Ginkgo Bioworks (DNA): Assessing Valuation Following Major ARPA-H-Backed Phage Therapy Collaboration

Ginkgo Bioworks (NYSE:DNA) just unveiled a strategic partnership with the University of Illinois Urbana-Champaign's Institute for Genomic Biology, launching a five-year research effort funded by ARPA-H. This move could broaden Ginkgo's reach in phage therapy innovation.

See our latest analysis for Ginkgo Bioworks Holdings.

The recent rally in Ginkgo Bioworks’ total shareholder return, a strong 24% gain over the past year, stands out, especially as the share price has struggled in 2025. While the latest earnings highlighted persistent challenges, momentum from the ARPA-H partnership hints at renewed optimism as Ginkgo pivots toward innovation.

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With shares still trading at a considerable discount to analyst price targets despite mixed financials and headline-grabbing partnerships, the question for investors remains: Is there untapped value here, or are expectations already baked in?

Most Popular Narrative: 34% Undervalued

With a most-followed narrative fair value of $12, Ginkgo Bioworks shares are trading well below this mark, currently closing at $7.91. Such a valuation gap points to a bullish outlook among analysts, especially as new partnerships and cost initiatives come into focus.

Ginkgo's successful transition from a high-customization R&D solutions provider to a scalable life science tools and automation platform, along with early traction with academic and commercial customers, positions it to capitalize on increasing demand for automation and AI-enabled bioengineering. This supports revenue growth and expands its total addressable market.

Read the complete narrative.

Want to know the growth blueprint behind this high valuation? The key element of this narrative centers on bold profit margin expansion and a significantly higher multiple than the sector average. Interested in which financial projections drive this price target? Explore further to see the main factor supporting these estimates.

Result: Fair Value of $12 (UNDERVALUED)

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

However, persistent challenges in sector adoption and ongoing regulatory uncertainty could still weigh heavily on Ginkgo Bioworks’ long-term growth outlook.

Find out about the key risks to this Ginkgo Bioworks Holdings narrative.

Build Your Own Ginkgo Bioworks Holdings Narrative

If you see the numbers differently or want to chart your own path, you can dive into the data and craft your own perspective in just a few minutes. Do it your way

A great starting point for your Ginkgo Bioworks Holdings research is our analysis highlighting 2 key rewards and 3 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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