Latest Ratios: P/E Ratio -3.1x · EV/EBITDA N/A · ROE -55.6%. (2013–2025 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 | $727M | $2.9B | $1.7B | $536M | $552M | $163M | $309M | $272M | $1.2B | $931M | $596M |
| Enterprise Value | $143M | $2.3B | $1.4B | $368M | $501M | $42M | $154M | $157M | $1.1B | $792M | $446M |
| P/E Ratio → | -3.12 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 17.02 | 67.10 | 15.79 | 4.73 | 151.27 | 3.97 | 15.38 | 16.99 | 84.50 | 251.25 | 401.51 |
| P/B Ratio | 1.21 | 5.45 | 8.16 | 13.52 | — | 5.01 | 3.41 | 3.79 | 16.60 | 6.66 | 4.42 |
| 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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 53.43 | 13.24 | 3.24 | 137.33 | 1.03 | 7.65 | 9.82 | 73.09 | 213.71 | 300.35 |
| 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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 79.3% | 79.3% | 100.0% | 100.0% | 100.0% | 100.0% | -552.2% | -997.6% | -832.6% | -2041.2% | 73.5% |
| Operating Margin | -504.1% | -504.1% | -101.9% | -60.0% | -4459.3% | -310.1% | -763.9% | -1303.4% | -1106.7% | -2769.4% | -3725.7% |
| Net Profit Margin | -478.3% | -478.3% | -89.6% | -50.8% | -4434.7% | -298.4% | -746.7% | -1211.5% | -1017.4% | -2754.7% | -3730.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -55.6% | -55.6% | -77.9% | -145.1% | — | -198.5% | -184.8% | -267.2% | -137.6% | -74.3% | -38.4% |
| ROA | -41.3% | -41.3% | -30.9% | -27.3% | -91.6% | -50.3% | -53.2% | -66.7% | -61.4% | -58.9% | -33.6% |
| ROIC | — | — | — | — | — | — | — | — | — | -10056.9% | — |
| ROCE | -54.9% | -54.9% | -67.0% | -83.2% | -149.5% | -84.4% | -94.6% | -125.5% | -97.2% | -65.2% | -35.2% |
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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.12 | 0.81 | — | 0.92 | 0.32 | 0.45 | 0.14 | 0.02 | 0.00 |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -1.11 | -1.32 | -4.25 | — | -3.71 | -1.71 | -1.60 | -2.24 | -0.99 | -1.11 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | -9586.06 | — | -7251.05 | -17065.17 | -165.34 |
Net cash position: cash ($602M) exceeds total debt ($18M)
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 | 6.47 | 6.47 | 2.89 | 1.26 | 1.38 | 2.53 | 1.90 | 1.57 | 1.56 | 7.67 | 12.50 |
| Quick Ratio | 6.47 | 6.47 | 2.89 | 1.26 | 1.38 | 2.53 | 1.90 | 1.57 | 1.56 | 7.67 | 12.50 |
| Cash Ratio | 6.33 | 6.33 | 2.72 | 1.07 | 1.24 | 2.35 | 1.52 | 1.25 | 1.34 | 7.26 | 12.36 |
| Asset Turnover | — | 0.07 | 0.31 | 0.41 | 0.02 | 0.20 | 0.07 | 0.06 | 0.05 | 0.02 | 0.01 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 10.90 | 4.79 | 67.93 | — | — | 545.40 | 456.74 | 253.23 | 98.54 | — |
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 | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| 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 | — | $169M | $138M | $106M | $79M | $52M | $39M | $34M | $29M | $27M | $23M |
Includes 30+ ratios · 13 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 WVE stock.
Wave Life Sciences Ltd.'s current P/E ratio is -3.1x. This places it at the 50th percentile of its historical range.
Wave Life Sciences Ltd.'s return on equity (ROE) is -55.6%. The historical average is -132.9%.
Based on historical data, Wave Life Sciences Ltd. is trading at a P/E of -3.1x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Wave Life Sciences Ltd. has 79.3% gross margin and -504.1% operating margin.
Key Metrics
Top Statement Risk
Cash burn eroding financial runway
Metrics are mathematically derived from official filings.
Volatility Driven by Milestone Revenue
As reported in financial statements, gross margins fluctuate wildly between 74.8% and 100%, a pattern indicating that profitability is dominated by the timing of non-recurring licensing milestones rather than a sustainable operational cost structure.
The extreme variance in gross margin, reaching 100% in five of the last ten quarters, suggests revenue is frequently comprised of pure licensing income with no associated cost of goods sold. This makes the metric a poor indicator of underlying earning power, masking the reality of a high, fixed-cost operating structure that generates consistent net losses.
Negligible Leverage Amidst Burn
Based on reported figures, Wave's Debt-to-Equity ratio surged from 0.03 in Q1 2026 to 0.10 in Q2 2026, a rapid increase that, while still low in absolute terms, signals a nascent shift toward debt financing as operational cash reserves deplete.
The company maintains a conservatively leveraged balance sheet, with a D/E ratio that was as low as 0.03 recently. However, the recent uptick to 0.10, alongside the near-total absence of interest coverage data due to operating losses, suggests any incremental debt would be taken on from a position of financial weakness. This minimal leverage is a strength but could quickly become a vulnerability if the cash burn persists.
Strong Cushion Eroding Rapidly
According to recent SEC filings, Wave's Current Ratio improved to a robust 7.13 in Q2 2026, yet this follows a 39% decline in the company's cash balance over three quarters, highlighting that the liquidity position is strong but not static under the current burn rate.
A Current Ratio above 7 indicates a substantial buffer to meet short-term obligations, a critical feature for a pre-revenue biotech. However, the stability of this ratio is illusory; it is sustained by a dwindling cash asset base. Under a severe stress scenario where funding access tightens, the trajectory of cash consumption becomes the primary determinant of the company's financial survival, not the static ratio.
Deeply Negative Returns Signal Value Destruction
As reported in financial statements, Wave's Return on Equity turned sharply negative at -14.4% in Q2 2026, a reversal from a 16.3% positive spike in Q4 2024, demonstrating the company's inability to generate consistent positive returns on invested capital.
The volatile and predominantly negative ROE and ROIC trends indicate that the company is destroying shareholder value on a recurring basis. The single profitable quarter (Q4 2024) appears to be an anomaly driven by a large, non-recurring revenue event. The fundamental trend is one of capital consumption, where the deployed capital generates persistent operating losses rather than returns.
P/B Ratio Misleads on Asset-Light Model
The Price-to-Book (P/B) ratio of 1.68, a seemingly moderate multiple, is the most commonly misapplied metric for Wave as it obscures the reality of a negative accumulated deficit exceeding $1.4 billion, rendering book value an economically meaningless anchor for valuation.
In a typical industrial firm, a P/B of 1.68 suggests a premium over liquidation value. For Wave, this multiple is misleading because the company's book equity has been eroded by years of operating losses, leaving a large negative accumulated deficit. The ratio is therefore not a measure of asset value but of market capitalization relative to a depleted and negative equity base, making alternative metrics like EV/Revenue or risk-adjusted pipeline valuation far more appropriate.