CRSP
CRISPR Therapeutics AG
$48.15
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 47.1% below fair value
You pay
$48.15
Bear
$77.96
Fair
$90.95
Bull
$103.94
Bear
$77.96
+61.9%
$4.70 × 18x P/E
Fair
$90.95
+88.9%
$4.70 × 21x P/E
Bull
$103.94
+115.9%
$4.70 × 24x P/E
Key Value Driver
Normalized P/E multiple (21x base case)
Implied Market Multiple
10.2x
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 $72.86 from 38 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $90.95 per share.
Warnings
Wall Street's average price target is $72.86 (from 38 analysts). Our estimate is 35% above the consensus -- consider that gap carefully.
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