Is MBIO undervalued? Our fair value estimate
Mustang Bio, Inc. · Healthcare · NCM
How we got here
The estimate is computed from MBIO's reported fundamentals, with a growth assumption that is deliberately capped: small changes to an uncapped growth or terminal assumption can justify any price, and a number that can justify anything means nothing. These are the inputs the model holds for MBIO today; the exact method, and where it goes wrong, is on the methodology page.
Persistent high returns on capital are what a moat looks like in the accounts, and they feed the moat score alongside the valuation.
A volatility measure against the wider market. A jumpier share earns a larger discount for risk, which lowers the estimate.
The belief gap: what growth this price asks you to believe
Run our DCF backwards and every price becomes a growth assumption. One axis compares them: today's market price, the entry prices implied by super investors' 13F filings, the mean analyst target, and the growth our own model funds. The gap between the market's marker and the cohort's markers is the growth you are being asked to believe that informed buyers did not need.
No growth rate between 0% and 30% makes our model's fair value equal today's price, so the market is pricing something our DCF cannot express. Citadel Advisors's Q4 2025 entry underwrote about 1.5%. Our model funds 5.0%.
Citadel Advisors's Q4 2025 filing implies an average entry near $0.98, which implied about 1.5% annual growth under our model (low confidence).
Two Sigma Investments's Q4 2025 filing implies an average entry near $0.98, which implied about 1.5% annual growth under our model (low confidence).
Entry prices are filing-implied averages (reported position value divided by reported shares for the quarter a position was opened or materially increased), not actual cost bases; 13Fs lag by up to 45 days. How the Belief Gap is computed.
Healthcare peers, by our rating
The same model, run on the highest-rated names in the same sector. A gap to fair value is only comparable when the method behind it is identical, which here it is.
Common questions
Is Mustang Bio, Inc. (MBIO) undervalued?
On our model, MBIO at USD0.56 trades 103% below our fair value estimate of USD1.14, so it screens as undervalued today. That is one model's answer, not a recommendation: a fair value estimate is an argument about the future, and the market is frequently right about why something is cheap.
What is the fair value of MBIO?
Our current fair value estimate for Mustang Bio, Inc. is USD1.14 per share. The estimate moves as prices and fundamentals move.
How is MBIO's fair value calculated?
From Mustang Bio, Inc.'s reported fundamentals: earnings power, a deliberately capped growth assumption, and a discount for balance sheet and volatility risk. The full method, including its known weaknesses, is published on our methodology page, and the interactive Valuation Lab lets you change every assumption and watch the value move.
Disagree with an assumption? Good. The Valuation Lab on the MBIO app page puts every input of this model on a slider, including a reverse DCF that shows the growth the market is currently pricing in.
A fair value estimate is a model output computed from company filings and market data, refreshed daily; quotes are delayed. It is educational information, not financial advice and not a recommendation to buy or sell anything. Read the full disclaimer.