CRISPR Therapeutics earnings spark fresh interest in the stock

CRISPR Therapeutics (NasdaqGM:CRSP) is back in focus after reporting second quarter 2026 results on 3 August, with higher revenue of US$10.18 million and a reduced net loss of US$91.15 million.

CRISPR Therapeutics’ latest earnings have arrived alongside a sharp 1 day share price return of 3.64% and a 7 day share price return of 11.52%. However, the 1 month share price return is down 9.59% and the 1 year total shareholder return is down 2.69%. Taken together, these figures suggest that short term momentum has picked up while longer term performance remains mixed.

If you are watching CRISPR Therapeutics after these results and want to see what else is moving in related areas, it could be a useful time to scan 42 healthcare AI stocks.

CRISPR Therapeutics is drawing fresh attention after the earnings shift and short term share price rebound. The bigger question now is whether this story of promise is already reflected in today’s valuation.

DCF valuation suggests CRISPR Therapeutics may be deeply discounted

The SWS DCF model estimates a fair value for CRISPR Therapeutics of $218.96 per share, compared with the recent closing price of $53.52. On this basis, the stock is trading at a large discount to that cash flow based estimate.

The DCF approach projects CRISPR Therapeutics’ future cash flows, then discounts those back to today using a required rate of return. It focuses on the cash the business is expected to generate rather than reported accounting earnings, which can be more volatile for a company that is still loss making.

For a gene editing company like CRISPR Therapeutics, where current revenue of $13.39 million sits alongside a reported net loss of $451.14 million, a cash flow based framework can be useful. It allows investors to weigh the potential of programs such as CASGEVY and the broader pipeline against the time and funding needed before those projects might translate into positive cash generation.

Result: DCF Fair value of $218.96 (UNDERVALUED)

However, there are clear risks for CRISPR Therapeutics, including the company’s large reported net loss as well as the possibility of clinical or regulatory setbacks in its pipeline.

CRISPR Therapeutics valuation looks different through a multiples lens

While the SWS DCF model points to a large discount for CRISPR Therapeutics, the picture is not as clear if you look at its P/B ratio. The stock trades around 3x book value, which is higher than the US Biotechs average of 2.5x but below a peer average of 9.3x.

This higher P/B ratio than the broader industry suggests the market is already paying up compared with typical biotech stocks, even if it still sits well under closer peers. That mix of apparent upside on one measure and a premium on another raises a simple question: Which reference point do you trust more for CRISPR Therapeutics right now?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out CRISPR Therapeutics for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With mixed signals around CRISPR Therapeutics, it can be useful to act promptly and evaluate the information independently using the same data. To understand what investors currently view as the potential rewards, review the 2 key rewards

Looking for more investment ideas beyond CRISPR Therapeutics?

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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.