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If you are wondering whether Arcellx at around US$69.47 a share still represents value, you are not alone. This article is designed to help you frame that question clearly.
The stock shows returns of 1.3% over the past week, 9.7% over the last month and year to date, and 7.3% over the past year, with a very large 3 year return of 116.2%. This often prompts investors to reassess both growth potential and risk.
Recent news coverage around Arcellx has focused on its position within the pharmaceuticals and biotech space and investor interest following these multi period return figures. This context, combined with sector attention, helps explain why price action and sentiment toward the stock have been in focus.
On our 6 point valuation check, Arcellx currently scores a 3 out of 6. This places it in the middle of the pack and sets up a closer look at how different valuation methods assess the shares, before finishing with a perspective that can help you go beyond the usual ratios.
Find out why Arcellx’s 7.3% return over the last year is lagging behind its peers.
A Discounted Cash Flow model estimates what a company could be worth by projecting its future cash flows and then discounting those amounts back to today. It is essentially asking what all those future dollars are worth in present terms.
For Arcellx, the latest twelve month free cash flow is a loss of $203.8 million. Analysts provide free cash flow estimates out to 2030, with Simply Wall St extrapolating further to build a 2 Stage Free Cash Flow to Equity model. Within this, projected free cash flow in 2030 is $604.5 million. The model also includes discounted projections from 2026 through 2035, all expressed in dollars and kept below the $1 billion threshold.
Pulling these projections together, the DCF model arrives at an estimated intrinsic value of about $481.67 per share. Compared with the recent share price of around $69.47, this implies the stock is assessed as 85.6% undervalued using this methodology.
Result: UNDERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Arcellx is undervalued by 85.6%. Track this in your watchlist or portfolio, or discover 876 more undervalued stocks based on cash flows.
ACLX Discounted Cash Flow as at Feb 2026
For companies that are not yet generating positive earnings, price based multiples that rely on profits are less informative, so investors often look at balance sheet based measures like the Price to Book, or P/B, ratio instead. P/B compares the market value of the equity to the accounting value of net assets, which can be a useful anchor for early stage or loss making businesses.
Story Continues
In general, higher growth expectations and lower perceived risk can support a higher “normal” valuation multiple, while slower growth and higher risk tend to justify a lower one. With Arcellx, the current P/B ratio is 9.11x, compared with the Biotechs industry average of 2.60x and a peer group average of 5.28x. On these simple comparisons, the shares trade at a premium to both the sector and peers.
Simply Wall St’s Fair Ratio is a proprietary estimate of what the preferred multiple could be, taking into account factors such as earnings growth, profit margins, industry, market cap and specific risk profile. Because it blends these elements into a single benchmark, it offers a more tailored reference point than a basic industry or peer average. In this case, there is no Fair Ratio available, so it is not possible to reach a clear view on whether the current 9.11x P/B is high, low or about right.
Result: ABOUT RIGHT
NasdaqGS:ACLX P/B Ratio as at Feb 2026
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Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These let you attach a clear story to the numbers, such as your view on Arcellx’s future revenue, earnings and margins, and the fair value that falls out of those assumptions.
A Narrative is simply your own structured view of a company. You link what you believe about its products, pipeline, competitive position and risks to a financial forecast, and then to a fair value per share that you can compare with today’s price.
On Simply Wall St’s Community page, millions of investors use Narratives as an easy tool to see whether their fair value suggests Arcellx is priced attractively or expensively at around US$69.47. Those Narratives automatically refresh when new earnings, news or other data are added.
For example, one Arcellx Narrative might set a very optimistic fair value near the DCF estimate of about US$481.67 per share, while another more cautious Narrative could sit much closer to the current market price, reflecting different expectations for the company’s future.
Do you think there’s more to the story for Arcellx? Head over to our Community to see what others are saying!
NasdaqGS:ACLX 1-Year Stock Price Chart
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.
Companies discussed in this article include ACLX.
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