IRWD Valuation

Ironwood Pharmaceuticals Inc

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1.320

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

IRWD Relative Valuation

IRWD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, IRWD is overvalued; if below, it's undervalued.

Historical Valuation

Ironwood Pharmaceuticals Inc (IRWD) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.82 is considered Undervalued compared with the five-year average of 14.62. The fair price of Ironwood Pharmaceuticals Inc (IRWD) is between 16.19 to 19.85 according to relative valuation methord. Compared to the current price of 1.32 USD , Ironwood Pharmaceuticals Inc is Undervalued By 91.85%.

Relative Value

Fair Zone

16.19-19.85

Current Price：1.32

91.85%

Undervalued

6.14

Trailing

Forward

6.95

EV/EBITDA

Ironwood Pharmaceuticals Inc. (IRWD) has a current EV/EBITDA of 6.95. The 5-year average EV/EBITDA is 10.13. The thresholds are as follows: Strongly Undervalued below -2.50, Undervalued between -2.50 and 3.81, Fairly Valued between 16.45 and 3.81, Overvalued between 16.45 and 22.76, and Strongly Overvalued above 22.76. The current Forward EV/EBITDA of 6.95 falls within the Historic Trend Line -Fairly Valued range.

10.44

EV/EBIT

Ironwood Pharmaceuticals Inc. (IRWD) has a current EV/EBIT of 10.44. The 5-year average EV/EBIT is 10.21. The thresholds are as follows: Strongly Undervalued below -2.71, Undervalued between -2.71 and 3.75, Fairly Valued between 16.68 and 3.75, Overvalued between 16.68 and 23.14, and Strongly Overvalued above 23.14. The current Forward EV/EBIT of 10.44 falls within the Historic Trend Line -Fairly Valued range.

0.82

Ironwood Pharmaceuticals Inc. (IRWD) has a current PS of 0.82. The 5-year average PS is 3.49. The thresholds are as follows: Strongly Undervalued below 0.66, Undervalued between 0.66 and 2.07, Fairly Valued between 4.90 and 2.07, Overvalued between 4.90 and 6.32, and Strongly Overvalued above 6.32. The current Forward PS of 0.82 falls within the Undervalued range.

2.20

P/OCF

Ironwood Pharmaceuticals Inc. (IRWD) has a current P/OCF of 2.20. The 5-year average P/OCF is 7.89. The thresholds are as follows: Strongly Undervalued below -1.16, Undervalued between -1.16 and 3.36, Fairly Valued between 12.42 and 3.36, Overvalued between 12.42 and 16.94, and Strongly Overvalued above 16.94. The current Forward P/OCF of 2.20 falls within the Undervalued range.

2.20

P/FCF

Ironwood Pharmaceuticals Inc. (IRWD) has a current P/FCF of 2.20. The 5-year average P/FCF is 6.96. The thresholds are as follows: Strongly Undervalued below -1.55, Undervalued between -1.55 and 2.71, Fairly Valued between 11.22 and 2.71, Overvalued between 11.22 and 15.47, and Strongly Overvalued above 15.47. The current Forward P/FCF of 2.20 falls within the Undervalued range.

Ironwood Pharmaceuticals Inc (IRWD) has a current Price-to-Book (P/B) ratio of -0.70. Compared to its 3-year average P/B ratio of -1.34 , the current P/B ratio is approximately -47.98% higher. Relative to its 5-year average P/B ratio of 16.63, the current P/B ratio is about -104.18% higher. Ironwood Pharmaceuticals Inc (IRWD) has a Forward Free Cash Flow (FCF) yield of approximately 13.96%. Compared to its 3-year average FCF yield of 21.05%, the current FCF yield is approximately -33.67% lower. Relative to its 5-year average FCF yield of 17.23% , the current FCF yield is about -18.98% lower.

-0.70

P/B

Median3y

-1.34

Median5y

16.63

13.96

FCF Yield

Median3y

21.05

Median5y

17.23

Competitors Valuation Multiple

The average P/S ratio for IRWD's competitors is 36.38, providing a benchmark for relative valuation. Ironwood Pharmaceuticals Inc Corp (IRWD) exhibits a P/S ratio of 0.82, which is -97.75% above the industry average. Given its robust revenue growth of -9.70%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

IRWD.O

Ironwood Pharmaceuticals Inc

Aclaris Therapeutics Inc

Theratechnologies Inc

1.77

-19.48%

63.91M

Performance Decomposition

Market capitalization of IRWD decreased by 67.96% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -0.81 to -25.94.

The secondary factor is the Revenue Growth, contributed -9.70%to the performance.

Overall, the performance of IRWD in the past 1 year is driven by P/E Change. Which is more unsustainable.

-9.70%

94.40M → 85.24M

Revenue Growth

-3142.86%

-0.91 → 27.69

Margin Expansion

3084.60%

-0.81 → -25.94

P/E Change

-67.96%