Latest Ratios: P/E Ratio 14.1x · EV/EBITDA 7.3x · ROE 20.8%. (2018–2025 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 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.2B | $2.2B | $2.0B | $2.0B | $3.4B | $2.5B | $2.1B | — | — |
| Enterprise Value | $1.7B | $1.7B | $1.7B | $1.8B | $3.3B | $2.5B | $2.1B | — | — |
| P/E Ratio → | 14.12 | 13.81 | 13.71 | 15.16 | 18.55 | 73.52 | — | — | — |
| P/S Ratio | 2.55 | 2.52 | 2.79 | 3.35 | 7.69 | 8.27 | 13.09 | — | — |
| P/B Ratio | 2.57 | 2.52 | 3.02 | 4.18 | 8.36 | 13.54 | 21.52 | — | — |
| P/FCF | 6.37 | 6.30 | 9.11 | 8.90 | 23.33 | 25.69 | — | — | — |
| P/OCF | 6.36 | 6.29 | 9.06 | 8.89 | 23.30 | 25.61 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.93 | 2.41 | 3.15 | 7.57 | 8.14 | 12.88 | — | — |
| EV / EBITDA | 7.28 | 7.18 | 8.00 | 8.47 | 23.08 | 23.37 | 75.55 | — | — |
| EV / EBIT | 8.16 | 7.30 | 8.22 | 9.29 | 26.84 | 40.34 | — | — | — |
| EV / FCF | — | 4.82 | 7.86 | 8.36 | 22.97 | 25.30 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 77.2% | 77.2% | 78.1% | 79.2% | 80.9% | 81.8% | 82.6% | 73.7% | — |
| Operating Margin | 24.0% | 24.0% | 26.7% | 33.0% | 27.4% | 28.7% | 10.6% | -2433.8% | — |
| Net Profit Margin | 18.3% | 18.3% | 20.4% | 22.1% | 41.4% | 11.3% | -23.1% | -2535.1% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.8% | 20.8% | 25.8% | 29.6% | 61.6% | 24.4% | -86.3% | -434.6% | -48.9% |
| ROA | 14.0% | 14.0% | 16.1% | 17.4% | 32.8% | 8.0% | -13.8% | -155.1% | -44.7% |
| ROIC | 42.0% | 42.0% | 38.9% | 41.2% | 36.2% | 62.3% | 20.4% | -57.0% | — |
| ROCE | 22.6% | 22.6% | 25.9% | 30.9% | 24.7% | 26.0% | 9.0% | -172.8% | -50.5% |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.28 | 0.41 | 0.48 | 1.05 | 2.00 | — | 3.98 |
| Debt / EBITDA | 1.02 | 1.02 | 0.84 | 0.89 | 1.33 | 1.84 | 7.14 | — | — |
| Net Debt / Equity | — | -0.59 | -0.41 | -0.25 | -0.13 | -0.21 | -0.35 | — | 2.95 |
| Net Debt / EBITDA | -2.19 | -2.19 | -1.26 | -0.55 | -0.36 | -0.36 | -1.26 | — | — |
| Debt / FCF | — | -1.47 | -1.24 | -0.54 | -0.36 | -0.39 | — | — | — |
| Interest Coverage | 15.68 | 15.68 | 11.96 | 8.30 | 6.57 | 2.55 | -0.31 | -24.03 | — |
Net cash position: cash ($753M) exceeds total debt ($240M)
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 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.60 | 3.60 | 3.31 | 2.75 | 5.07 | 5.29 | 1.95 | 1.58 | 11.99 |
| Quick Ratio | 3.58 | 3.58 | 3.27 | 2.72 | 5.02 | 5.21 | 1.93 | 1.53 | 11.99 |
| Cash Ratio | 3.08 | 3.08 | 2.67 | 2.16 | 4.10 | 4.36 | 1.70 | 1.23 | 11.55 |
| Asset Turnover | — | 0.68 | 0.72 | 0.72 | 0.65 | 0.70 | 0.37 | 0.06 | — |
| Inventory Turnover | 37.02 | 37.02 | 21.79 | 22.61 | 19.43 | 12.53 | 7.26 | 1.45 | — |
| Days Sales Outstanding | — | 40.68 | 42.40 | 46.49 | 45.63 | 41.64 | 50.67 | 259.06 | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.1% | 7.2% | 7.3% | 6.6% | 5.4% | 1.4% | — | — | — |
| FCF Yield | 15.7% | 15.9% | 11.0% | 11.2% | 4.3% | 3.9% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 5.1% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 5.1% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $59M | $58M | $60M | $61M | $59M | $58M | $64M | $49M |
Single-product regulatory dependency
Based on current market data, HRMY trades at a forward P/E of 10.34, which appears to reflect a significant single-product discount compared to diversified biotech peers, suggesting that investors are pricing in substantial regulatory and patent-related risks rather than the company's current earnings growth trajectory.
The valuation multiples, including an EV/EBITDA of 6.59, indicate that the market remains skeptical of the long-term sustainability of WAKIX revenue. This pricing suggests that the market is not fully crediting the potential for label expansion into Idiopathic Hypersomnia, treating the current earnings as a peak rather than a foundation.
According to reported financial statements, ROIC has trended downward from a peak of 13.0% in 2025Q3 to 6.3% in 2026Q1, indicating that the company is currently struggling to maintain high returns on its invested capital as it scales its commercial infrastructure and pursues external M&A.
The decline in ROIC suggests that recent capital deployments, including the acquisition of Zynerba, have yet to generate returns that exceed the cost of capital. Investors should monitor whether this trend represents a temporary drag from integration costs or a structural shift toward lower-margin clinical development activities.
As reported in recent filings, the asset turnover ratio has remained stagnant near 0.20, highlighting the inherent difficulty in generating high revenue volume from a single-product portfolio that relies heavily on specialized sales force efforts rather than broad-based manufacturing or distribution scale.
The cash conversion cycle remains volatile, fluctuating between 5 and 29 days, which reflects the company's sensitivity to channel inventory management. This inconsistency in working capital efficiency warrants further investigation into whether the firm is over-relying on specialty pharmacy stocking to meet quarterly revenue targets.
Based on the most recent quarterly data, the company maintains a current ratio of 3.58, providing a robust liquidity cushion that appears more than sufficient to withstand potential regulatory shocks or temporary disruptions in the distribution of its primary therapeutic asset, WAKIX.
The high quick ratio of 3.56 confirms that the company's liquidity is not overly dependent on inventory liquidation, which is a positive indicator for a single-product firm. This strong position allows management significant flexibility to pursue further M&A without the immediate need for dilutive equity financing.
The P/E ratio is frequently misapplied to Harmony Biosciences because it fails to account for the lumpy nature of R&D milestone payments and the significant amortization of intangible assets, which often distort GAAP earnings and mask the underlying cash-generating power of the commercial business.
Analysts should instead focus on EV/EBITDA or FCF-based metrics to better understand the operational reality of the business. Relying solely on P/E may lead to an incorrect assessment of the company's valuation, as it ignores the non-cash charges that are inherent in the current licensing-heavy business model.
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying HRMY stock.
Harmony Biosciences Holdings, Inc.'s current P/E ratio is 14.1x. The historical average is 27.0x. This places it at the 40th percentile of its historical range.
Harmony Biosciences Holdings, Inc.'s current EV/EBITDA is 7.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 24.3x.
Harmony Biosciences Holdings, Inc.'s return on equity (ROE) is 20.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -51.0%.
Based on historical data, Harmony Biosciences Holdings, Inc. is trading at a P/E of 14.1x. This is at the 40th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Harmony Biosciences Holdings, Inc. has 77.2% gross margin and 24.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Harmony Biosciences Holdings, Inc.'s Debt/EBITDA ratio is 1.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.