• If you are wondering whether CRISPR Therapeutics' share price still makes sense after recent moves, this article focuses squarely on what the current valuation might be telling you.
• The stock last closed at US$53.51, with returns of a 0.6% decline over 7 days, a 2.2% decline over 30 days, a 0.5% decline year to date, a 32.0% gain over 1 year, 7.9% over 3 years, and a 71.6% decline over 5 years, which gives a mixed picture for investors thinking about entry or exit points.
• Recent news coverage around CRISPR Therapeutics has continued to focus on its gene editing platform, regulatory progress, and partnership updates, which often shapes how investors think about future revenue potential and risk. These headlines can help explain why the share price has seen strong 1 year returns alongside a much weaker 5 year track record.
• On Simply Wall St's 6 point valuation checklist, the company scores 3 out of 6 for being assessed as undervalued. Next, we will look at what different valuation methods say about that score, before finishing with a way to think about value that goes beyond the numbers alone.

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

A Discounted Cash Flow, or DCF, model estimates what a company might be worth today by projecting its future cash flows and then discounting those back to a present value.

For CRISPR Therapeutics, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is a loss of about US$306.7 million. Analysts provide detailed forecasts for the next few years, and then Simply Wall St extrapolates further out, with projected free cash flow of US$270.1 million in 2030. The ten year path includes years with projected cash outflows and later years with projected positive cash flows, all in US$ millions, which are then discounted back to today using the model’s assumptions.

Pulling all of those discounted cash flows together, the DCF output suggests an estimated intrinsic value of about US$201.16 per share. Compared with the recent share price of US$53.51, this model implies the stock is 73.4% undervalued.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests CRISPR Therapeutics is undervalued by 73.4%. Track this in your watchlist or portfolio, or discover 863 more undervalued stocks based on cash flows.

Approach 2: CRISPR Therapeutics Price vs Book

For companies that are not consistently profitable, price-based multiples tied to the balance sheet, such as Price to Book, are often more helpful than earnings-based metrics. They anchor the valuation to the net assets backing the business instead of volatile or negative earnings.

In general, higher growth expectations and lower perceived risk can support a higher “normal” or “fair” multiple, while slower growth and higher risk usually justify a lower one. So, it is useful to look at where a stock’s multiple sits relative to its fundamentals, not just in isolation.

CRISPR Therapeutics currently trades on a P/B ratio of 2.66x. The Biotechs industry average P/B is 2.61x, so the stock sits very close to the broader group. The peer average multiple is 23.08x, which is far higher than both the company’s own ratio and the sector benchmark.

Simply Wall St’s Fair Ratio is a proprietary estimate of what a stock’s preferred multiple might be given its earnings growth profile, industry, profit margins, market cap and risk factors. This tends to be more tailored than a simple comparison with peers or an industry average, because it adjusts for company-specific strengths and weaknesses rather than assuming all Biotechs deserve the same multiple.

For CRISPR Therapeutics, the Fair Ratio is not available, so this approach does not provide a clear signal on whether the current P/B looks overvalued, undervalued or about right.

Result: ABOUT RIGHT

P/B ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1445 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your CRISPR Therapeutics Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives.

A Narrative is simply your story about a company, where you connect your expectations for its future revenue, earnings and margins to an assumed fair value per share, instead of looking at the numbers in isolation.

On Simply Wall St, Narratives sit inside the Community page and help you link CRISPR Therapeutics' story to a financial forecast, then to a fair value that you can compare directly with the current share price to decide whether the stock looks appealing or not for your own goals.

Because Narratives on the platform are updated when new information like news or earnings is added, your view can adjust quickly without you rebuilding a spreadsheet, and you can also see how other investors can arrive at very different fair values for CRISPR Therapeutics using the same data.

Do you think there's more to the story for CRISPR Therapeutics? Head over to our Community to see what others are saying!

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.