Latest Ratios: P/E Ratio -339.3x · EV/EBITDA 385.1x · ROE -18.2%. (2017–2025 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.6B | $455M | $345M | $112M | $71M | $108M | $171M | $128M | $39M | — |
| Enterprise Value | $1.6B | $460M | $360M | $96M | $61M | $100M | $157M | $120M | $13M | — |
| P/E Ratio → | -339.29 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 19.76 | 5.69 | 8.84 | 3.55 | 3.34 | 4.95 | 4379.78 | 133.35 | — | — |
| P/B Ratio | 59.34 | 17.40 | 14.12 | 7.26 | 5.42 | 6.13 | 10.91 | 12.12 | 1.49 | — |
| P/FCF | 155.04 | 44.65 | 365.77 | 18.60 | 34.88 | — | — | — | — | — |
| P/OCF | 150.13 | 43.24 | 355.96 | 16.48 | 14.71 | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.75 | 9.23 | 3.04 | 2.88 | 4.60 | 4016.88 | 125.52 | — | — |
| EV / EBITDA | 385.10 | 111.78 | — | — | — | — | — | — | — | — |
| EV / EBIT | 9999.00 | 2063.19 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 45.15 | 381.74 | 15.95 | 30.07 | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 53.5% | 53.5% | 60.0% | 66.6% | 67.4% | 88.0% | -633.3% | 52.8% | — | — |
| Operating Margin | 0.1% | 0.1% | -6.7% | -3.8% | -38.9% | -6.8% | -69515.4% | -1939.6% | — | — |
| Net Profit Margin | -5.8% | -5.8% | -9.8% | -3.0% | -42.4% | -9.0% | -71717.9% | -1910.3% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -18.2% | -18.2% | -19.2% | -6.6% | -58.8% | -11.7% | -213.4% | -99.4% | -66.3% | -59.0% |
| ROA | -5.5% | -5.5% | -7.1% | -3.3% | -34.4% | -7.3% | -128.9% | -80.7% | -61.0% | -53.2% |
| ROIC | 0.2% | 0.2% | -10.0% | -64.1% | -93.8% | -19.6% | -893.2% | -1068.6% | — | — |
| ROCE | 0.1% | 0.1% | -7.2% | -7.0% | -39.8% | -6.6% | -144.1% | -89.8% | -53.0% | -56.5% |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.19 | 1.19 | 1.23 | 0.35 | 0.50 | 0.38 | 0.46 | 0.43 | — | — |
| Debt / EBITDA | 7.54 | 7.54 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.19 | 0.62 | -1.03 | -0.75 | -0.44 | -0.90 | -0.71 | -1.02 | -1.08 |
| Net Debt / EBITDA | 1.23 | 1.23 | — | — | — | — | — | — | — | — |
| Debt / FCF | — | 0.50 | 15.97 | -2.65 | -4.81 | — | — | — | — | — |
| Interest Coverage | 0.05 | 0.05 | -0.90 | -0.65 | -9.45 | -1.88 | -30.50 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.57 | 1.57 | 2.06 | 1.65 | 3.10 | 5.18 | 6.51 | 7.65 | 13.59 | 16.76 |
| Quick Ratio | 1.17 | 1.17 | 1.29 | 1.60 | 3.01 | 5.06 | 6.18 | 7.45 | 13.59 | 16.76 |
| Cash Ratio | 0.67 | 0.67 | 0.75 | 1.32 | 2.52 | 3.16 | 5.61 | 6.15 | 13.21 | 16.59 |
| Asset Turnover | — | 0.87 | 0.51 | 1.00 | 0.85 | 0.79 | 0.00 | 0.06 | — | — |
| Inventory Turnover | 2.41 | 2.41 | 1.02 | 11.61 | 12.45 | 4.77 | 0.23 | 1.19 | — | — |
| Days Sales Outstanding | — | 53.67 | 50.16 | 39.35 | 31.81 | 91.47 | 449.23 | 180.03 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | 2.7% | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | 0.6% | 2.2% | 0.3% | 5.4% | 2.9% | — | — | — | — | — |
| Buyback Yield | 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% | 2.7% | — |
| Shares Outstanding | — | $27M | $26M | $26M | $25M | $25M | $21M | $18M | $6M | $17M |
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying ETON stock.
Eton Pharmaceuticals, Inc.'s current P/E ratio is -339.3x. This places it at the 50th percentile of its historical range.
Eton Pharmaceuticals, Inc.'s current EV/EBITDA is 385.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Eton Pharmaceuticals, Inc.'s return on equity (ROE) is -18.2%. The historical average is -61.4%.
Based on historical data, Eton Pharmaceuticals, Inc. is trading at a P/E of -339.3x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Eton Pharmaceuticals, Inc. has 53.5% gross margin and 0.1% operating margin.
Eton Pharmaceuticals, Inc.'s Debt/EBITDA ratio is 7.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Profitability conversion lagging growth
Metrics are mathematically derived from official filings.
Growth Premium Priced on Future Inflection
Eton's forward P/E of 47.91 and EV/EBITDA of 32.77 reflect a market pricing in a rapid earnings inflection, as the company's TTM P/E remains negative at -355.53, according to current valuation multiples.
The significant discount from the forward P/E to the TTM P/E suggests the market is not valuing Eton on its current, nascent profitability but on the substantial earnings power implied by its 104.9% YoY revenue growth trajectory. The P/S ratio of 20.71 is exceptionally high for a specialty pharmaceutical firm, indicating investors are paying for future market share in the orphan drug space rather than current sales. This valuation profile is highly sensitive to the sustainability of the recent margin expansion and the successful execution of the Zeneo pipeline.
Margin Expansion Driven by Portfolio Shift
Gross margin surged to 67.6% in Q2 2026 from 35.0% a year prior, a dramatic expansion that appears to be driven by a favorable mix shift toward higher-margin orphan drug sales, as reported in the company's latest quarterly financials.
The leap in gross margin is the most critical profitability metric, as it signals the successful transition from lower-margin hospital products to the higher-value orphan drug portfolio. Operating margin turned positive at 34.0% in Q2 2026, demonstrating significant operating leverage as revenue scales over a relatively fixed SG&A base. However, the net margin of 30.8% is still below the gross margin, suggesting ongoing non-cash charges or interest expenses are consuming a portion of the operating profit, warranting further investigation into the cost structure.
ROIC Inflection Signals Value Creation
Return on Invested Capital (ROIC) swung to a robust 26.7% in Q2 2026 from -11.0% a year ago, indicating the company's recent revenue growth is now generating meaningful returns on the capital deployed for its orphan drug launch.
The dramatic improvement in ROIC from deeply negative to a strong positive figure suggests the business model is beginning to compound value, driven primarily by the surge in operating margins rather than asset turnover. The ROE of 30.0% in Q2 2026, while positive, is significantly lower than the ROIC, which may indicate that the company's equity base is still weighed down by accumulated deficits. Investors should monitor whether this ROIC level is sustainable or represents a peak from initial launch dynamics.
Working Capital Swings Amid Rapid Scale-Up
The Cash Conversion Cycle (CCC) improved dramatically to 34 days in Q2 2026 from 101 days a year prior, driven by a sharp reduction in Days Inventory Outstanding (DIO) to 92 days from 128 days, as reported in the company's financial statements.
The significant shortening of the CCC is a positive indicator of improving working capital efficiency, likely reflecting better inventory management and stronger pricing power with customers as the orphan drug portfolio gains traction. However, the DIO of 92 days remains elevated, suggesting the company still holds a substantial inventory buffer, which could be a risk if product demand forecasts prove overly optimistic. The DPO of 104 days indicates the company is effectively using supplier credit to finance its operations, a favorable position for a growing firm.
Leverage Spike Amid Acquisition-Fueled Expansion
The debt-to-equity ratio increased to 0.62 in Q2 2026 from 0.14 a year ago, a material shift driven by a surge in total debt to $29.0M, as reported in the company's latest balance sheet.
While the leverage increase is notable, the interest coverage ratio of 11.89 in Q2 2026 suggests the company's operating income is now comfortably servicing its debt obligations, a stark reversal from the negative coverage ratios seen in prior quarters. The current debt level appears manageable given the trajectory of cash flow generation, but the rapid increase warrants monitoring to ensure it does not outpace the company's ability to generate earnings. The low absolute debt level relative to the company's market capitalization provides a cushion.
The Misleading Power of the P/E Ratio
The most commonly misapplied ratio for Eton is the trailing P/E, which at -355.53 is meaningless and obscures the company's true earnings trajectory, as it is based on historical losses during a heavy investment phase.
For a company in a rapid growth and inflection phase like Eton, the trailing P/E is a poor metric because it reflects past losses incurred to build the commercial infrastructure and launch the orphan drug portfolio. A more appropriate metric is the forward P/E or EV/EBITDA, which captures the market's expectation of future profitability. Analysts should instead focus on the sustainability of the gross margin expansion and the operating leverage demonstrated in recent quarters, as these are better indicators of the company's evolving earning power.