Vaxcyte (PCVX): Assessing Valuation After Strong VAX-24 Data, Pipeline Advances, and New Manufacturing Partnership

Vaxcyte (PCVX) just wrapped up a busy week, announcing upbeat final results from its VAX-24 infant Phase 2 trial, key pipeline milestones, a major manufacturing deal, and a new commercial leadership hire.

See our latest analysis for Vaxcyte.

Vaxcyte’s share price has been on a rollercoaster this year, with recent momentum picking up after the strong VAX-24 trial data and major new manufacturing deal. Despite a tough year-to-date share price return of -49.9% and a one-year total shareholder return of -59.4%, the stock has bounced nearly 40% over the past 90 days, signaling renewed optimism as investors digest the latest pipeline and partnership news.

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With industry optimism building and Vaxcyte trading far below analyst price targets, the real question is whether market weakness presents a rare entry point or if all the good news is already reflected in the stock.

Price-to-Book of 1.9x: Is It Justified?

At a last close price of $41.71, Vaxcyte trades on a price-to-book (PB) ratio of 1.9x, notably lower than both its biotech industry peers and the broader peer average. Despite significant share price volatility, this valuation metric suggests the market may be assigning a discount to the company’s book value.

The price-to-book ratio measures a company's market value relative to its book value. For unprofitable biotech companies like Vaxcyte, this multiple is often used to provide a baseline for valuation when profits are negative or absent, as traditional earnings-based multiples are less meaningful. A low PB can indicate undervaluation or reflect investor skepticism about the ability to convert assets into future profits.

Vaxcyte’s PB ratio of 1.9x is below the US Biotechs industry average of 2.4x and well below the peer group average of 6.1x. This discount signals that the market sees either above-average risks or has yet to price in the long-term commercial potential of the pipeline. If the company makes clear progress toward profitability or meaningful revenue, the PB multiple could move significantly higher.

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

Result: Price-to-Book of 1.9x (UNDERVALUED)

However, key risks remain, including Vaxcyte’s lack of revenue and ongoing net losses, which could weigh on investor confidence if commercial progress stalls.

Find out about the key risks to this Vaxcyte narrative.

Build Your Own Vaxcyte Narrative

If you have a different perspective or want to dig through the numbers on your own terms, putting together your personal take is quick and easy. Do it your way

A great starting point for your Vaxcyte research is our analysis highlighting 1 key reward and 2 important warning signs 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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