Ironwood Pharmaceuticals, Inc. (IRWD) Financial Ratios
19 years of historical data (2007–2025) · Healthcare · Drug Manufacturers - Specialty & Generic
EV/EBITDA
↑
8.38
-9% vs avg
5yr avg: 9.19
30Y Low7.6·High18.5
P/FCF
↓
4.95
↓-33% vs avg
5yr avg: 7.41
30Y Low4.7·High11.0
P/B Ratio
↑
N/A
—
5yr avg: 3.35
30Y Low3.2·High35.2
ROE
↓
N/A
—
5yr avg: -156.3%
30Y Low-305%·High170%
Debt/EBITDA
↑
4.96
↑+33% vs avg
5yr avg: 3.74
30Y Low1.7·High6.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
IRWD Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Ironwood Pharmaceuticals, Inc. trades at 25.5x earnings, 88% below its 5-year average of 211.1x, sitting at the 100th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.1x, the stock trades at a premium of 15%. On a free-cash-flow basis, the stock trades at 5.0x P/FCF, 33% below the 5-year average of 7.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $629M | $599M | $709M | $1.8B | $2.3B | $1.9B | $1.8B | $2.1B | $1.6B | $2.2B | $2.2B |
| Enterprise Value | $1.0B | $981M | $1.2B | $2.4B | $2.1B | $1.8B | $1.9B | $2.3B | $1.8B | $2.5B | $2.5B |
| P/E Ratio → | 25.47 | 22.47 | 805.45 | — | 12.91 | 3.63 | 17.26 | — | — | — | — |
| P/S Ratio | 2.12 | 2.02 | 2.02 | 4.02 | 5.62 | 4.63 | 4.70 | 4.85 | 4.56 | 7.49 | 8.14 |
| P/B Ratio | — | — | — | — | 3.54 | 3.16 | 29.21 | — | — | 226.79 | 33.44 |
| P/FCF | 4.95 | 4.72 | 6.86 | 9.71 | 8.44 | 7.33 | 10.96 | 587.29 | — | — | — |
| P/OCF | 4.95 | 4.72 | 6.85 | 9.69 | 8.43 | 7.32 | 10.84 | 193.63 | — | — | — |
P/E links to full P/E history page with 30-year chart
IRWD EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Ironwood Pharmaceuticals, Inc.'s enterprise value stands at 8.4x EBITDA, 9% below its 5-year average of 9.2x. The Healthcare sector median is 14.2x, placing the stock at a 41% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.31 | 3.47 | 5.42 | 5.04 | 4.28 | 4.93 | 5.44 | 5.26 | 8.41 | 9.31 |
| EV / EBITDA | 8.38 | 8.14 | 12.82 | — | 8.21 | 7.58 | 13.10 | 18.54 | — | — | — |
| EV / EBIT | 8.51 | 9.55 | 12.75 | 12.26 | 7.95 | 7.63 | 13.87 | 18.95 | — | — | — |
| EV / FCF | — | 7.73 | 11.80 | 13.11 | 7.56 | 6.78 | 11.49 | 659.18 | — | — | — |
IRWD Profitability
Margins and return-on-capital ratios measuring operating efficiency
Ironwood Pharmaceuticals, Inc. earns an operating margin of 40.1%. Operating margins have expanded from -213.5% to 40.1% over the past 3 years, signaling improving operational efficiency. ROIC of 54.0% represents excellent returns on invested capital.
Margins
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% | 97.9% | 98.6% | 99.7% | 83.0% | 99.2% | 68.4% | 90.6% | 93.5% | 99.3% |
| Operating Margin | 40.1% | 40.1% | 26.5% | -213.5% | 61.0% | 56.1% | 36.7% | 28.0% | -68.9% | -25.9% | -18.9% |
| Net Profit Margin | 8.1% | 8.1% | 0.3% | -226.4% | 42.6% | 127.7% | 27.3% | 5.0% | -81.5% | -39.2% | -29.8% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | -654.9% | 27.8% | 158.1% | 169.5% | — | — | -305.5% | -101.0% |
| ROA | 6.4% | 6.4% | 0.2% | -127.5% | 15.7% | 62.7% | 22.1% | 5.9% | -60.2% | -17.8% | -12.3% |
| ROIC | 54.0% | 54.0% | 28.7% | -205.8% | 43.0% | 56.8% | 68.5% | 87.8% | -109.0% | -17.3% | -12.9% |
| ROCE | 50.9% | 50.9% | 36.7% | -148.9% | 24.5% | 31.1% | 32.2% | 41.8% | -63.5% | -13.4% | -8.9% |
IRWD Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Ironwood Pharmaceuticals, Inc. carries a Debt/EBITDA ratio of 5.0x, which is highly leveraged (54% above the sector average of 3.2x). Net debt stands at $382M ($598M total debt minus $215M cash). Interest coverage of 3.1x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | 0.64 | 0.79 | 7.24 | — | — | 40.63 | 5.59 |
| Debt / EBITDA | 4.96 | 4.96 | 6.30 | — | 1.65 | 2.04 | 3.10 | 3.43 | — | — | — |
| Net Debt / Equity | — | — | — | — | -0.37 | -0.24 | 1.43 | — | — | 27.87 | 4.78 |
| Net Debt / EBITDA | 3.17 | 3.17 | 5.37 | — | -0.95 | -0.62 | 0.61 | 2.02 | — | — | — |
| Debt / FCF | — | 3.01 | 4.94 | 3.40 | -0.88 | -0.55 | 0.54 | 71.89 | — | — | — |
| Interest Coverage | 3.14 | 3.14 | 2.90 | 9.05 | 34.22 | 7.45 | 4.69 | 3.36 | -4.15 | -0.51 | -1.09 |
IRWD Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.13x means Ironwood Pharmaceuticals, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 0.84x to 1.13x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.13 | 1.13 | 4.69 | 0.84 | 30.58 | 4.61 | 15.41 | 7.50 | 2.23 | 4.72 | 4.17 |
| Quick Ratio | 1.13 | 1.13 | 4.69 | 0.84 | 30.53 | 4.61 | 15.41 | 7.48 | 2.23 | 4.71 | 4.16 |
| Cash Ratio | 0.89 | 0.89 | 2.28 | 0.33 | 25.71 | 3.84 | 11.32 | 4.33 | 1.45 | 3.35 | 3.35 |
| Asset Turnover | — | 0.75 | 1.00 | 0.94 | 0.37 | 0.37 | 0.70 | 1.06 | 1.04 | 0.49 | 0.39 |
| Inventory Turnover | — | — | — | — | 1.13 | — | — | 208.93 | — | 26.40 | 1.73 |
| Days Sales Outstanding | — | 57.61 | 85.05 | 106.45 | 102.64 | 100.60 | 114.65 | 99.89 | 85.24 | 100.54 | 86.41 |
IRWD Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Ironwood Pharmaceuticals, Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 3.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | — | — | — | — | — | — | — | — | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.9% | 4.5% | 0.1% | — | 7.7% | 27.5% | 5.8% | — | — | — | — |
| FCF Yield | 20.2% | 21.2% | 14.6% | 10.3% | 11.9% | 13.6% | 9.1% | 0.2% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 5.5% | 1.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 5.5% | 1.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $178M | $160M | $155M | $186M | $164M | $161M | $156M | $153M | $149M | $146M |
Peer Comparison
Compare IRWD with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 IRWDYou | $629M | 25.5 | 8.4 | 5.0 | 100.0% | 40.1% | — | 54.0% | 5.0 |
 PTGX | $7B | -56.1 | — | 131.9 | 97.3% | -343.6% | -20.2% | -21.8% | — |
 ARDX | $2B | -24.5 | — | — | 89.5% | -10.1% | -36.2% | -10.7% | — |
 CPIX | $83M | -29.3 | 33.0 | 17.3 | 85.0% | -6.3% | -12.0% | -8.6% | 4.1 |
 SUPN | $3B | -65.4 | 45.2 | 55.7 | 89.6% | -5.1% | -3.7% | -2.8% | 0.7 |
 PRGO | $1B | -0.9 | 7.0 | 9.2 | 35.1% | 8.1% | -39.3% | 3.7% | 5.8 |
 SHPH | $2M | -0.0 | — | — | — | — | -791.0% | -845.1% | — |
 VNDA | $355M | -1.6 | — | — | 94.0% | -70.0% | -50.9% | -32.2% | — |
 JAZZ | $14B | -38.7 | 23.8 | 10.9 | 88.2% | 5.3% | -8.5% | 2.1% | 7.1 |
 PCRX | $893M | 141.9 | 9.6 | 6.5 | 79.4% | 4.6% | 1.0% | 2.3% | 3.7 |
 ABBV | $407B | 97.1 | 16.7 | 22.8 | 70.2% | 32.8% | 6214.7% | 23.9% | 2.4 |
| Healthcare Median | — | 22.1 | 14.2 | 18.4 | 63.9% | -4.4% | -33.2% | -11.7% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 19 years · Updated daily
Consensus-Based Analysis Tools
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Check Valuation
Historical Returns
10-year return with dividends reinvested.
Calculate
DCA Calculator
See how regular investing compounds over time.
Run Numbers
Peer Comparison
Compare growth, multiples, and margins vs sector.
Compare
IRWD — Frequently Asked Questions
Quick answers to the most common questions about buying IRWD stock.
What is Ironwood Pharmaceuticals, Inc.'s P/E ratio?
Ironwood Pharmaceuticals, Inc.'s current P/E ratio is 25.5x. The historical average is 14.1x. This places it at the 100th percentile of its historical range.
What is Ironwood Pharmaceuticals, Inc.'s EV/EBITDA?
Ironwood Pharmaceuticals, Inc.'s current EV/EBITDA is 8.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.4x.
Is IRWD stock overvalued?
Based on historical data, Ironwood Pharmaceuticals, Inc. is trading at a P/E of 25.5x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What are Ironwood Pharmaceuticals, Inc.'s profit margins?
Ironwood Pharmaceuticals, Inc. has 100.0% gross margin and 40.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Ironwood Pharmaceuticals, Inc. have?
Ironwood Pharmaceuticals, Inc.'s Debt/EBITDA ratio is 5.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.