Taking Stock of Vaxcyte (PCVX): Valuation After Encouraging VAX-31 Phase 2 Results and Bullish Analyst Outlook

Recent analyst commentary around Vaxcyte (PCVX) zeroed in on encouraging Phase 2 data for its VAX-31 pneumococcal vaccine, sharpening investor focus on how the program could reshape the company’s prospects as it heads into pivotal Phase 3 trials.

See our latest analysis for Vaxcyte.

Those upbeat VAX-31 data have arrived after a choppy stretch, with the share price at $47.65 and a 7 day share price return of 10.66 percent. This contrasts with a year to date share price return of negative 42.80 percent and a 5 year total shareholder return of 64.54 percent, suggesting long term believers have still been rewarded even as near term volatility reflects shifting views on risk and execution.

If Vaxcyte’s story has you rethinking your exposure to healthcare innovators, this could be a good moment to explore other promising healthcare stocks that the market may be mispricing.

With shares trading at roughly half of consensus price targets but after a powerful rebound on trial optimism, is Vaxcyte still mispriced by a cautious market, or are investors already baking in years of future growth?

Price to Book of 2.2x: Is it justified?

Vaxcyte changes hands at a price to book ratio of 2.2 times, which screens as inexpensive relative to peers despite its lack of profits.

Price to book compares a company’s market value with the net assets on its balance sheet, a common yardstick for early stage biotechs that do not yet generate earnings or meaningful revenue. For Vaxcyte, this metric anchors investor expectations in tangible capital invested today rather than uncertain near term profitability, reflecting how the market weighs its vaccine pipeline potential against ongoing cash burn.

Compared with the average price to book of 13.2 times for similarly sized peers and 2.7 times for the broader US biotech industry, Vaxcyte’s 2.2 times multiple looks notably restrained. That gap suggests investors are demanding a discount despite aggressive revenue growth forecasts, potentially leaving room for re rating if clinical and commercial milestones for VAX 24 and VAX 31 track as hoped.

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

Result: Price to book of 2.2x (UNDERVALUED)

However, investors still face meaningful risks, including potential clinical setbacks for VAX 24 or VAX 31 and ongoing cash burn that could require capital raises that dilute existing shareholders.

Find out about the key risks to this Vaxcyte narrative.

Build Your Own Vaxcyte Narrative

If you see the numbers differently or want to dig into the underlying drivers yourself, you can build a personalized view in just a few 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.

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