Innoviva, Inc. (INVA)
Valuation Overview•Is Innoviva, Inc. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
High-quality fundamentals with a strong composite quality score of 83/100, backed by robust profitability and solvency.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: High-quality compounder, with growth as the only relative weakness.
Wall Street is highly bullish, projecting significant upside. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
INVA exhibits elite business quality, driven by exceptional capital efficiency and highly lucrative margins. This is backed by a fortress balance sheet, holding significant net cash ($282M) and minimal debt risk.
The company demonstrates solid revenue growth (8.7% 3Y CAGR) paired with robust earnings compounding (11.7% EPS 3Y CAGR). Operating efficiency remains adequate with margins around 14.8%.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $98.0M | +18.5% | +8.7% | +4.8% | +22.9% | |
| EBITDA | $38.2M | — | -1.4% | — | — | |
| Net Income | $186.6M | +1059.2% | +8.2% | — | — | |
| EPS (Diluted) | $2.22 | +816.7% | +11.7% | +10.3% | — | |
| Free Cash Flow | $34.8M | +3.9% | -1.0% | -9.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 76.2% | 82.8% | 88.8% | 94.3% |
| Operating Margin | 14.8% | 40.6% | 56.0% | 72.7% |
| Net Margin | 118.9% | 42.7% | 52.1% | 64.5% |
| FCF Margin | 42.6% | 48.0% | 59.5% | 68.5% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.43 | $0.44 | +2.3% | ||
| Q1'26 | $0.34 | $1.94 | +470.6% | ||
| Q4'25 | $0.46 | $1.08 | +134.8% | ||
| Q3'25 | $0.57 | $0.77 | +35.1% | ||
| Q2'25 | $0.29 | $0.25 | -13.8% | ||
| Q1'25 | $0.34 | $0.57 | +67.6% | ||
| Q4'24 | $0.27 | $0.02 | -92.6% | ||
| Q3'24 | $0.24 | $0.68 | +183.3% |
Total return is +4.8% (1Y), lagging the benchmark by -20.2%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +13.2% | +3.9% | — |
| 1Y | +4.8% | -20.2% | — |
| 3YCAGR | +20.6% | +1.3% | — |
| 5YCAGR | +11.0% | -0.7% | — |
| 10YCAGR | +7.2% | -6.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Innoviva, Inc. (INVA) valuation, health, and returns.
Innoviva, Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +66.2% upside to DCF intrinsic value of $37.37)
Innoviva, Inc. has multiple valuation anchors: DCF Intrinsic Value: $37.37 | Peer Relative Fair Value: $63.11 | Wall Street Analyst Target: $37.00 (implying +64.5% upside). A convergence of these signals offers higher conviction.
Innoviva, Inc. displays excellent financial health with a composite quality score of 83/100, supported by a Altman Z-Score of 3.2 (safe zone), Piotroski F-Score of 5/9, Return on Invested Capital (ROIC) of 14.2%.
Innoviva, Inc. does not return material capital to shareholders via dividends or share repurchases, electing to retain earnings to fund internal growth.
Innoviva, Inc.'s current growth trajectory is Accelerating. The company achieved +18.5% 1Y revenue growth and +816.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +8.7%.
Wall Street consensus is Buy based on 10 analysts, beating EPS expectations in 75% of recent quarters with a 4-quarter streak. The consensus price target represents a +64.5% change from current levels.
Investment risks for Innoviva, Inc. include: -20.6% 1-year max drawdown. Volatility risk is characterized by a beta of 0.02x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.