How Do We Tell if CRISPR Therapeutics AG (CRSP) Is Overvalued?

CRISPR Therapeutics AG may be overvalued with poor growth indicators, but the 26 analysts following the company give it an average rating of buy. The analysts have set target prices ranging from $42.0 to $220.0 per share, for an average of $83.54. At today's price of $61.71, CRISPR Therapeutics AG is trading -26.13% away from its average target price, suggesting there is an analyst consensus of strong upside potential.

CRISPR Therapeutics AG, a gene editing company, focuses on developing gene-based medicines for serious diseases using its Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) platform. Based in Zug, Switzerland, the mid-cap Health Care company has 458 full time employees. CRISPR Therapeutics AG has not offered a regular dividend during the last year.

CRISPR Therapeutics AG does not have a meaningful trailing P/E ratio since its earnings per share are negative. Its forward EPS guidance is negative too, at -6.59. The average P/E ratio for the Health Care sector is 24.45. On the other hand, the market is undervaluing CRISPR Therapeutics AG in terms of its net assets because its P/B ratio is 2.62. In comparison, the sector average is 4.16.

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (k) $289,590 $543 $913,081 $436
Gross Margins n/a n/a n/a -25186.7%
Operating Margins 16.1% -65273.5% 40.9% -154394.7%
Net Margins 23.09% -64247.7% 41.36% -149122.71%
Net Income (k) $66,858 -$348,865 $377,661 -$650,175
Depreciation & Amort. -$4,725 -$9,184 -$17,953 -$24,172
Earnings Per Share $1.17 -$5.29 $4.7 -$6.68
EPS Growth n/a -552.14% 188.85% -242.13%
Diluted Shares (k) 56,933 65,950 80,393 78,935
Free Cash Flow (k) $49,993 -$256,724 $457,267 -$532,929
Capital Expenditures -$6,684 -$18,358 -$81,705 -$37,188
Net Current Assets (k) $860,220 $1,552,888 $2,065,096 $1,485,448
Current Ratio 17.29 18.21 20.17 15.3
The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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