Ironwood Pharmaceuticals, Inc. (IRWD) P/E Ratio History
UndervaluedTrading at 25.5x vs 5Y avg 69.2x · 79th percentile · Below historical baseline · Data 2019–2026
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P/E Ratio Analysis
As of June 23, 2026, Ironwood Pharmaceuticals, Inc. (IRWD) trades at a price-to-earnings ratio of 25.5x, with a stock price of $3.82 and trailing twelve-month earnings per share of $0.61.
The current P/E is 63% below its 5-year average of 69.2x. Over the past five years, IRWD's P/E has ranged from a low of 3.6x to a high of 868.6x, placing the current valuation at the 79th percentile of its historical range.
Compared to the Healthcare sector median P/E of 22.1x, IRWD trades at a 15% premium to its sector peers. The sector includes 233 companies with P/E ratios ranging from 0.0x to 194.5x.
Relative to the broader market, IRWD trades roughly in line with the S&P 500 median P/E of 24.3x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our IRWD DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
IRWD Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
IRWD P/E vs Peers
Therapy-focused branded biopharma peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $893M | 141.9 | -Best | +107%Best | |
| $407B | 97.1Lowest | -Best | -1% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
IRWD Historical P/E Data (2019–2026)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2026 Q1 | - | $3.51 | $0.60 | 5.9x | -92% |
| FY2025 Q4 | Dec 31 2025 | $3.37 | $0.13 | 26.5x | -62% |
| FY2025 Q3 | - | $1.31 | $0.15 | 8.5x | -88% |
| FY2024 Q4 | - | $4.43 | $0.01 | 868.6x | +1155% |
| FY2024 Q2 | Jun 30 2024 | $6.52 | $0.04 | 162.2x | +134% |
| FY2023 Q1 | Mar 31 2023 | $10.52 | $0.99 | 10.6x | -85% |
| FY2022 Q4 | Dec 31 2022 | $12.39 | $0.94 | 13.2x | -81% |
| FY2022 Q3 | Sep 30 2022 | $10.36 | $0.93 | 11.1x | -84% |
| FY2022 Q2 | - | $11.53 | $1.00 | 11.5x | -83% |
| FY2022 Q1 | - | $12.58 | $3.18 | 4.0x | -94% |
| FY2021 Q4 | Dec 31 2021 | $11.66 | $3.23 | 3.6x | -95% |
| FY2021 Q3 | - | $13.06 | $3.25 | 4.0x | -94% |
| FY2021 Q2 | Jun 30 2021 | $12.87 | $3.12 | 4.1x | -94% |
| FY2021 Q1 | Mar 31 2021 | $11.18 | $0.89 | 12.6x | -82% |
| FY2020 Q4 | - | $11.39 | $0.66 | 17.3x | -75% |
| FY2020 Q3 | Sep 30 2020 | $8.99 | $0.69 | 13.0x | -81% |
| FY2020 Q2 | - | $10.32 | $0.61 | 16.9x | -76% |
| FY2020 Q1 | - | $10.09 | $0.53 | 19.0x | -72% |
| FY2019 Q4 | - | $13.31 | $0.13 | 102.4x | +48% |
Average P/E for displayed period: 69.2x
Intrinsic Valuation
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Historical Returns
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DCA Calculator
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Peer Comparison
Compare growth, multiples, and margins vs sector.
IRWD — Frequently Asked Questions
Quick answers to the most common questions about buying IRWD stock.
What is IRWD's P/E ratio?
Ironwood Pharmaceuticals, Inc. (IRWD) trailing twelve-month P/E ratio is 25.5x, based on TTM diluted EPS of $0.61. The 5-year average P/E is 69.2x and the historical range spans 3.6x to 868.6x.
Is IRWD stock overvalued or undervalued?
IRWD trades at 25.5x P/E, below its 5-year average of 69.2x. At the 79th percentile of its historical range (3.6x–868.6x), the stock is priced at a discount to its own history.
Is IRWD stock expensive?
No, IRWD is not expensive on a historical basis. The current P/E of 25.5x is below the 5-year average of 69.2x and sits at the 79th percentile of its valuation range.
What is IRWD's historical P/E range?
Over the past 5 years, IRWD's P/E ratio has ranged from 3.6x to 868.6x, with a median of 12.6x and an average of 69.2x. The current P/E of 25.5x places the stock at the 79th percentile of this range. Full historical data spans 2019–2026.
How does IRWD's P/E compare to the S&P 500?
IRWD trades at 25.5x P/E versus the S&P 500 median of 24.3x. The 5% premium to the market typically reflects higher expected earnings growth or quality.
How does IRWD's valuation compare to Healthcare peers?
Ironwood Pharmaceuticals, Inc. P/E of 25.5x compares to the Healthcare sector median of 22.1x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is IRWD's PEG ratio?
IRWD PEG ratio is N/A. PEG normalises P/E by growth and helps compare stocks with different earnings trajectories.
What is IRWD's earnings yield?
IRWD earnings yield is 3.93%, the inverse of its 25.5x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.