Latest Ratios: P/E Ratio -34.7x · EV/EBITDA N/A · ROE -58.1%. (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 | $43.9B | $15.1B | $7.3B | $3.2B | $1.9B | $1.8B | $2.6B | — | — | — |
| Enterprise Value | $43.7B | $14.9B | $6.9B | $2.6B | $1.8B | $1.8B | $2.6B | — | — | — |
| P/E Ratio → | -34.73 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | — | — | — | 280.24 | 54.28 | 62.35 | 61.34 | — | — | — |
| P/B Ratio | 24.08 | 9.28 | 3.24 | 1.78 | 2.80 | 3.04 | 5.55 | — | — | — |
| 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 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | — | — | 227.71 | 51.54 | 60.93 | 59.68 | — | — | — |
| 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 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | — | — | — | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | — |
| Operating Margin | — | — | — | -4207.1% | -730.0% | -639.7% | -257.5% | -108.2% | -200.0% | — |
| Net Profit Margin | — | — | — | -3768.3% | -703.0% | -636.6% | -251.6% | -95.2% | -207.2% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -58.1% | -58.1% | -29.3% | -34.8% | -38.6% | -34.7% | -34.5% | -38.3% | -82.6% | -687.0% |
| ROA | -46.1% | -46.1% | -26.0% | -30.4% | -32.1% | -28.7% | -27.5% | -24.4% | -45.0% | -206.5% |
| ROIC | -54.3% | -54.3% | -33.6% | -40.5% | -33.7% | -29.3% | -30.8% | -49.8% | -266.8% | — |
| ROCE | -53.0% | -53.0% | -32.0% | -36.5% | -36.2% | -31.4% | -31.7% | -34.1% | -54.7% | -416.2% |
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 | 0.10 | 0.10 | 0.06 | 0.05 | 0.09 | 0.11 | 0.07 | — | 0.00 | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.14 | -0.18 | -0.33 | -0.14 | -0.07 | -0.15 | -0.11 | -0.72 | -2.00 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | -45.69 | -45.69 | — | -1450.79 | — | -15589.92 | -1527.59 | -489.92 | -359.25 | -301.20 |
Net cash position: cash ($384M) exceeds total debt ($159M)
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 | 7.14 | 7.14 | 14.20 | 13.06 | 10.65 | 9.77 | 9.63 | 3.11 | 2.80 | 1.24 |
| Quick Ratio | 7.14 | 7.14 | 14.20 | 13.06 | 10.65 | 9.77 | 9.63 | 3.11 | 2.58 | 1.24 |
| Cash Ratio | 6.97 | 6.97 | 13.97 | 12.88 | 10.40 | 9.56 | 9.34 | 2.85 | 2.28 | 1.19 |
| Asset Turnover | — | — | — | 0.01 | 0.04 | 0.04 | 0.08 | 0.23 | 0.12 | — |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | 39.53 | 48.21 | 73.63 | 54.29 | 63.73 | 132.19 | — |
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 | — | — | — | — | — | — | — | — | — | — |
| 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 | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 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% | — | — | — |
| Shares Outstanding | — | $190M | $168M | $113M | $81M | $73M | $67M | $36M | $36M | $36M |
Includes 30+ ratios · 9 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying RVMD stock.
Revolution Medicines, Inc.'s current P/E ratio is -34.7x. This places it at the 50th percentile of its historical range.
Revolution Medicines, Inc.'s return on equity (ROE) is -58.1%. The historical average is -43.9%.
Based on historical data, Revolution Medicines, Inc. is trading at a P/E of -34.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Key Metrics
Top Statement Risk
R&D cost escalation
Metrics are mathematically derived from official filings.
Deepening Losses with No Revenue
According to reported financials, RVMD's net margin remains deeply negative, with net losses widening to $644.4M in 2026Q2, reflecting escalating R&D costs and no top-line revenue.
The absence of revenue makes traditional margin analysis moot; instead, the focus is on the magnitude and trajectory of operating losses. R&D expenses surged 235% from 2024Q1 to 2026Q2, driving net margin to -644.4% in 2026Q2 (based on net loss as a percentage of zero revenue, though revenue is nil). This indicates a deliberate heavy investment phase, but the pace of cost escalation suggests that profitability is not imminent and may require substantial future revenue to offset.
Return on Capital Decaying Rapidly
ROIC deteriorated from -7.7% in 2024Q1 to -19.3% in 2026Q2, per financial statements, indicating that capital invested is generating increasingly negative returns as R&D spending accelerates.
The negative ROIC is expected for a pre-revenue biotech, but the trend is concerning: the return on invested capital is becoming more negative at a faster rate, suggesting that each dollar invested is yielding less future value. This may indicate that the company is scaling R&D without commensurate progress in its pipeline, or that the cost of advancing multiple programs is rising. Investors should monitor whether any clinical milestones can reverse this decay.
Working Capital Efficiency Masked by Cash Pile
Current ratio remains high at 11.38 in 2026Q2, per balance sheet data, but with quarterly cash burn of $741.5M, the liquidity buffer may only cover about one quarter of operations.
The high current ratio is misleading because it is driven by a large cash balance relative to current liabilities, but the cash burn rate is accelerating. The cash conversion cycle is not meaningful due to lack of revenue, but the working capital swings, as noted in cash flow analysis, indicate that timing of payments can significantly impact quarterly cash flows. The efficiency of capital deployment is poor, as most cash is consumed by R&D with no revenue generation.
Leverage Rising as Debt Nearly Quadruples
Debt-to-equity increased from 0.05 in 2024Q1 to 0.25 in 2026Q2, per balance sheet data, while total debt rose from $88.0M to $641.9M, indicating a strategic shift toward debt financing.
The increase in leverage is notable for a biotech that typically relies on equity financing. Interest coverage is negative (-26.1 in 2026Q2) because the company has no operating income, but the absolute debt level is still manageable relative to the $2.6B equity base. However, the rising debt may indicate that equity financing is becoming more dilutive or that the company is seeking to extend its runway without further dilution. Investors should monitor whether debt covenants or repayment obligations become a constraint.
Liquidity Buffer Thins Despite High Current Ratio
Cash rose to $815.4M in 2026Q2, per balance sheet data, but with quarterly operating cash burn of $741.5M, the current ratio of 11.38 masks a runway of roughly one quarter.
The current ratio appears robust, but it is a snapshot that does not account for the rapid cash consumption. The company's cash position is sufficient for only about one quarter of operations at the current burn rate, which is a critical risk. This suggests that the company will need to raise additional capital soon, either through equity or debt, which could be dilutive or increase leverage. The liquidity position is adequate in the short term but vulnerable to any delays in financing.
Misapplied Metric: Current Ratio
The current ratio is commonly misapplied to pre-revenue biotechs like RVMD, as it overstates liquidity by ignoring the rapid cash burn, per reported figures.
For a company with no revenue, the current ratio is not a meaningful measure of liquidity because it does not reflect the sustainability of cash flows. A more appropriate metric is the cash runway, which is calculated by dividing cash by quarterly operating burn. In RVMD's case, the current ratio of 11.38 suggests ample liquidity, but the cash runway is only about one quarter, indicating a severe liquidity risk. Investors should focus on cash burn and runway rather than current ratio when assessing biotech liquidity.