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In a striking validation of data-driven investment analysis, Genmab A/S (NASDAQ:GMAB) shares have delivered a remarkable 65% return since InvestingPro identified the stock as significantly undervalued in May 2025. This impressive performance demonstrates how Fair Value analysis can help investors identify mispriced securities before the broader market recognizes the opportunity. By combining multiple valuation methodologies to determine a stock’s intrinsic value, Fair Value analysis enables more informed entry and exit decisions, potentially leading to superior investment returns. Investors looking for similar opportunities can explore the current Most undervalued list for stocks that may be trading below their intrinsic value.
Genmab, a Danish biotechnology company specializing in antibody therapeutics for cancer treatment, was flagged by InvestingPro’s Fair Value models on May 11, 2025, when the stock was trading at just $19.36. At that time, the company reported quarterly revenue of $3.23 billion, EBITDA of $1.14 billion, and EPS of $17.83. Despite these solid fundamentals and an excellent financial health score of 3.42, Genmab had experienced mixed stock performance in the preceding six months, with negative returns in three of those months. The disconnect between the company’s strong fundamentals and its stock price performance created the value opportunity that InvestingPro’s models identified.
When InvestingPro’s Fair Value analysis highlighted Genmab, it estimated an upside potential of nearly 50%. In the subsequent five months, the stock has exceeded those expectations, climbing to $30.47 by mid-November 2025—representing a 65% return. This performance validates the accuracy of InvestingPro’s valuation methodology and demonstrates how identifying undervalued stocks can lead to substantial investment returns. The stock’s monthly performance showed consistent improvement, with a particularly strong surge of 23.3% in September 2025.
Recent developments have confirmed the bullish thesis. Genmab reported impressive Q3 2025 results with 21% year-over-year revenue growth, while its current financials show substantial improvements across the board—revenue is up 19% to $3.85 billion, EBITDA increased 28% to $1.47 billion, and EPS jumped 42% to $25.24 compared to when the Fair Value signal was given. The company has made significant clinical progress, particularly with its Rina-S treatment showing promise in endometrial cancer trials. Wall Street has taken notice, with H.C. Wainwright raising its price target to $41 following FDA approval of a key product, and Truist Securities increasing its target to $49 on the promising Merus acquisition.
InvestingPro’s Fair Value analysis achieves such accuracy by aggregating multiple valuation methods, including discounted cash flow models, comparable company analyses, and consideration of analyst consensus targets. This comprehensive approach provides a more reliable intrinsic value estimate than any single valuation method could offer. By calculating a margin of safety and analyzing future cash flow projections, the model helps investors identify stocks trading significantly below their fair value—exactly what happened with Genmab in May 2025.
The Genmab success story is just one example of how InvestingPro’s tools can help investors identify market inefficiencies. With features like Fair Value analysis, financial health scores, and comprehensive fundamental data, InvestingPro subscribers gain access to institutional-grade analytics that can lead to better investment decisions. Whether you’re looking for undervalued gems like Genmab was in May or trying to avoid overvalued stocks, InvestingPro provides the data and insights needed to make more informed investment choices. Learn more about InvestingPro and discover how these powerful tools could enhance your investment strategy.