Ironwood Pharmaceuticals, Inc.

NasdaqGS:IRWD Stock Report

Market Cap: US$644.2m

Ironwood Pharmaceuticals Valuation

Is IRWD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of IRWD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: IRWD ($3.96) is trading below our estimate of future cash flow value ($29.08)

Significantly Below Future Cash Flow Value: IRWD is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IRWD?

Key metric: As IRWD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IRWD. This is calculated by dividing IRWD's market cap by their current earnings.
What is IRWD's PE Ratio?
PE Ratio22.6x
EarningsUS$28.55m
Market CapUS$644.21m

Price to Earnings Ratio vs Peers

How does IRWD's PE Ratio compare to its peers?

The above table shows the PE ratio for IRWD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.3x
GYRE Gyre Therapeutics
113.2x36.06%US$752.6m
EBS Emergent BioSolutions
7.6x91.34%US$574.0m
MDXG MiMedx Group
18.8x6.53%US$765.7m
CDNA CareDx
13.7x-16.96%US$966.9m
IRWD Ironwood Pharmaceuticals
22.6x16.62%US$644.2m

Price-To-Earnings vs Peers: IRWD is good value based on its Price-To-Earnings Ratio (22.6x) compared to the peer average (38.3x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does IRWD's PE Ratio compare vs other companies in the US Biotechs Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABEO Abeona Therapeutics
3.5x19.19%US$285.05m
CHRS Coherus Oncology
4x11.76%US$243.64m
ATRA Atara Biotherapeutics
1.3x-13.91%US$30.14m
CARM Carisma Therapeutics
0.2xn/aUS$1.66m
IRWD 22.6xIndustry Avg. 22.1xNo. of Companies8PE01632486480+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IRWD is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the US Biotechs industry average (22.1x).

Price to Earnings Ratio vs Fair Ratio

What is IRWD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IRWD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.6x
Fair PE Ratio22.1x

Price-To-Earnings vs Fair Ratio: IRWD is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the estimated Fair Price-To-Earnings Ratio (22.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IRWD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$3.96
US$4.85
+22.47%
54.44%US$8.00US$0.70n/a4
Feb ’27US$4.89
US$4.85
-0.82%
54.44%US$8.00US$0.70n/a4
Jan ’27US$3.37
US$2.50
-25.82%
52.56%US$3.80US$0.70n/a3
Dec ’26US$3.50
US$2.50
-28.57%
52.56%US$3.80US$0.70n/a3
Nov ’26US$1.92
US$1.10
-42.71%
33.40%US$1.70US$0.70n/a4
Oct ’26US$1.46
US$0.95
-34.93%
15.79%US$1.10US$0.70n/a4
Sep ’26US$1.32
US$0.95
-28.03%
15.79%US$1.10US$0.70n/a4
Aug ’26US$0.77
US$0.95
+23.15%
15.79%US$1.10US$0.70n/a4
Jul ’26US$0.70
US$0.95
+35.27%
15.79%US$1.10US$0.70n/a4
Jun ’26US$0.60
US$0.95
+58.57%
15.79%US$1.10US$0.70n/a4
May ’26US$0.91
US$3.36
+268.46%
143.51%US$13.00US$0.70n/a5
Apr ’26US$1.41
US$8.67
+514.66%
43.51%US$14.00US$3.00n/a6
Mar ’26US$1.61
US$8.67
+438.30%
43.51%US$14.00US$3.00n/a6
Feb ’26US$2.34
US$8.83
+277.49%
39.98%US$14.00US$4.00US$4.896
Jan ’26US$4.43
US$12.50
+182.17%
43.02%US$23.00US$5.00US$3.376
Dec ’25US$3.52
US$12.50
+255.11%
43.02%US$23.00US$5.00US$3.506
Nov ’25US$4.19
US$12.67
+202.31%
42.68%US$23.00US$5.00US$1.926
Oct ’25US$4.02
US$11.43
+184.29%
51.20%US$23.00US$4.00US$1.467
Sep ’25US$5.06
US$12.50
+147.04%
45.20%US$23.00US$4.00US$1.326
Aug ’25US$6.59
US$15.83
+140.26%
23.18%US$23.00US$12.00US$0.776
Jul ’25US$6.52
US$15.83
+142.84%
23.18%US$23.00US$12.00US$0.706
Jun ’25US$6.30
US$15.83
+151.32%
23.18%US$23.00US$12.00US$0.606
May ’25US$8.22
US$18.00
+118.98%
17.57%US$23.00US$14.00US$0.916
Apr ’25US$8.61
US$18.00
+109.06%
17.57%US$23.00US$14.00US$1.416
Mar ’25US$9.07
US$18.00
+98.57%
17.57%US$23.00US$14.00US$1.616
Feb ’25US$14.60
US$19.83
+35.84%
11.43%US$22.00US$15.00US$2.346
US$4.85
Fair Value
18.4% undervalued intrinsic discount
4
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/22 04:36
End of Day Share Price 2026/02/20 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Ironwood Pharmaceuticals, Inc. is covered by 27 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Geoffrey MeachamBarclays
Patrick TrucchioBerenberg
David MarisBMO Capital Markets Equity Research