Recent move in Celldex Therapeutics

Celldex Therapeutics (CLDX) has been on many watchlists after recent trading, with the stock closing at US$25.17. Short term and longer term returns have moved in different directions, prompting closer attention from investors.

The recent 1 day share price return of 2.07% comes after a weaker run over the past month, with a 30 day share price return of 6.81% and a year to date share price return of 6.81%. The 1 year total shareholder return of 8.73% contrasts with a 3 year total shareholder return of 45.16%, suggesting near term momentum has picked up after a more mixed longer term record.

If this kind of rebound has your attention, it can be a good moment to compare other names in the same space using our screen of healthcare stocks.

With Celldex reporting annual revenue of US$2.599 million alongside a loss of US$224.532 million, and models pointing to an intrinsic value above the current US$25.17 share price, is this a buying opportunity or is the market already pricing in future growth?

Preferred multiple of Price-to-Book: Is it justified?

Celldex trades at a P/B of 2.8x, which sits below its selected peer average of 5.4x but just above the broader US biotech average of 2.7x.

The P/B ratio compares the company’s market value to its book value. This can be a useful yardstick for early stage biopharma names that have limited revenue and are still loss making. For Celldex, this lens is particularly relevant because the company reported revenue of $2.599 million alongside a loss of $224.532 million and does not yet have meaningful earnings to support metrics like P/E.

Relative to peers at 5.4x, a 2.8x P/B suggests the market is assigning a lower valuation to Celldex than to that comparison group. Our SWS DCF model points to a fair value of $82.65 versus the current $25.17 share price. Against the US biotech industry average of 2.7x, however, Celldex is slightly more expensive on P/B, indicating that investors may already be factoring in some company specific expectations that are not fully reflected in the broader group.

Result: Price-to-Book of 2.8x (ABOUT RIGHT)

However, the company’s US$224.532 million loss and its history of a 45.16% three-year total shareholder return decline mean that clinical or funding setbacks could quickly challenge the current valuation narrative.

Another view on value

Our SWS DCF model suggests Celldex could be worth around $82.65 per share, compared with the current $25.17 price. This implies a large gap between the market price and the modelled fair value. Is this a genuine opportunity, or simply a reflection of long-term execution risk?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Celldex 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 873 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Celldex Therapeutics Narrative

If you see the numbers differently or prefer to test your own assumptions, you can build a custom view in just a few minutes by starting with Do it your way.

A great starting point for your Celldex Therapeutics research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If Celldex has you thinking about what else could be worth a closer look, do not stop here; broaden your watchlist with other focused stock ideas.

• Target potential mispricings by scanning these 873 undervalued stocks based on cash flows, which is built around cash flow based opportunities that might not be front and center in the market.
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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.