Lineage Cell Therapeutics, Inc.

LCTX

HealthcareBiotechnologyAMEX

$1.31

Market Cap: $326.31M

Lineage Cell Therapeutics, Inc. (LCTX) Valuation Summary

Updated Apr 6, 2026 22:27

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Revenue DCF 5Y	$2.78 – $8.02	$4.46	+189.4%
Revenue DCF 10Y	—	N/A	—
▸ Trading Multiples
EV/Revenue	$0.67 – $1.73	$0.84	-45.7%

Valuation History

DCF Analysis

Lineage Cell Therapeutics, Inc. (LCTX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$4.46

Market Price

$1.31

Upside / Downside

+240.5%

Verdict

Undervalued

Using a Revenue DCF model with operating margin convergence from -149.6% to a target of 13.3% over 5 years, discounted at a WACC of 8.7%, Lineage Cell Therapeutics, Inc. (LCTX) has an intrinsic value of $4.46 per share (range: $2.78 – $8.02).

Key Assumptions

Current Operating Margin

-149.6%

Target Operating Margin

13.3%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

5.8%

Target CapEx/Rev

13.9%

D&A/Revenue

9.3%

Tax Rate

21.0%

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	30	105.3%	-117.0%	-35	-35	3	(2)	71	-105	-101
2027	15	-50.1%	-84.4%	-13	-13	1	(1)	-35	23	20
2028	55	267.6%	-51.8%	-28	-28	5	(6)	94	-123	-100
2029	77	39.7%	-19.3%	-15	-15	7	(9)	51	-68	-51
2030	38	-50.5%	13.3%	5	4	4	(5)	-91	93	64

Enterprise Value Bridge

Sum of PV(FCFF)-168

Terminal Value (Gordon Growth at 3.0%)1,682

PV of Terminal Value1,155

Enterprise Value987

(–) Net Debt-38

Equity Value1,025

(÷) Shares Outstanding230

Fair Value per Share$4.46

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.7%	$8	$8	$8	$8	$8
7.7%	$6	$6	$6	$6	$6
8.7%	$4	$4	$4	$5	$5
9.7%	$3	$3	$4	$4	$4
10.7%	$3	$3	$3	$3	$3

Current price: $1.31. Green = undervalued, Red = overvalued.

Working Capital Assumption

Net Working Capital is modeled at 234.8% 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

$0.73

Market Price

$1.31

Upside / Downside

-44.1%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Lineage Cell Therapeutics, Inc. (LCTX) has a fair value of $0.73 based on 5 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
Lineage Cell Therapeutics, Inc.LCTX	301	18.1x	11.8x
Ocugen, Inc.OCGN	580	134.8x	—
ADC Therapeutics S.A.ADCT	466	7.9x	8.1x
Fulcrum Therapeutics, Inc.FULC	424	4.7x	—
PureTech Health plcPRTC	377	24.7x	3.9x
Autolus Therapeutics plcAUTL	370	8.2x	4.6x
Industry Median		8.2x	4.6x
(*) Revenue		15	22
= Enterprise Value		119	141
(-) Net Debt		-38	-38
Equity Value		157	180
(/) Outstanding shares		230	230
Fair Price		$1	$1

Selected Fair Value (avg of trailing + forward)

$0.73

-44.1%

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

$2.78 – $8.02

$4.46

+189.4%

Revenue DCF 10Y

—

N/A

—

▸ Trading Multiples

EV/Revenue

$0.67 – $1.73

$0.84

-45.7%

DCF Analysis

Lineage Cell Therapeutics, Inc. (LCTX) Revenue DCF (5Y)

REVENUE DCF FAIR VALUE

$4.46

Market Price

$1.31

Upside / Downside

+240.5%

Verdict

Undervalued

Key Assumptions

Current Operating Margin

-149.6%

Target Operating Margin

13.3%

WACC

8.7%

Terminal Growth Rate

3.0%

Historical CapEx/Rev

5.8%

Target CapEx/Rev

13.9%

D&A/Revenue

9.3%

Tax Rate

21.0%

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	30	105.3%	-117.0%	-35	-35	3	(2)	71	-105	-101
2027	15	-50.1%	-84.4%	-13	-13	1	(1)	-35	23	20
2028	55	267.6%	-51.8%	-28	-28	5	(6)	94	-123	-100
2029	77	39.7%	-19.3%	-15	-15	7	(9)	51	-68	-51
2030	38	-50.5%	13.3%	5	4	4	(5)	-91	93	64

Enterprise Value Bridge

Sum of PV(FCFF)-168

Terminal Value (Gordon Growth at 3.0%)1,682

PV of Terminal Value1,155

Enterprise Value987

(–) Net Debt-38

Equity Value1,025

(÷) Shares Outstanding230

Fair Value per Share$4.46

Sensitivity Analysis — WACC × Target Operating Margin

WACC \ Target Op. Margin	7.3%	10.3%	13.3%	16.3%	19.3%
6.7%	$8	$8	$8	$8	$8
7.7%	$6	$6	$6	$6	$6
8.7%	$4	$4	$4	$5	$5
9.7%	$3	$3	$4	$4	$4
10.7%	$3	$3	$3	$3	$3

Current price: $1.31. Green = undervalued, Red = overvalued.

Working Capital Assumption

Trading Multiples

Fair Value

$0.73

Market Price

$1.31

Upside / Downside

-44.1%

Verdict

Overvalued

EV/Revenue Valuation — Biotechnology

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Lineage Cell Therapeutics, Inc.LCTX	301	18.1x	11.8x
Ocugen, Inc.OCGN	580	134.8x	—
ADC Therapeutics S.A.ADCT	466	7.9x	8.1x
Fulcrum Therapeutics, Inc.FULC	424	4.7x	—
PureTech Health plcPRTC	377	24.7x	3.9x
Autolus Therapeutics plcAUTL	370	8.2x	4.6x
Industry Median		8.2x	4.6x
(*) Revenue		15	22
= Enterprise Value		119	141
(-) Net Debt		-38	-38
Equity Value		157	180
(/) Outstanding shares		230	230
Fair Price		$1	$1

Selected Fair Value (avg of trailing + forward)

$0.73

-44.1%