Replimune Group (REPL) Wins FDA Approval, Is The Valuation Still Too Rich?

Replimune Group (REPL) stock is back in focus after Robbins LLP announced a securities class action tied to the company’s RP1 melanoma program and the U.S. Food and Drug Administration’s April 2026 Complete Response Letter.

See our latest analysis for Replimune Group.

Investors have been weighing the legal overhang from the RP1 class action against fresh momentum after the FDA granted accelerated approval for TUDRIQEV, with Replimune Group’s share price at $12.06 reflecting a 90 day share price return of 222.46% and a 1 year total shareholder return of 127.98%, even though the 5 year total shareholder return remains down 60.07%.

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Replimune Group now has an FDA approved product and a history of sharp share price swings. The next step is to ask whether that combination is actually priced sensibly in REPL stock today.

Preferred Price-to-Book Multiple of 6.1x: Is It Justified for Replimune Group?

Replimune Group is currently trading at a P/B of 6.1x, which looks rich compared to both the US Biotechs industry and its closer peer group.

The P/B ratio compares a company’s market value to its book value, so it is a quick way to see how much investors are paying for each dollar of net assets. For an early stage biotech like Replimune Group, a higher P/B can reflect expectations around future products, licensing potential or pipeline progress rather than current revenue, which is reported at $0.

According to the data, REPL trades on a P/B of 6.1x while the broader US Biotechs industry sits at 2.5x and the peer average is 3.4x. That is a clear premium, and it suggests the market is paying significantly more for each dollar of equity in Replimune Group than in comparable biotechs, even though the company is still loss making, reported a loss of $313.94m and is forecast to remain unprofitable over the next 3 years.

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

Result: Price-to-book of 6.1x (OVERVALUED)

However, Replimune Group still faces clear risks around the RP1 class action outcome and its ongoing losses of $313.94m, which could challenge the current valuation.

Find out about the key risks to this Replimune Group narrative.

Another View on Replimune Group’s Valuation

The P/B of 6.1x makes Replimune Group look expensive, yet the SWS DCF model suggests something very different. With a future cash flow value estimate of $94.76 against a share price of $12.06, the model indicates that REPL may be heavily undervalued. Which signal deserves more weight for you as an investor?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Replimune Group for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 52 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mixed picture on Replimune Group has you thinking, it makes sense to review the data now and decide where you stand. To balance the concerns with the potential upside, take a closer look at the 2 key rewards and 5 important warning signs.

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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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