Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 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.
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5 Undervalued Biotechnology Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Biotechnology industry for Saturday, August 01, 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 |
| Aurinia Pharmaceuticals Inc. | AUPH | 6.77 | 6.8 | 8.9 | 4.7% | 3.43 | 11.8 | B |
| BioCryst Pharmaceuticals, Inc. | BCRX | 2.29 | na | 7.9 | (16.0%) | na | 6.3 | B |
| Emergent BioSolutions Inc. | EBS | 0.57 | na | 4.1 | 4.6% | 0.71 | 2.8 | A |
| Keros Therapeutics, Inc. | KROS | 9.13 | na | 1.6 | 51.6% | 0.70 | na | A |
| Puma Biotechnology, Inc. | PBYI | 1.75 | 16.6 | 5.1 | (2.5%) | 3.15 | 7.4 | 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.
Aurinia Pharmaceuticals Inc.’s Value Grade
Value Grade:
| Metric | Score | AUPH | Industry Median |
| Price/Sales | 84 | 6.77 | 8.31 |
| Price/Earnings | 7 | 6.8 | 19.0 |
| EV/EBITDA | 31 | 8.9 | 4.2 |
| Shareholder Yield | 17 | 4.7% | (16.5%) |
| Price/Book Value | 69 | 3.43 | 2.56 |
| Price/Free Cash Flow | 28 | 11.8 | 23.4 |
Aurinia Pharmaceuticals Inc., a biopharmaceutical company, engages in delivering therapies to people living with autoimmune diseases with high unmet medical needs in the United States and Japan. The company offers LUPKYNIS (voclosporin), an oral therapy for the treatment of adult patients with active lupus nephritis. It also develops aritinercept, a dual inhibitor of B cell-activating factor and proliferation-inducing ligand for the potential treatment of autoimmune diseases. The company was founded in 1993 and is headquartered in Edmonton, Canada.
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.
Aurinia Pharmaceuticals Inc. has a Value Score of 67, which is considered to be undervalued.
When you look at Aurinia Pharmaceuticals Inc.’s price-to-sales ratio at 6.77 compared to the industry median at 8.31, this company has a lower price relative to revenue compared to its peers. This could make Aurinia Pharmaceuticals Inc.’s stock more attractive for value investors.
Aurinia Pharmaceuticals Inc.’s price-earnings ratio is 6.80 compared to the industry median at 19.00. This means it has a lower share price relative to earnings compared to its peers. This could make Aurinia Pharmaceuticals Inc. more attractive for value investors.
Now, let’s assess Aurinia Pharmaceuticals Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 8.9, when compared to the industry median of 4.2, the company may be considered overvalued 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. Aurinia Pharmaceuticals Inc.’s shareholder yield is higher than its industry median ratio of (16.45%). 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.
As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Aurinia Pharmaceuticals Inc.’s price-to-book ratio is higher than its industry median ratio of 2.56. This could make Aurinia Pharmaceuticals Inc. less attractive to investors looking for a new addition to their portfolio.
Lastly, let’s take a look at Aurinia Pharmaceuticals Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Aurinia Pharmaceuticals Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 23.40. This could make Aurinia Pharmaceuticals Inc. more attractive because the lower P/FCF ratio indicates that Aurinia Pharmaceuticals Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.
BioCryst Pharmaceuticals, Inc.’s Value Grade
Value Grade:
| Metric | Score | BCRX | Industry Median |
| Price/Sales | 52 | 2.29 | 8.31 |
| Price/Earnings | na | na | 19.0 |
| EV/EBITDA | 24 | 7.9 | 4.2 |
| Shareholder Yield | 79 | (16.0%) | (16.5%) |
| Price/Book Value | na | na | 2.56 |
| Price/Free Cash Flow | 13 | 6.3 | 23.4 |
BioCryst Pharmaceuticals, Inc., a biotechnology company, developing and commercializing medicines for hereditary angioedema (HAE) and other rare diseases. The company markets peramivir injection, an intravenous neuraminidase inhibitor for the treatment of acute uncomplicated and seasonal influenza under the RAPIVAB, RAPIACTA, and PERAMIFLU names; and ORLADEYO, an oral serine protease inhibitor to treat HAE. It is also developing BCX17725, a protein therapeutic for netherton syndrome which is in phase 1; Avoralstat, an ocular plasma kallikrein inhibitor for diabetic macular edema that is in Phase 1; Navenibart, a monoclonal antibody plasma kallikrein inhibitor for HAE which is in Phase 3; BCX17725, an investigational protein therapeutic KLK5 inhibitor for the treatment of netherton syndrome that is in phase 1 clinical trial; STAR-0310, a monoclonal antibody OX40 antagonist for the treatment of atopic dermatitis which is in Phase 1a trial. The company has collaborations and in-license relationships with the Torii Pharmaceutical Co., Ltd., Shionogi & Co., Ltd., and Green Cross Corporation; National Institute of Allergy and Infectious Diseases; Biomedical Advanced Research and Development Authority; the U.S. Department of Health and Human Services; and Albert Einstein College of Medicine of Yeshiva University and Industrial Research, Ltd. BioCryst Pharmaceuticals, Inc. was founded in 1986 and is headquartered in Durham, North Carolina.
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.
BioCryst Pharmaceuticals, Inc. has a Value Score of 62, which is considered to be undervalued.
You can read more about BioCryst 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.
Emergent BioSolutions Inc.’s Value Grade
Value Grade:
| Metric | Score | EBS | Industry Median |
| Price/Sales | 21 | 0.57 | 8.31 |
| Price/Earnings | na | na | 19.0 |
| EV/EBITDA | 8 | 4.1 | 4.2 |
| Shareholder Yield | 17 | 4.6% | (16.5%) |
| Price/Book Value | 14 | 0.71 | 2.56 |
| Price/Free Cash Flow | 5 | 2.8 | 23.4 |
Emergent BioSolutions Inc., a life sciences company, provides preparedness and response solutions for accidental, deliberate, and naturally occurring public health threats in the United States, Canada, and internationally. It operates through Commercial Products, MCM Products, and All Other Revenues segments. The company offers ACAM2000, a smallpox and mpox vaccine; Anthrax Immune Globulin Intravenous (ANTHRASIL), a polyclonal antibody therapeutic for the treatment of inhalational anthrax; Botulism Antitoxin Heptavalent (BAT), an equine plasma antitoxin for the treatment of symptomatic botulism; BioThrax, an anthrax vaccine; CYFENDUS, a vaccine for post-exposure prophylaxis of disease following suspected or confirmed exposure to Bacillus anthracis; Ebanga, a monoclonal antibody for the treatment of infection caused by Orthoebolavirus zairense; Raxibacumab injection, a monoclonal antibody therapeutic for the treatment and prophylaxis of inhalational anthrax due to Bacillus anthracis; TEMBEXA, an oral antiviral for the treatment of smallpox disease caused by variola virus in adult and pediatric patients; and CNJ-016, a polyclonal antibody therapeutic to address complications from smallpox vaccination. It also provides NARCAN and KLOXXADO nasal sprays for the emergency treatment of known or suspected opioid overdose. In addition, the company offers contract development and manufacturing services comprising drug substance and product manufacturing, and packaging, as well as technology transfer, process, analytical development, and suite reservation services. Emergent BioSolutions Inc. was incorporated in 1998 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.
Emergent BioSolutions Inc. has a Value Score of 99, which is considered to be undervalued.
Emergent BioSolutions Inc.’s price-to-book ratio is higher than its peers. This could make Emergent BioSolutions Inc. less attractive for value investors when compared to the industry median at 2.56.
You can read more about Emergent BioSolutions 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.
Keros Therapeutics, Inc.’s Value Grade
Value Grade:
| Metric | Score | KROS | Industry Median |
| Price/Sales | 88 | 9.13 | 8.31 |
| Price/Earnings | na | na | 19.0 |
| EV/EBITDA | 4 | 1.6 | 4.2 |
| Shareholder Yield | 0 | 51.6% | (16.5%) |
| Price/Book Value | 14 | 0.70 | 2.56 |
| Price/Free Cash Flow | na | na | 23.4 |
Keros Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops and commercializes novel therapeutics to treat patients with disorders linked to dysfunctional signaling of the transforming growth factor-beta family of proteins in the United States. It develops rinvatercept, which acts as a ligand trap and inhibits the biological effects of myostatin and activin A in Phase 1 clinical trials for Duchenne Muscular Dystrophy and Amyotrophic Lateral Sclerosis; and elritercept to target TGF-ß signaling pathways to address diseases that arise from ineffective hematopoiesis in Phase 3 clinical trials for Myelodysplastic Syndromes and Phase 2 clinical trials for Myelofibrosis. The company has collaboration and license agreements with Hansoh (Shanghai) Healthtech Co., Ltd. to develop, manufacture, and commercialize elritercept and licensed products containing elritercept; and Takeda Pharmaceuticals U.S.A., Inc. to develop, manufacture, and commercialize elritercept and certain derivative compounds. Keros Therapeutics, Inc. was incorporated in 2015 and is headquartered in Lexington, Massachusetts.
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.
Keros Therapeutics, Inc. has a Value Score of 89, which is considered to be undervalued.
Keros Therapeutics, Inc.’s price-to-book ratio is higher than its peers. This could make Keros Therapeutics, Inc. less attractive for value investors when compared to the industry median at 2.56.
You can read more about Keros Therapeutics, 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.
Puma Biotechnology, Inc.’s Value Grade
Value Grade:
| Metric | Score | PBYI | Industry Median |
| Price/Sales | 45 | 1.75 | 8.31 |
| Price/Earnings | 41 | 16.6 | 19.0 |
| EV/EBITDA | 11 | 5.1 | 4.2 |
| Shareholder Yield | 62 | (2.5%) | (16.5%) |
| Price/Book Value | 67 | 3.15 | 2.56 |
| Price/Free Cash Flow | 16 | 7.4 | 23.4 |
Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care in the United States and internationally. It 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. The company also 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. It sells its products through specialty pharmacy and distributor networks. The company 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 Specialised Therapeutics Asia Pte Ltd., Medison Pharma Ltd., Pint Pharma International SA, Knight Therapeutics, Inc., Pierre Fabre Medicament SAS, and Bixink Therapeutics Co., Ltd. Puma Biotechnology, Inc. 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 65, which is considered to be undervalued.
Puma Biotechnology, Inc.’s price-earnings ratio is 16.6 compared to the industry median at 19.0. 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 2.56.
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.
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 5 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.
- Aurinia Pharmaceuticals Inc. stock has a Value Grade of B.
- BioCryst Pharmaceuticals, Inc. stock has a Value Grade of B.
- Emergent BioSolutions Inc. stock has a Value Grade of A.
- Keros Therapeutics, Inc. stock has a Value Grade of A.
- Puma Biotechnology, Inc. stock has a Value Grade of B.
Now that you have a bit more background about each of the 5 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.
- 5 Undervalued Biotechnology Stocks for Friday, July 31
- Is Caris Life Sciences, Inc. (CAI) Overvalued?
- Is Grifols, S.A. (GRFS) Overvalued?
- Is Relay Therapeutics, Inc. (RLAY) Overvalued?
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