CGEM
Cullinan Therapeutics, Inc.
$17.10
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 48.0% below fair value
You pay
$17.10
Bear
$28.21
Fair
$32.91
Bull
$37.61
Bear
$28.21
+64.9%
$2.38 × 12x P/E
Fair
$32.91
+92.4%
$2.38 × 14x P/E
Bull
$37.61
+119.9%
$2.38 × 16x P/E
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
7.2x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $31.25 from 8 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $32.91 per share.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples