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Vaxcyte (PCVX) Valuation Check After OPUS Phase 3 Milestone for Next-Gen Pneumococcal Vaccine

Simply Wall St · 21h ago

Vaxcyte (PCVX) just crossed a major clinical milestone by dosing the first participants in its OPUS Phase 3 trial for VAX-31, a next generation pneumococcal vaccine candidate aligned with FDA expectations.

See our latest analysis for Vaxcyte.

The OPUS Phase 3 start comes after a volatile stretch, with the latest share price at $44.34 and a roughly 44% 3 month share price return contrasting with a much weaker 1 year total shareholder return. This suggests near term momentum is rebuilding as investors reassess long term prospects.

If this kind of clinical upside interests you, it is worth scanning other vaccine and biotech names using our healthcare stocks screener, starting with healthcare stocks.

With the shares still down about 50 percent over the past year yet trading more than 100 percent below the average analyst target, investors now face a key question: is this a compelling entry point, or is future growth already reflected in the price?

Price-to-Book of 2x: Is it justified?

Based on a price to book ratio of 2x versus Vaxcyte's last close at $44.34, the stock screens as relatively inexpensive against biotech peers.

The price to book ratio compares the company’s market value to its net assets, a useful lens for early stage biotechs with minimal current revenue. For Vaxcyte, investors are effectively paying 2 times its book value.

This level looks restrained when set against expectations for extremely rapid top line expansion, with revenue forecast to compound well ahead of the broader US market in coming years, even though profits are not expected near term. The market appears to be pricing in the growth runway while still applying a discount for ongoing losses and funding risk rather than awarding a premium multiple.

Compared with the US biotechs industry average price to book of 2.7x and a much richer 13.1x across close peers, Vaxcyte’s 2x reading sits at a clear relative discount. That gap suggests investors are paying markedly less for each dollar of net assets than they are for many comparable names.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-book of 2x (UNDERVALUED).

However, clinical and funding risks remain. With zero revenue and ongoing heavy losses, any trial setback or capital shortfall could quickly pressure sentiment.

Find out about the key risks to this Vaxcyte narrative.

Build Your Own Vaxcyte Narrative

If you are not fully aligned with this view, or simply prefer digging into the numbers yourself, you can build a complete story in under three minutes: Do it your way.

A great starting point for your Vaxcyte research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

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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.