Why IMU is a multi multi bagger, page-26006

there is no sentiment involved its all pure mathematical modelling

The valuation models used by analysts typically include:

1. Price-to-Book (PB) Ratio: This ratio compares the company's market value to its book value. Imugene's PB ratio is currently 4.1x, which is considered a reasonable valuation compared to its peers, although slightly higher than the Australian biotech industry average of 3.8x. This suggests that the market has some confidence in Imugene's future growth potential despite its current losses.

2. Enterprise Value Metrics: Analysts also consider metrics like Enterprise Value to Revenue (EV/Revenue) and Enterprise Value to EBITDA (EV/EBITDA) to assess how the company is valued relative to its ability to generate revenue and earnings. Imugene's EV/Revenue is relatively high at 44.7x, which could imply high expectations for future growth. However, the negative EV/EBITDA ratio reflects current operating losses.

3. Forecasted Growth and Market Potential: The high target price also reflects expectations for future growth, especially considering Imugene's pipeline of clinical-stage products in oncology. Analysts may expect significant milestones, such as clinical trial results or regulatory approvals, to drive the stock price higher

Below is how you analyse the model error ratio
PB Ratio: Error is significant in industries with high intangible assets or where book values do not reflect market conditions accurately.EV Metrics: High error in volatile or unpredictable earnings environments, common in early-stage biotech companies.Growth Rate Projections: Potentially the highest error due to the speculative nature of future clinical trial outcomes and market conditions.