AlphaMadera's AlphaVal page computes Arcus Biosciences, Inc.'s fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag RCUS as undervalued, fairly valued, or overvalued.

What is Arcus Biosciences, Inc.'s fair value?

Fair value for RCUS is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

How does AlphaMadera value RCUS?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from RCUS's most recent reported fundamentals.

RCUS - Arcus Biosciences, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $31.75 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

High-Growth Software 80% confidence

Primary model: Revenue × Terminal Margin DCF

Valuation Signal Overvalued Mild

Trading 0.7% above fair value

Current Price $28.15

Bear Case $16.27 42.2% downside ($16.27 - $28.15) / $28.15 = -42.2% 16% rev growth, 21% terminal margin

Fair Value $27.96 0.7% downside ($27.96 - $28.15) / $28.15 = -0.7% 26% rev growth, 28% terminal margin

Bull Case $42.78 52.0% upside ($42.78 - $28.15) / $28.15 = 52.0% 34% rev growth, 32% terminal margin

Adjust Assumptions

Revenue Growth Rate

26.0%

Terminal FCF Margin

28.0%

Discount Rate

12.0%

Key Value Driver

Revenue growth (26%) × margin expansion to 28%

Terminal Value % of EV 69%

Implied Market Multiple 8.0x

Plain-Language Summary

Our base-case estimate uses a discounted cash flow model based on revenue growth and long-run free cash flow margins. We then blend that result with the average analyst price target of $31.75 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $27.96 per share.

Warnings

⚠ Stock-based employee pay is 24% of revenue — your ownership shrinks by about 2.0% each year as new shares are issued. Our estimate already accounts for this dilution.

⚠ Our estimate assumes profit margins grow from 0% to 28% over 10 years. If that improvement stalls, the company is worth considerably less.

ℹ Gross margin of 96% means each dollar of revenue is highly profitable. As the company grows, overhead costs should shrink as a share of revenue, boosting overall profits.

Key Risks

Current FCF misleads — the model values future margins, not today's cash
SBC dilution is the hidden tax: 2-4% annual share growth compounds fast
Revenue deceleration is inevitable — the question is when and how steep