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Immunocore Holdings PLC earns a 3-star quantitative star rating, reflecting our opinion that this share class is a balanced choice, but prudent investors should consider looking elsewhere. The stock currently trades at a minor 2% premium over our quantitative fair value estimate of $28.88 per share; however, this estimate should be taken with a pinch of salt due to its high uncertainty rating.

The company's valuation metrics weaken our fair value estimate. A company's valuation metrics provide insights into the market's expectations for its future growth and profitability. Reflecting the firm's valuation is its enterprise value to EBITDA ratio of 120.4, which falls in the top 10% globally. This suggests that the value of its enterprise value, or the value of its shares and debt, is a high multiple of the generated EBITDA. We believe this is a sign that shares could be overvalued.

The company's lack of profitability is an additional cause for concern. Companies with low profitability are often less resilient in recessions and are likely to generate weaker future cash flows for shareholders. The firm's earnings yield of -0.7%, for example, ranks in the bottom 30% globally. The earnings generated by the company relative to its share price is concerning, which further promotes our unfavorable price/fair value ratio.

With its quantitative economic moat rating of none, this business is unlikely to consistently outearn its cost of capital without structural protection from competition. However, its financial health score is strong, suggesting that the company should be well positioned to weather tough times.