Latest Ratios: P/E Ratio -2.3x · EV/EBITDA N/A · ROE -146.8%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $565M | $516M | $346M | $806M | $1.8B | — | — | — |
| Enterprise Value | $619M | $570M | $205M | $778M | $1.6B | — | — | — |
| P/E Ratio → | -2.32 | — | — | — | — | — | — | — |
| P/S Ratio | 122.05 | 111.44 | 116.10 | — | — | — | — | — |
| P/B Ratio | 3.85 | 4.27 | 2.26 | 6.06 | 5.71 | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 122.97 | 68.60 | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | -58.1% | -58.1% | 100.0% | — | — | — | 42.8% | — |
| Operating Margin | -4498.1% | -4498.1% | -6787.4% | — | — | — | -17.9% | — |
| Net Profit Margin | -4342.4% | -4342.4% | -6566.6% | — | — | — | -65.5% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | -146.8% | -146.8% | -136.9% | -88.2% | -43.8% | -121.1% | -19.6% | -182.1% |
| ROA | -62.8% | -62.8% | -79.7% | -71.5% | -36.8% | -92.7% | -10.7% | -29.1% |
| ROIC | -168.3% | -168.3% | -260.5% | -117.0% | -78.8% | -207.6% | — | — |
| ROCE | -73.8% | -73.8% | -102.0% | -87.0% | -40.4% | -60.5% | -5.1% | -156.4% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.96 | 0.96 | 0.27 | 0.10 | 0.09 | 0.04 | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.44 | -0.93 | -0.21 | -0.50 | -0.73 | -1.10 | -6.23 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | -1.99 |
| Debt / FCF | — | — | — | — | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.84 | 4.84 | 5.58 | 2.53 | 11.10 | 4.67 | 2.75 | 1.19 |
| Quick Ratio | 4.84 | 4.84 | 5.58 | 2.53 | 11.10 | 4.67 | 2.75 | 1.19 |
| Cash Ratio | 4.74 | 4.74 | 5.02 | 2.16 | 11.00 | 4.65 | 2.74 | 1.18 |
| Asset Turnover | — | 0.01 | 0.01 | — | — | — | 0.10 | — |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $149M | $119M | $91M | $97M | $96M | $96M | $96M |
Includes 30+ ratios · 7 years · Updated daily
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Quick answers to the most common questions about buying PRME stock.
Prime Medicine, Inc.'s current P/E ratio is -2.3x. This places it at the 50th percentile of its historical range.
Prime Medicine, Inc.'s return on equity (ROE) is -146.8%. The historical average is -105.5%.
Based on historical data, Prime Medicine, Inc. is trading at a P/E of -2.3x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Prime Medicine, Inc. has -58.1% gross margin and -4498.1% operating margin.
Key Metrics
Top Statement Risk
Rapid equity erosion and leverage spike
Metrics are mathematically derived from official filings.
Valuation Reflects Speculative Pipeline Bet
Prime Medicine's P/S ratio of 140.77, as reported in current valuation multiples, is astronomically high relative to its minimal revenue, indicating the market is pricing in significant future pipeline success rather than current financial performance.
The P/B ratio of 4.44 appears elevated for a company with a rapidly eroding equity base, suggesting the market is valuing the company's intellectual property and pipeline potential far above its tangible book value. The negative P/E and lack of forward multiples confirm that traditional earnings-based valuation is irrelevant at this stage, with the stock trading purely on speculative future cash flows.
Structural Losses Overshadow Revenue
Prime Medicine's operating margin has been consistently negative, ranging from -20.3% to -59.2% over the last ten quarters, demonstrating that its cost structure is fundamentally misaligned with its early-stage revenue generation.
The gross margin volatility, swinging from 100% to -116.8%, indicates that the company's cost of goods sold is not yet a meaningful driver of profitability, with operating losses dominated by R&D and SG&A expenses. The net margin's deep negative territory, reaching -251.3% in 2024Q3, underscores that the company is consuming capital at a rate far exceeding its ability to generate revenue, a hallmark of pre-commercial biotech operations.
Capital Erosion Accelerates
Prime Medicine's ROIC has been persistently negative, ranging from -19.0% to -53.4% over the last ten quarters, indicating that the company is destroying, not creating, value from its invested capital.
The negative ROIC trend, coupled with a collapsing equity base, suggests that the company's heavy R&D investment is not yet translating into any measurable return. The ROE's deep negative readings, reaching -72.3% in 2026Q2, confirm that shareholder capital is being rapidly consumed by operating losses, with no signs of a path to positive returns in the near term.
Leverage Spike Signals Funding Pressure
Prime Medicine's debt-to-equity ratio has surged from 0.18 in 2024Q1 to 2.83 in 2026Q2, indicating a fundamental shift in the company's capital structure towards necessity-driven borrowing as its equity base erodes.
The rapid increase in leverage, coupled with the absence of interest coverage data, suggests that the company may be taking on debt to fund its operations as its cash runway narrows. This shift from a conservative to a highly leveraged balance sheet increases financial risk and may limit future financing options, warranting close monitoring of covenant compliance and refinancing risk.
Liquidity Buffer Narrows Rapidly
Prime Medicine's current ratio has compressed from 8.91 in 2024Q1 to 3.05 in 2026Q2, indicating a rapidly narrowing liquidity buffer against its substantial quarterly cash burn.
The decline in the current ratio, while still above 1.0, suggests that the company's ability to cover its short-term obligations is deteriorating as its cash position dwindles. The absence of inventory dependence, as indicated by the quick ratio equaling the current ratio, means that the liquidity position is entirely dependent on cash and receivables, which are under pressure from the ongoing cash burn.
P/S Ratio Misleads on Value
The P/S ratio of 140.77 is the most commonly misapplied metric for Prime Medicine, as it obscures the company's pre-commercial status and massive cash burn, making it appear overvalued on a revenue basis while ignoring its pipeline optionality.
For a pre-revenue biotech like Prime Medicine, the P/S ratio is misleading because it compares the company's market capitalization to its minimal, volatile revenue, which is not indicative of its long-term earning power. A more appropriate metric would be a risk-adjusted net present value (rNPV) analysis of its pipeline candidates, which would better capture the speculative value of its technology platform and potential future cash flows.