Latest Ratios: P/E Ratio -1.6x · EV/EBITDA N/A · ROE -50.9%. (2004–2025 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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $355M | $520M | $279M | $243M | $421M | $893M | $725M | $900M | $1.4B | $680M | $693M |
| Enterprise Value | $283M | $448M | $189M | $116M | $297M | $853M | $678M | $870M | $1.3B | $646M | $653M |
| P/E Ratio → | -1.61 | — | — | 96.79 | 67.18 | 27.05 | 31.29 | 7.78 | 54.44 | — | — |
| P/S Ratio | 1.64 | 2.41 | 1.40 | 1.26 | 1.66 | 3.32 | 2.92 | 3.96 | 7.18 | 4.12 | 4.75 |
| P/B Ratio | 1.08 | 1.59 | 0.52 | 0.45 | 0.80 | 1.77 | 1.60 | 2.19 | 5.03 | 5.18 | 5.28 |
| P/FCF | — | — | — | 19.56 | 13.45 | 14.03 | 14.51 | 20.03 | 300.15 | — | — |
| P/OCF | — | — | — | 18.97 | 13.17 | 13.91 | 14.01 | 19.59 | 46.22 | — | — |
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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.07 | 0.95 | 0.60 | 1.17 | 3.18 | 2.73 | 3.83 | 6.86 | 3.92 | 4.47 |
| EV / EBITDA | — | — | — | — | 32.80 | 18.96 | 22.52 | 33.83 | 53.66 | — | — |
| EV / EBIT | — | — | — | — | 46.96 | 20.24 | 21.41 | 38.12 | 60.96 | — | — |
| EV / FCF | — | — | — | 9.38 | 9.49 | 13.41 | 13.56 | 19.35 | 286.94 | — | — |
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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 94.0% | 94.0% | 94.3% | 92.3% | 90.5% | 90.5% | 90.6% | 89.2% | 89.4% | 89.2% | 83.1% |
| Operating Margin | -70.0% | -70.0% | -20.5% | -7.2% | 2.5% | 15.7% | 11.0% | 10.0% | 11.3% | -10.2% | -12.7% |
| Net Profit Margin | -102.0% | -102.0% | -9.5% | 1.3% | 2.5% | 12.3% | 9.4% | 50.9% | 13.1% | -9.4% | -12.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -50.9% | -50.9% | -3.5% | 0.5% | 1.2% | 6.9% | 5.4% | 33.7% | 12.4% | -11.9% | -13.6% |
| ROA | -38.5% | -38.5% | -2.9% | 0.4% | 1.0% | 5.9% | 4.6% | 28.3% | 9.4% | -7.5% | -8.5% |
| ROIC | -32.2% | -32.2% | -7.0% | -2.5% | 1.1% | 7.3% | 5.2% | 5.8% | 10.4% | -13.4% | -16.1% |
| ROCE | -33.6% | -33.6% | -7.3% | -2.5% | 1.2% | 8.5% | 6.1% | 6.5% | 10.5% | -11.5% | -11.5% |
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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.04 | 0.04 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.04 | — | — | — |
| Debt / EBITDA | — | — | — | — | 1.23 | 0.27 | 0.45 | 0.57 | — | — | — |
| Net Debt / Equity | — | -0.22 | -0.17 | -0.23 | -0.23 | -0.08 | -0.10 | -0.07 | -0.22 | -0.26 | -0.31 |
| Net Debt / EBITDA | — | — | — | — | -13.67 | -0.88 | -1.58 | -1.19 | -2.47 | — | — |
| Debt / FCF | — | — | — | -10.18 | -3.96 | -0.62 | -0.95 | -0.68 | -13.21 | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($85M) exceeds total debt ($13M)
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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.39 | 2.39 | 4.39 | 4.94 | 5.68 | 6.43 | 6.21 | 5.95 | 5.64 | 2.41 | 3.46 |
| Quick Ratio | 2.38 | 2.38 | 4.37 | 4.92 | 5.67 | 6.41 | 6.19 | 5.93 | 5.62 | 2.40 | 3.45 |
| Cash Ratio | 1.82 | 1.82 | 3.75 | 4.43 | 5.11 | 5.82 | 5.58 | 5.25 | 4.85 | 2.04 | 2.81 |
| Asset Turnover | — | 0.44 | 0.30 | 0.30 | 0.40 | 0.45 | 0.47 | 0.47 | 0.58 | 0.80 | 0.69 |
| Inventory Turnover | 7.04 | 7.04 | 6.56 | 10.90 | 20.34 | 25.00 | 18.25 | 21.48 | 20.63 | 21.25 | 31.72 |
| Days Sales Outstanding | — | 92.18 | 86.49 | 64.71 | 48.08 | 44.11 | 44.18 | 42.36 | 54.40 | 38.92 | 50.66 |
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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 1.0% | 1.5% | 3.7% | 3.2% | 12.9% | 1.8% | — | — |
| FCF Yield | — | — | — | 5.1% | 7.4% | 7.1% | 6.9% | 5.0% | 0.3% | — | — |
| Buyback Yield | 0.0% | 0.0% | 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% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $59M | $58M | $58M | $57M | $57M | $55M | $55M | $53M | $45M | $43M |
Patent Litigation and Exclusivity
According to current market data, Vanda trades at a P/S ratio of 1.64, a valuation that appears to reflect a significant litigation discount compared to CNS peers, suggesting investors are pricing in substantial uncertainty regarding the durability of its core HETLIOZ and Fanapt revenue streams.
The negative P/E of -1.61 underscores that the market is currently valuing the company based on its remaining cash and potential pipeline optionality rather than earnings power. This valuation approach implies that the market views the current business model as a binary outcome of patent litigation rather than a sustainable, growth-oriented pharmaceutical enterprise.
Based on reported financial statements, Vanda's ROIC has trended into negative territory, reaching -15.4% in 2026Q1, which indicates that the company is currently destroying rather than compounding invested capital as it struggles to generate returns that exceed its cost of capital.
The persistent decline in ROIC suggests that the capital deployed into R&D and legal defense is not yielding the expected commercial returns. Investors should monitor whether the recent expansion of Fanapt into Bipolar I can reverse this trend or if the capital intensity of the business model will continue to erode shareholder value.
As reported in quarterly filings, Vanda's asset turnover ratio remains exceptionally low at 0.11 in 2026Q1, highlighting a structural inefficiency in converting the company's asset base into meaningful revenue, which is further complicated by erratic shifts in the cash conversion cycle.
The fluctuation in DSO, which reached 97 days in 2026Q1, suggests potential friction in the collection process or changes in payer mix that may be impacting cash flow timing. This lack of operational velocity indicates that the company's commercial infrastructure is not yet optimized for the scale required to offset its high fixed-cost base.
Based on recent balance sheet data, Vanda's current ratio has declined from 4.94 in 2023Q4 to 2.16 in 2026Q1, signaling a tightening liquidity position that warrants close monitoring as the company continues to burn cash to fund its ongoing legal and operational requirements.
While a current ratio of 2.16 still suggests an adequate short-term cushion, the rapid depletion of the cash balance indicates that the company's runway is shortening. If the current rate of cash burn persists without a corresponding increase in revenue from new indications, the company may face future pressure to seek external financing.
Investors frequently misapply traditional P/E ratios to Vanda, which obscures the company's true nature as a litigation-driven specialty pharma entity where current net losses are a deliberate, albeit risky, investment in protecting long-term intellectual property assets rather than a sign of operational failure.
Using P/E as a primary valuation tool for Vanda is misleading because it ignores the massive, non-recurring legal expenses that currently distort the bottom line. A more appropriate metric would be an adjusted EV/Revenue or a probability-weighted NPV of the pipeline, which accounts for the potential value of the niche CNS indications the company is defending.
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying VNDA stock.
Vanda Pharmaceuticals Inc.'s current P/E ratio is -1.6x. The historical average is 43.5x.
Vanda Pharmaceuticals Inc.'s return on equity (ROE) is -50.9%. The historical average is -42.4%.
Based on historical data, Vanda Pharmaceuticals Inc. is trading at a P/E of -1.6x. Compare with industry peers and growth rates for a complete picture.
Vanda Pharmaceuticals Inc. has 94.0% gross margin and -70.0% operating margin.