Latest Ratios: P/E Ratio -5488.5x · EV/EBITDA 78.3x · ROE -0.5%. (1997–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.4B | $4.6B | $2.3B | $2.9B | $3.5B | $6.5B | $4.3B | $2.8B | $1.6B | $320M | $449M |
| Enterprise Value | $9.6B | $4.8B | $3.1B | $3.1B | $3.5B | $6.3B | $4.2B | $2.6B | $1.6B | $298M | $366M |
| P/E Ratio → | -5488.52 | — | — | — | — | — | — | 40.84 | — | — | — |
| P/S Ratio | 11.37 | 5.56 | 653.40 | 11.92 | 14.33 | 46.84 | 49.29 | 16.46 | 99.33 | 10.19 | 2834.05 |
| P/B Ratio | 17.79 | 9.16 | 12.14 | 9.99 | 8.33 | 15.84 | 9.39 | 11.39 | 16.83 | 3.96 | 4.72 |
| P/FCF | 60.12 | 29.41 | — | — | — | 43.84 | — | 17.26 | — | — | — |
| P/OCF | 52.53 | 25.69 | — | — | — | 37.81 | — | 16.06 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.73 | 864.39 | 13.05 | 14.22 | 45.69 | 47.90 | 15.15 | 97.60 | 9.48 | 2312.12 |
| EV / EBITDA | 78.28 | 38.87 | — | — | — | — | — | 38.96 | — | — | — |
| EV / EBIT | 97.33 | 33.73 | — | — | — | — | — | 41.79 | — | — | — |
| EV / FCF | — | 30.30 | — | — | — | 42.76 | — | 15.88 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 100.0% | 100.0% | -423.7% | 94.8% | 95.7% | 100.0% | — | — | — | — | — |
| Operating Margin | 11.9% | 11.9% | -16927.1% | -85.2% | -73.4% | -107.8% | -105.9% | 36.3% | -346.5% | -117.8% | -51627.1% |
| Net Profit Margin | -0.2% | -0.2% | -16882.4% | -85.3% | -72.4% | -101.9% | -96.1% | 40.3% | -337.3% | -109.5% | -51614.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -0.5% | -0.5% | -250.7% | -58.2% | -42.6% | -32.4% | -24.0% | 40.1% | -61.8% | -39.1% | -79.9% |
| ROA | -0.1% | -0.1% | -62.9% | -28.2% | -25.1% | -22.9% | -19.4% | 29.5% | -50.5% | -29.6% | -62.8% |
| ROIC | 9.3% | 9.3% | -60.1% | -32.3% | -41.7% | -37.9% | -38.6% | 102.4% | -66.6% | -78.2% | -295.1% |
| ROCE | 8.8% | 8.8% | -70.9% | -33.8% | -32.0% | -28.5% | -25.4% | 34.8% | -60.6% | -39.4% | -74.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.73 | 0.73 | 4.46 | 1.34 | 0.20 | 0.06 | 0.05 | — | 0.02 | 0.03 | 0.03 |
| Debt / EBITDA | 3.00 | 3.00 | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.28 | 3.92 | 0.95 | -0.06 | -0.39 | -0.27 | -0.91 | -0.29 | -0.28 | -0.87 |
| Net Debt / EBITDA | 1.14 | 1.14 | — | — | — | — | — | -3.38 | — | — | — |
| Debt / FCF | — | 0.89 | — | — | — | -1.08 | — | -1.38 | — | — | — |
| Interest Coverage | 1.58 | 1.58 | -17.93 | -10.27 | — | — | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.86 | 4.86 | 6.74 | 3.98 | 2.92 | 2.62 | 7.92 | 2.73 | 6.37 | 3.63 | 3.53 |
| Quick Ratio | 4.86 | 4.86 | 6.74 | 3.98 | 3.07 | 2.59 | 7.82 | 2.70 | 6.27 | 3.58 | 3.48 |
| Cash Ratio | 4.70 | 4.70 | 6.60 | 3.83 | 2.71 | 2.51 | 7.76 | 2.67 | 6.19 | 3.51 | 3.33 |
| Asset Turnover | — | 0.60 | 0.00 | 0.31 | 0.35 | 0.19 | 0.17 | 0.48 | 0.14 | 0.30 | 0.00 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 3.00 | — | — | 2.12 | 27.07 | 3.51 | 1.43 | 7.40 | 0.79 | 172.90 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | 2.4% | — | — | — |
| FCF Yield | 1.7% | 3.4% | — | — | — | 2.3% | — | 5.8% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $134M | $120M | $107M | $105M | $104M | $101M | $99M | $84M | $74M | $61M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying ARWR stock.
Arrowhead Pharmaceuticals, Inc.'s current P/E ratio is -5488.5x. The historical average is 20.9x.
Arrowhead Pharmaceuticals, Inc.'s current EV/EBITDA is 78.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 38.9x.
Arrowhead Pharmaceuticals, Inc.'s return on equity (ROE) is -0.5%. The historical average is -76.7%.
Based on historical data, Arrowhead Pharmaceuticals, Inc. is trading at a P/E of -5488.5x. Compare with industry peers and growth rates for a complete picture.
Arrowhead Pharmaceuticals, Inc. has 100.0% gross margin and 11.9% operating margin. Operating margin between 10-20% is typical for established companies.
Arrowhead Pharmaceuticals, Inc.'s Debt/EBITDA ratio is 3.0x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Episodic milestone cash dependence
Metrics are mathematically derived from official filings.
Milestone-Driven Margin Volatility
Arrowhead's operating margin swung from -191.6% to +70.2% over the last ten quarters, reflecting episodic milestone revenue. According to the quarterly ratio data, non-milestone quarters show deep losses, indicating profitability is not yet sustainable.
The 100% gross margin is an artifact of zero COGS, typical for biotech where R&D absorbs all product costs. Operating margin in 2026Q2 was -191.6%, while 2025Q2 reached +70.2%, highlighting extreme dependence on licensing milestones. Net margin followed a similar pattern, with 2025Q2 at +68.3% versus -180.0% in 2026Q2, suggesting that core operations remain loss-making absent one-time payments.
Returns Decaying on R&D Intensity
ROIC has been negative in most quarters, ranging from -17.7% to +27.1%, with the positive quarter tied to a milestone spike. As reported in the ratio data, cumulative losses and rising R&D suggest returns are not compounding.
ROIC was -8.3% in 2026Q3 and -10.6% in 2025Q3, while the only positive quarter (2025Q2) saw +27.1% due to a $542.7M revenue event. ROE similarly swung from -140.1% to +100.1%, reflecting both operational volatility and a thin equity base. The trend indicates that capital invested in R&D is not yet generating consistent returns, and the company is burning cash to build its pipeline.
Working Capital Distorted by Milestones
Asset turnover is extremely low, averaging 0.03-0.42, reflecting a cash-heavy balance sheet and lumpy revenue. Based on the ratio data, DSO spiked to 143 days in 2026Q2, indicating milestone receivables, while DIO and DPO are unavailable.
The cash conversion cycle cannot be computed due to missing inventory and payables data, but DSO volatility (0 to 143 days) underscores the episodic nature of collections. Asset turnover of 0.03 in 2026Q3 suggests that the $2.3B asset base is not generating proportional revenue, typical for a clinical-stage biotech. This inefficiency is structural, as R&D spending does not translate into immediate sales.
Debt Spikes on Convertible Issuance
Debt-to-equity surged to 15.55 in 2025Q1 and 2.29 in 2026Q2, reflecting convertible debt raises, but interest coverage turned negative in recent quarters. According to the ratio data, leverage is manageable but poses refinancing risk.
Interest coverage was -6.28 in 2026Q3, indicating that operating income is insufficient to cover interest expenses, though this is partly due to milestone timing. The D/E of 1.85 in 2026Q3 is elevated relative to peers like ALNY (1.62), but the company's cash and investments provide a buffer. The 2025Q1 D/E of 15.55 highlights how equity depletion can amplify leverage, and investors should monitor debt maturities against future milestones.
Liquidity Masked by Low Liabilities
Current ratio remains strong at 5.90 in 2026Q3, but cash dropped to $54.8M, down from $226.5M in 2025Q4. As reported in the balance sheet data, the high ratio is partly due to low current liabilities, not robust cash.
The quick ratio equals the current ratio, indicating no inventory dependence, but the absolute cash position is thin relative to quarterly burn. With R&D expenses running near $200M per quarter, the current ratio may overstate liquidity if liabilities are understated. The company's ability to withstand stress depends on accessing capital markets or securing new milestones, which is uncertain.
Misapplied EV/EBITDA Multiple
EV/EBITDA of 102.90 is misleading for Arrowhead because EBITDA is distorted by milestone timing and non-cash charges. According to the ratio data, negative EBITDA in several quarters makes the multiple meaningless, and investors should use EV/Sales or P/FCF instead.
The EV/EBITDA multiple is not meaningful for a biotech with volatile, milestone-driven revenue and significant stock-based compensation. In quarters with negative EBITDA, the ratio is undefined, and in positive quarters it reflects one-time events. A more appropriate metric is EV/Sales (15.00) or P/FCF (79.31), but these also require adjustment for the lumpy nature of licensing deals. Investors should focus on cash runway and pipeline value rather than earnings multiples.