share, and update Narratives as new earnings, news, or industry shifts occur. This helps ensure your Fair Value estimate stays relevant, not static. By comparing your Narrative Fair Value to the current share price, you can decide if it’s time to buy, hold, or sell, using your conviction and reasoning, not just consensus numbers.

For example, in the Community Narratives for Intellia Therapeutics, some investors with a bullish outlook project long-term commercialization success and set Fair Values as high as $106 per share, while more cautious contributors, concerned about pipeline concentration and cash burn, arrive at Fair Values as low as $7. This demonstrates how Narratives put you in control, letting your own story and your numbers drive smarter investing choices.

Do you think there's more to the story for Intellia Therapeutics? Create your own Narrative to let the Community know!

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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