Arcus Biosciences, Inc.

RCUS

HealthcareBiotechnologyNYSE

$24.78

Market Cap: $2.49B

Arcus Biosciences, Inc. (RCUS) Valuation Summary

Updated May 10, 2026 18:26

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	—	N/A	—
Revenue DCF 10Y	$0.17 – $17.40	$3.71	-85.0%
▸ Trading Multiples
EV/Revenue	$42.72 – $70.34	$40.83	+64.8%

Valuation History

DCF Analysis

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

REVENUE DCF FAIR VALUE

$3.71

Market Price

$24.78

Upside / Downside

-85.0%

Verdict

Overvalued

Using a Revenue DCF model with operating margin convergence from -156.3% to a target of 13.2% over 5 years, discounted at a WACC of 8.6%, Arcus Biosciences, Inc. (RCUS) has an intrinsic value of $3.71 per share (range: $0.17 – $17.40).

Key Assumptions

Current Operating Margin

-156.3%

Target Operating Margin

13.2%

WACC

8.6%

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	95	-61.6%	-122.4%	-116	-116	5	(7)	45	-162	-156
2027	110	15.6%	-88.5%	-97	-97	6	(8)	7	-106	-94
2028	175	60.0%	-54.6%	-96	-96	10	(13)	31	-130	-106
2029	443	152.6%	-20.7%	-92	-92	25	(34)	127	-227	-171
2030	939	112.1%	13.2%	124	119	53	(73)	235	-136	-94
2031	863	-8.2%	13.2%	114	110	49	(69)	-36	126	80
2032	812	-5.9%	13.2%	107	103	46	(66)	-24	108	63
2033	782	-3.7%	13.2%	103	99	44	(64)	-14	94	50
2034	770	-1.5%	13.2%	102	98	44	(64)	-5	83	41
2035	776	0.8%	13.2%	102	99	44	(66)	3	74	34

Enterprise Value Bridge

Sum of PV(FCFF)-351

Terminal Value (Gordon Growth at 3.0%)1,368

PV of Terminal Value627

Enterprise Value275

(–) Net Debt-123

Equity Value398

(÷) Shares Outstanding107

Fair Value per Share$3.71

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.6%	$0	$5	$9	$13	$17
7.6%	$-1	$2	$6	$9	$12
8.6%	$-2	$1	$4	$6	$9
9.6%	$-2	$0	$2	$5	$7
10.6%	$-2	$-0	$1	$3	$5

Current price: $24.78. 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

$40.83

Market Price

$24.78

Upside / Downside

+64.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Arcus Biosciences, Inc. (RCUS) has a fair value of $40.83 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	2,661	10.3x	26.8x
ImmunityBio, Inc.IBRX	8,749	84.2x	45.5x
Liquidia CorporationLQDA	3,727	23.6x	6.4x
Beam Therapeutics Inc.BEAM	3,321	23.8x	57.3x
Denali Therapeutics Inc.DNLI	3,113	9.2x	74.8x
Ocular Therapeutix, Inc.OCUL	2,113	28.1x	28.1x
Agios Pharmaceuticals, Inc.AGIO	1,653	30.1x	13.5x
Viridian Therapeutics, Inc.VRDN	1,442	18.1x	22.7x
Industry Median		23.8x	28.1x
(*) Revenue		247	95
= Enterprise Value		5,868	2,657
(-) Net Debt		-123	-123
Equity Value		5,991	2,780
(/) Outstanding shares		107	107
Fair Price		$56	$26

Selected Fair Value (avg of trailing + forward)

$40.83

+64.8%

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

$0.17 – $17.40

$3.71

-85.0%

▸ Trading Multiples

EV/Revenue

$42.72 – $70.34

$40.83

+64.8%

DCF Analysis

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

REVENUE DCF FAIR VALUE

$3.71

Market Price

$24.78

Upside / Downside

-85.0%

Verdict

Overvalued

Key Assumptions

Current Operating Margin

-156.3%

Target Operating Margin

13.2%

WACC

8.6%

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	95	-61.6%	-122.4%	-116	-116	5	(7)	45	-162	-156
2027	110	15.6%	-88.5%	-97	-97	6	(8)	7	-106	-94
2028	175	60.0%	-54.6%	-96	-96	10	(13)	31	-130	-106
2029	443	152.6%	-20.7%	-92	-92	25	(34)	127	-227	-171
2030	939	112.1%	13.2%	124	119	53	(73)	235	-136	-94
2031	863	-8.2%	13.2%	114	110	49	(69)	-36	126	80
2032	812	-5.9%	13.2%	107	103	46	(66)	-24	108	63
2033	782	-3.7%	13.2%	103	99	44	(64)	-14	94	50
2034	770	-1.5%	13.2%	102	98	44	(64)	-5	83	41
2035	776	0.8%	13.2%	102	99	44	(66)	3	74	34

Enterprise Value Bridge

Sum of PV(FCFF)-351

Terminal Value (Gordon Growth at 3.0%)1,368

PV of Terminal Value627

Enterprise Value275

(–) Net Debt-123

Equity Value398

(÷) Shares Outstanding107

Fair Value per Share$3.71

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.2%	10.2%	13.2%	16.2%	19.2%
6.6%	$0	$5	$9	$13	$17
7.6%	$-1	$2	$6	$9	$12
8.6%	$-2	$1	$4	$6	$9
9.6%	$-2	$0	$2	$5	$7
10.6%	$-2	$-0	$1	$3	$5

Current price: $24.78. 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

$40.83

Market Price

$24.78

Upside / Downside

+64.8%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Arcus Biosciences, Inc. (RCUS) has a fair value of $40.83 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	2,661	10.3x	26.8x
ImmunityBio, Inc.IBRX	8,749	84.2x	45.5x
Liquidia CorporationLQDA	3,727	23.6x	6.4x
Beam Therapeutics Inc.BEAM	3,321	23.8x	57.3x
Denali Therapeutics Inc.DNLI	3,113	9.2x	74.8x
Ocular Therapeutix, Inc.OCUL	2,113	28.1x	28.1x
Agios Pharmaceuticals, Inc.AGIO	1,653	30.1x	13.5x
Viridian Therapeutics, Inc.VRDN	1,442	18.1x	22.7x
Industry Median		23.8x	28.1x
(*) Revenue		247	95
= Enterprise Value		5,868	2,657
(-) Net Debt		-123	-123
Equity Value		5,991	2,780
(/) Outstanding shares		107	107
Fair Price		$56	$26

Selected Fair Value (avg of trailing + forward)

$40.83

+64.8%