Why Celldex Therapeutics Stock Is Back on Watch

With no single headline event driving attention today, Celldex Therapeutics (CLDX) is drawing interest as investors reassess a clinical stage pipeline, recent share performance and the company’s current valuation setup.

The share price at US$27.38 comes after a mixed stretch, with a modest 7 day share price return of 1.37%, a slightly negative 30 day share price return, and a 1 year total shareholder return of 12.44%. This sits against a much weaker 3 year total shareholder return, suggesting momentum has only recently started to rebuild as investors reassess risk and potential around the clinical pipeline and valuation.

If Celldex has caught your eye, it can be useful to compare it with other biotech names by scanning healthcare stocks for fresh ideas in the same space.

With the shares at US$27.38, an intrinsic value estimate implying a large discount, and a 3-year return of 40.50%, it raises the key question: is Celldex undervalued now, or is the market already pricing in future growth?

Price To Book Of 3x: Is It Justified?

Celldex is trading on a P/B of 3x at a last close of US$27.38, which screens as good value versus some peers but looks relatively full versus the broader US biotech group.

P/B compares the company’s market value to its book value. This can be a common yardstick for early stage or unprofitable biopharma names where earnings based ratios are not yet meaningful.

For Celldex, the data points pull in two directions. On one hand, it is described as good value versus a peer average P/B of 4.4x, suggesting the market is not assigning the richest multiples available in the space. On the other hand, it is also flagged as expensive against the wider US biotech industry, which sits at a P/B of 2.7x, so investors are still paying a premium versus that broader reference group.

That tension sits alongside our DCF work, which points to a fair value of US$84.70 compared with the current US$27.38. This implies the SWS DCF model sees room for the valuation to move closer to its own long run cash flow assumptions rather than to any single multiple benchmark.

Result: Price to book of 3x (ABOUT RIGHT)

However, you still have to weigh the long clinical timelines and the current net loss of US$224.532 million. Together, these factors keep execution and funding risk firmly on the table.

Another Angle on Value

The earlier P/B check suggested Celldex sits somewhere between peer value and a broader sector premium. Our DCF model, however, points to a fair value of US$84.70 versus the current US$27.38, which screens as significantly undervalued. Is the market too cautious about long clinical timelines, or is the model too optimistic on future cash flows?

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 879 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 look at the numbers and reach a different conclusion, or simply prefer to test your own assumptions, you can build a custom view in just a few minutes: 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 sits on your watchlist, do not stop there. Cast a wider net with data driven screens that can surface opportunities you might otherwise miss.

• Spot potential bargains early by checking out these 879 undervalued stocks based on cash flows that may be trading below what their cash flows imply.
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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.