Ironwood Pharmaceuticals, Inc. (IRWD) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+79.1%

$6.20

vs $3.46 price

Levered DCF

$11.72

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

-2.15

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.47×	805.45×	-1.77×	10.96×	3.58×	17×	35.03×	-5.6×
P/B	-2.09×	-2.34×	-5.13×	2.93×	3.12×	28.99×	-22.27×	-8.05×
P/S	1.85×	2.01×	4.02×	4.66×	4.57×	4.66×	4.85×	4.56×
EV / EBITDA	8.88×	12.44×	12.17×	6.4×	7.48×	13.43×	18.13×	-12.61×
Gross margin	100.0%	97.9%	98.6%	99.7%	83.0%	99.2%	68.4%	90.6%
Operating margin	40.1%	26.5%	-213.5%	61.0%	56.1%	36.7%	28.0%	-68.9%
Net margin	8.1%	0.3%	-226.4%	42.6%	127.7%	27.3%	5.0%	-81.5%
Current ratio	1.13×	4.69×	0.84×	30.58×	4.61×	15.41×	7.5×	2.23×
Debt / equity	-2.28×	-1.99×	-2.07×	0.64×	0.79×	7.24×	-4.62×	-2.11×
Interest coverage	3.63×	2.82×	-43.71×	32.95×	7.46×	4.85×	3.28×	-6.33×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-9.2%	-0.3%	289.4%	26.8%	87.2%	169.5%	-23.1%	143.8%
Return on invested capital	11.4%	0.4%	-237.7%	16.1%	21.4%	26.3%	33.1%	-90.0%
Return on assets	6.1%	0.3%	-212.8%	15.9%	46.9%	19.0%	5.3%	-85.0%
Free cash flow yield	23.2%	14.7%	10.3%	14.3%	13.8%	9.2%	0.2%	-5.0%
Earnings yield	4.4%	0.1%	-56.4%	9.2%	27.9%	5.8%	1.0%	-17.9%
Enterprise value	$929M	$1.2B	$2.4B	$1.7B	$1.7B	$1.9B	$2.3B	$1.8B
Net debt / EBITDA	3.65×	5.23×	3.16×	-0.92×	-0.62×	0.63×	1.98×	-1.67×
Cash conversion cycle (days)	58	-18	-358	300	96	38	87	-81