Arcus Biosciences, Inc.

RCUS

HealthcareBiotechnologyNYSE

$25.00

Market Cap: $2.52B

Arcus Biosciences, Inc. (RCUS) Valuation Summary

Updated Apr 6, 2026 22:28

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	—	N/A	—
Revenue DCF 10Y	$0.09 – $16.71	$3.55	-84.0%
▸ Trading Multiples
EV/Revenue	$34.18 – $86.79	$34.77	+56.3%

Valuation History

DCF Analysis

Arcus Biosciences, Inc. (RCUS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.55

Market Price

$25.00

Upside / Downside

-85.8%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -156.3% to a target of 13.3% over 5 years, discounted at a WACC of 8.7%, Arcus Biosciences, Inc. (RCUS) has an intrinsic value of $3.55 per share (range: $0.09 – $16.71).

Key Assumptions

Current Operating Margin

-156.3%

Target Operating Margin

13.3%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

7.2%

Target CapEx/Rev

8.5%

D&A/Revenue

5.7%

Tax Rate

3.6%

Operating margin fades linearly from the current level to the industry target over the 5-year projection. CapEx intensity fades from the historical average to a maintenance level (D&A × 1.5). Tax is only applied when operating income is positive (NOL shield).

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	92	-62.6%	-122.4%	-113	-113	5	(7)	44	-158	-152
2027	112	21.0%	-88.4%	-99	-99	6	(8)	9	-110	-97
2028	196	75.3%	-54.5%	-107	-107	11	(15)	40	-150	-122
2029	454	132.0%	-20.6%	-93	-93	26	(35)	122	-225	-168
2030	947	108.5%	13.3%	126	122	54	(74)	233	-132	-91
2031	869	-8.2%	13.3%	116	112	49	(69)	-37	128	81
2032	818	-5.9%	13.3%	109	105	46	(66)	-24	110	64
2033	788	-3.7%	13.3%	105	101	45	(65)	-14	95	51
2034	776	-1.5%	13.3%	104	100	44	(65)	-5	84	41
2035	782	0.8%	13.3%	104	101	44	(66)	3	76	34

Enterprise Value Bridge

Sum of PV(FCFF)-358

Terminal Value (Gordon Growth at 3.0%)1,363

PV of Terminal Value616

Enterprise Value259

(–) Net Debt-123

Equity Value382

(÷) Shares Outstanding107

Fair Value per Share$3.55

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.7%	$0	$4	$8	$13	$17
7.7%	$-1	$2	$5	$9	$12
8.7%	$-2	$1	$4	$6	$9
9.7%	$-2	$0	$2	$4	$7
10.7%	$-2	$-1	$1	$3	$5

Current price: $25.00. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 47.4% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$35.02

Market Price

$25.00

Upside / Downside

+40.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Arcus Biosciences, Inc. (RCUS) has a fair value of $35.02 based on 7 comparable companies in the Biotechnology industry.

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Arcus Biosciences, Inc.RCUS	2,685	10.4x	27.0x
ImmunityBio, Inc.IBRX	7,279	71.2x	38.5x
Liquidia CorporationLQDA	3,318	21.0x	5.7x
Denali Therapeutics Inc.DNLI	3,073	9.1x	51.4x
Beam Therapeutics Inc.BEAM	2,468	17.7x	55.3x
Agios Pharmaceuticals, Inc.AGIO	2,039	37.2x	22.0x
Ocular Therapeutix, Inc.OCUL	1,757	21.2x	19.4x
Viridian Therapeutics, Inc.VRDN	1,179	14.4x	14.2x
Industry Median		21.0x	22.0x
(*) Revenue		247	95
= Enterprise Value		5,187	2,089
(-) Net Debt		-123	-123
Equity Value		5,310	2,212
(/) Outstanding shares		107	107
Fair Price		$49	$21

Selected Fair Value (avg of trailing + forward)

$35.02

+40.1%

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Model

Range

Fair Value

Upside

▸ Discounted Cash Flow

Revenue DCF 5Y

—

N/A

—

Revenue DCF 10Y

$0.09 – $16.71

$3.55

-84.0%

▸ Trading Multiples

EV/Revenue

$34.18 – $86.79

$34.77

+56.3%

DCF Analysis

Arcus Biosciences, Inc. (RCUS) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$3.55

Market Price

$25.00

Upside / Downside

-85.8%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-156.3%

Target Operating Margin

13.3%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

7.2%

Target CapEx/Rev

8.5%

D&A/Revenue

5.7%

Tax Rate

3.6%

Margin Convergence Projection

USD in millions. Mid-year discounting convention.

Year	Revenue	Growth	Op Margin	Op Income	NOPAT	D&A	CapEx	ΔNWC	FCFF	PV(FCFF)
2026	92	-62.6%	-122.4%	-113	-113	5	(7)	44	-158	-152
2027	112	21.0%	-88.4%	-99	-99	6	(8)	9	-110	-97
2028	196	75.3%	-54.5%	-107	-107	11	(15)	40	-150	-122
2029	454	132.0%	-20.6%	-93	-93	26	(35)	122	-225	-168
2030	947	108.5%	13.3%	126	122	54	(74)	233	-132	-91
2031	869	-8.2%	13.3%	116	112	49	(69)	-37	128	81
2032	818	-5.9%	13.3%	109	105	46	(66)	-24	110	64
2033	788	-3.7%	13.3%	105	101	45	(65)	-14	95	51
2034	776	-1.5%	13.3%	104	100	44	(65)	-5	84	41
2035	782	0.8%	13.3%	104	101	44	(66)	3	76	34

Enterprise Value Bridge

Sum of PV(FCFF)-358

Terminal Value (Gordon Growth at 3.0%)1,363

PV of Terminal Value616

Enterprise Value259

(–) Net Debt-123

Equity Value382

(÷) Shares Outstanding107

Fair Value per Share$3.55

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.7%	$0	$4	$8	$13	$17
7.7%	$-1	$2	$5	$9	$12
8.7%	$-2	$1	$4	$6	$9
9.7%	$-2	$0	$2	$4	$7
10.7%	$-2	$-1	$1	$3	$5

Current price: $25.00. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 47.4% of revenue (historical average of receivables + inventory − payables). Changes in NWC (ΔNWC) are computed year-over-year and subtracted from free cash flow.

Trading Multiples

Fair Value

$35.02

Market Price

$25.00

Upside / Downside

+40.1%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Arcus Biosciences, Inc. (RCUS) has a fair value of $35.02 based on 7 comparable companies in the Biotechnology industry.

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Arcus Biosciences, Inc.RCUS	2,685	10.4x	27.0x
ImmunityBio, Inc.IBRX	7,279	71.2x	38.5x
Liquidia CorporationLQDA	3,318	21.0x	5.7x
Denali Therapeutics Inc.DNLI	3,073	9.1x	51.4x
Beam Therapeutics Inc.BEAM	2,468	17.7x	55.3x
Agios Pharmaceuticals, Inc.AGIO	2,039	37.2x	22.0x
Ocular Therapeutix, Inc.OCUL	1,757	21.2x	19.4x
Viridian Therapeutics, Inc.VRDN	1,179	14.4x	14.2x
Industry Median		21.0x	22.0x
(*) Revenue		247	95
= Enterprise Value		5,187	2,089
(-) Net Debt		-123	-123
Equity Value		5,310	2,212
(/) Outstanding shares		107	107
Fair Price		$49	$21

Selected Fair Value (avg of trailing + forward)

$35.02

+40.1%