Latest Ratios: P/E Ratio 38.6x · EV/EBITDA 29.0x · ROE 14.7%. (1996–2025 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 | $9.2B | $4.7B | $4.9B | $4.7B | $4.3B | $3.7B | $3.2B | $3.2B | $4.6B | $8.4B | $8.4B |
| Enterprise Value | $8.1B | $3.7B | $4.7B | $4.6B | $4.4B | $3.8B | $3.3B | $3.3B | $4.6B | $8.5B | $8.5B |
| P/E Ratio → | 38.56 | 19.57 | 13.25 | 13.21 | — | — | — | — | — | — | — |
| P/S Ratio | 6.23 | 3.20 | 3.12 | 2.83 | 3.85 | 3.19 | 3.05 | 2.74 | 4.18 | 9.29 | 11.29 |
| P/B Ratio | 5.11 | 2.60 | 3.32 | 3.91 | 4.10 | 3.36 | 2.97 | 2.95 | 3.91 | 6.98 | 6.96 |
| P/FCF | 19.13 | 9.83 | 12.00 | 13.33 | — | 51.50 | 77.99 | — | 153.35 | — | — |
| P/OCF | 17.65 | 9.07 | 11.08 | 11.73 | 203.32 | 36.80 | 38.24 | 44.45 | 46.11 | 437.54 | — |
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 | — | 2.49 | 2.99 | 2.78 | 3.93 | 3.26 | 3.18 | 2.81 | 4.19 | 9.39 | 11.42 |
| EV / EBITDA | 28.96 | 13.06 | 10.35 | 9.45 | 60.82 | 21.67 | — | — | 1012.78 | — | — |
| EV / EBIT | 32.06 | 12.09 | 9.97 | 10.40 | — | 38.63 | — | — | — | — | — |
| EV / FCF | — | 7.64 | 11.46 | 13.09 | — | 52.58 | 81.37 | — | 153.77 | — | — |
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 | 86.7% | 86.7% | 84.2% | 84.8% | 80.4% | 83.2% | 82.8% | 84.6% | 83.9% | 82.9% | 82.3% |
| Operating Margin | 17.2% | 17.2% | 27.0% | 24.9% | -0.5% | 8.3% | -10.8% | -15.0% | -9.1% | -16.4% | -28.0% |
| Net Profit Margin | 16.4% | 16.4% | 23.6% | 21.4% | -14.2% | -4.1% | -10.7% | -16.8% | -12.7% | -17.5% | -28.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.7% | 14.7% | 27.5% | 31.7% | -14.7% | -4.4% | -10.3% | -17.4% | -11.7% | -13.1% | -16.5% |
| ROA | 10.5% | 10.5% | 17.5% | 17.4% | -7.9% | -2.4% | -5.9% | -10.8% | -7.7% | -9.0% | -11.6% |
| ROIC | 18.9% | 18.9% | 26.7% | 27.6% | -0.4% | 6.1% | -7.1% | -11.2% | -6.0% | -8.5% | -11.2% |
| ROCE | 14.2% | 14.2% | 26.2% | 26.9% | -0.4% | 6.4% | -7.7% | -12.1% | -6.6% | -9.8% | -13.3% |
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 | 0.04 | 0.04 | 0.05 | 0.31 | 0.36 | 0.37 | 0.38 | 0.27 | 0.24 | 0.23 | 0.23 |
| Debt / EBITDA | 0.25 | 0.25 | 0.17 | 0.76 | 5.29 | 2.36 | — | — | 61.63 | — | — |
| Net Debt / Equity | — | -0.58 | -0.15 | -0.07 | 0.08 | 0.07 | 0.13 | 0.08 | 0.01 | 0.07 | 0.08 |
| Net Debt / EBITDA | -3.73 | -3.73 | -0.48 | -0.17 | 1.21 | 0.45 | — | — | 2.77 | — | — |
| Debt / FCF | — | -2.19 | -0.53 | -0.24 | — | 1.08 | 3.38 | — | 0.42 | — | — |
| Interest Coverage | 24.74 | 24.74 | 20.65 | 19.30 | -1.39 | 8.82 | -10.15 | -13.49 | -7.22 | -10.93 | -13.40 |
Net cash position: cash ($1.1B) exceeds total debt ($70M)
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 | 3.55 | 3.55 | 3.04 | 2.86 | 2.27 | 2.25 | 2.53 | 2.46 | 2.89 | 3.32 | 4.30 |
| Quick Ratio | 3.19 | 3.19 | 2.65 | 2.50 | 1.91 | 1.93 | 2.25 | 2.20 | 2.63 | 3.00 | 4.01 |
| Cash Ratio | 2.43 | 2.43 | 1.62 | 1.49 | 1.22 | 1.14 | 1.45 | 1.37 | 1.59 | 1.49 | 2.35 |
| Asset Turnover | — | 0.58 | 0.76 | 0.78 | 0.57 | 0.58 | 0.53 | 0.65 | 0.60 | 0.50 | 0.43 |
| Inventory Turnover | 1.00 | 1.00 | 1.34 | 1.36 | 1.20 | 1.31 | 1.42 | 1.77 | 1.96 | 1.66 | 2.10 |
| Days Sales Outstanding | — | 82.61 | 91.28 | 73.11 | 97.47 | 101.55 | 101.74 | 82.75 | 100.22 | 94.38 | 93.54 |
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 | 2.6% | 5.1% | 7.5% | 7.6% | — | — | — | — | — | — | — |
| FCF Yield | 5.2% | 10.2% | 8.3% | 7.5% | — | 1.9% | 1.3% | — | 0.7% | — | — |
| Buyback Yield | 0.3% | 0.7% | 4.1% | 0.6% | 0.4% | 0.4% | 0.2% | 0.3% | 0.4% | 0.2% | 0.2% |
| Total Shareholder Yield | 0.3% | 0.7% | 4.1% | 0.6% | 0.4% | 0.4% | 0.2% | 0.3% | 0.4% | 0.2% | 0.2% |
| Shares Outstanding | — | $169M | $169M | $170M | $164M | $161M | $159M | $157M | $155M | $153M | $151M |
Royalty stream arbitration uncertainty
Based on current market data, Alkermes trades at a P/E of 38.52 and an EV/EBITDA of 28.92, suggesting that investors are pricing in significant future growth or margin expansion that may not be fully supported by the company's recent volatile earnings performance and ongoing royalty arbitration risks.
The current valuation multiples appear elevated relative to the company's historical averages and peer group, implying that the market is assigning a premium to the 'New Alkermes' post-oncology spin-off narrative. However, given the lack of forward P/E guidance and the recent swing to net losses, this valuation warrants caution as it may be overestimating the durability of core CNS product growth.
As reported in recent financial statements, Alkermes' ROIC has experienced a sharp decline, falling from a peak of 12.1% in 2023Q4 to -1.9% in 2026Q1, indicating that the company is currently struggling to generate positive returns on its invested capital following the recent oncology business separation.
The deterioration in ROIC suggests that the company's capital allocation strategy is currently failing to drive value, likely due to the high fixed costs associated with its CNS commercial infrastructure. Investors should monitor whether management can improve asset utilization as the Lybalvi product line scales, as current returns are significantly below the cost of capital.
According to quarterly filings, the company's asset turnover ratio remains low at 0.12 as of 2026Q1, reflecting a persistent inability to efficiently convert its asset base into revenue, which is further complicated by significant fluctuations in the cash conversion cycle and inventory management across its CNS portfolio.
The high DSO levels, which reached 85 days in the most recent quarter, suggest potential challenges in collecting receivables, possibly linked to the complex reimbursement environment for injectable antipsychotics. This inefficiency in working capital management appears to be a structural drag on the company's ability to generate consistent free cash flow.
Based on reported figures, Alkermes' current ratio has contracted from 3.67 in 2025Q3 to 2.27 in 2026Q1, indicating that while the company maintains a healthy liquidity position, its immediate financial cushion is narrowing as it navigates a period of operational transition and increased debt utilization.
While the current ratio remains well above the threshold of concern, the downward trend suggests that the company is consuming its cash reserves more rapidly than in previous periods. This compression warrants close monitoring, especially given the potential for further cash outflows related to legal and arbitration costs surrounding the Invega royalty stream.
As noted in industry research, the P/E ratio is a frequently misapplied metric for Alkermes, as it fails to account for the non-cash nature of significant royalty revenues and the lumpy impact of milestone payments that distort the company's true underlying earnings power and cash-generating capacity.
Investors should instead focus on EV/EBITDA or free cash flow yield, which better capture the operational reality of the business by stripping out the accounting noise inherent in the royalty-heavy model. Relying on P/E in this context risks misinterpreting the company's valuation by ignoring the volatility of its most profitable, yet legally contested, revenue streams.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ALKS stock.
Alkermes plc's current P/E ratio is 38.6x. The historical average is 42.7x. This places it at the 71th percentile of its historical range.
Alkermes plc's current EV/EBITDA is 29.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.9x.
Alkermes plc's return on equity (ROE) is 14.7%. The historical average is -17.5%.
Based on historical data, Alkermes plc is trading at a P/E of 38.6x. This is at the 71th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Alkermes plc has 86.7% gross margin and 17.2% operating margin. Operating margin between 10-20% is typical for established companies.
Alkermes plc's Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.