Featured Tickers:

NVAX

PBYI

RIGL

Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Biotechnology industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Biotechnology Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

Click the button below to learn more about A+ Investor and subscribe today.

3 Undervalued Biotechnology Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Biotechnology industry for Wednesday, February 25, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Biotechnology industry median.

Company	Ticker	Price/Sales	Price/Earnings	EV/EBITDA	Shareholder Yield	Price/Book Value	Price/Free Cash Flow	Value Grade
Novavax, Inc.	NVAX	1.43	4.6	2.1	(1.4%)	na	na	A
Puma Biotechnology, Inc.	PBYI	1.75	10.1	3.4	(2.7%)	3.27	8.7	B
Rigel Pharmaceuticals, Inc.	RIGL	2.18	5.6	3.7	(2.5%)	5.33	9.0	B

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Novavax, Inc.’s Value Grade

Value Grade:

Metric	Score	NVAX	Industry Median
Price/Sales	41	1.43	8.25
Price/Earnings	4	4.6	22.5
EV/EBITDA	4	2.1	7.2
Shareholder Yield	59	(1.4%)	(13.3%)
Price/Book Value	na	na	2.90
Price/Free Cash Flow	na	na	29.7

Novavax, Inc., a biotechnology company, engages in the discovering, developing, and commercializing vaccines to protect against serious infectious diseases in the United States, Europe, and internationally. The company offers vaccine platform that combines a recombinant protein approach, nanoparticle technology, and its patented Matrix-M adjuvant to enhance the immune response. The company is commercializing a COVID-19 vaccine, NVX-CoV2373 under the brand names of Nuvaxovid, Covovax, and Novavax COVID-19 Vaccine, adjuvanted for adult and adolescent populations as a primary series and for both homologous and heterologous booster indications. It also developing R21/Matrix-M adjuvant malaria vaccine. Novavax, Inc. was incorporated in 1987 and is headquartered in Gaithersburg, Maryland.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Novavax, Inc. has a Value Score of 88, which is considered to be undervalued.

When you look at Novavax, Inc.’s price-to-sales ratio at 1.43 compared to the industry median at 8.25, this company has a lower price relative to revenue compared to its peers. This could make Novavax, Inc.’s stock more attractive for value investors.

Novavax, Inc.’s price-earnings ratio is 4.60 compared to the industry median at 22.45. This means it has a lower share price relative to earnings compared to its peers. This could make Novavax, Inc. more attractive for value investors.

Now, let’s assess Novavax, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 2.1, when compared to the industry median of 7.2, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Novavax, Inc.’s shareholder yield is higher than its industry median ratio of (13.30%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

Puma Biotechnology, Inc.’s Value Grade

Value Grade:

Metric	Score	PBYI	Industry Median
Price/Sales	46	1.75	8.25
Price/Earnings	15	10.1	22.5
EV/EBITDA	6	3.4	7.2
Shareholder Yield	65	(2.7%)	(13.3%)
Price/Book Value	67	3.27	2.90
Price/Free Cash Flow	20	8.7	29.7

Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care in the United States and internationally. The company offers NERLYNX, an oral version of neratinib that is used to treat adult patients with early stage HER2-overexpressed/amplified breast cancer; and advanced or metastatic HER2-positive breast cancer when combined with capecitabine. It develops alisertib, a small molecule inhibitor of aurora kinase A for the treatment of hormone receptor positive breast cancer, triple negative breast cancer, small cell lung cancer, and head and neck cancer. The company sells its products through specialty pharmacy and distributor networks. It has license agreements with Pfizer Inc. for the development, manufacture, and commercialization of neratinib (oral), neratinib (intravenous), PB357, and related compounds, as well as sub-license agreements with Medison Pharma Ltd., Pint Pharma International SA, Knight Therapeutics, Inc., Pierre Fabre Medicament SAS, and Bixink Therapeutics Co., Ltd. The company was founded in 2010 and is headquartered in Los Angeles, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Puma Biotechnology, Inc. has a Value Score of 72, which is considered to be undervalued.

Puma Biotechnology, Inc.’s price-earnings ratio is 10.1 compared to the industry median at 22.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Puma Biotechnology, Inc. more attractive for value investors.

Puma Biotechnology, Inc.’s price-to-book ratio is lower than its peers. This could make Puma Biotechnology, Inc. more attractive for value investors when compared to the industry median at 2.90.

You can read more about Puma Biotechnology, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Rigel Pharmaceuticals, Inc.’s Value Grade

Value Grade:

Metric	Score	RIGL	Industry Median
Price/Sales	51	2.18	8.25
Price/Earnings	5	5.6	22.5
EV/EBITDA	7	3.7	7.2
Shareholder Yield	64	(2.5%)	(13.3%)
Price/Book Value	79	5.33	2.90
Price/Free Cash Flow	21	9.0	29.7

Rigel Pharmaceuticals, Inc., a biotechnology company, engages in discovering, developing, and providing therapies that enhance the lives of patients with hematologic disorders and cancer. The company’s commercialized products include Tavalisse, an oral spleen tyrosine kinase inhibitor for the treatment of adult patients with chronic immune thrombocytopenia; Rezlidhia, a non-intensive monotherapy to treat adult patients with relapsed or refractory (R/R) acute myeloid leukemia (AML) with a susceptible isocitrate dehydrogenase-1 (IDH1) mutation as detected by an FDA-approved test; and GAVRETO, a once daily, small molecule, oral, kinase inhibitor for the treatment of adult patients with metastatic rearranged during transfection (RET) fusion-positive non-small cell lung cancer (NSCLC), as well as to treat adult and pediatric patients twelve years of age and older with advanced or metastatic RET fusion-positive thyroid cancer. It also develops R289, an oral interleukin receptor-associated kinases 1 and 4 (IRAK1/4) inhibitor for the treatment of hematology-oncology, autoimmune, and inflammatory diseases, as well as to treat lower-risk myelodysplastic syndrome. In addition, the company has product candidates in clinical development with partners BerGenBio ASA, Eli Lilly and Company, and Daiichi Sankyo. It has strategic development collaboration with The University of Texas MD Anderson Cancer Center for the development of Olutasidenib in AML and other hematologic cancers with IDH1mutations, as well as with collaborative network for neuro-oncology clinical trials to evaluate Olutasidenib in combination with temozolomide in patients with high-grade glioma harboring an IDH1 mutation. Rigel Pharmaceuticals, Inc. was incorporated in 1996 and is headquartered in South San Francisco, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Rigel Pharmaceuticals, Inc. has a Value Score of 69, which is considered to be undervalued.

Rigel Pharmaceuticals, Inc.’s price-earnings ratio is 5.6 compared to the industry median at 22.5. This means that it has a lower price relative to its earnings compared to its peers. This makes Rigel Pharmaceuticals, Inc. more attractive for value investors.

Rigel Pharmaceuticals, Inc.’s price-to-book ratio is lower than its peers. This could make Rigel Pharmaceuticals, Inc. more attractive for value investors when compared to the industry median at 2.90.

You can read more about Rigel Pharmaceuticals, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Biotechnology Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Biotechnology stocks as well as other industrys.

Choosing Which of the 3 Best Biotechnology Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

Novavax, Inc. stock has a Value Grade of A.
Puma Biotechnology, Inc. stock has a Value Grade of B.
Rigel Pharmaceuticals, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Biotechnology industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Biotechnology Stocks

Want to learn more about Biotechnology stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.