Latest Ratios: P/E Ratio -329.6x · EV/EBITDA 33.0x · ROE -8.5%. (2006–2025 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 | $1.7B | $1.8B | $1.2B | $365M | $405M | $231M | $178M | $206M | $135M | $34M | $32M |
| Enterprise Value | $1.9B | $2.0B | $1.4B | $482M | $421M | $267M | $197M | $222M | $144M | $45M | $37M |
| P/E Ratio → | -329.64 | — | — | — | — | — | — | 778.00 | 9.33 | — | — |
| P/S Ratio | 6.32 | 6.61 | 5.99 | 2.81 | 4.58 | 3.19 | 3.63 | 4.02 | 3.27 | 1.27 | 1.60 |
| P/B Ratio | 32.57 | 34.58 | 17.26 | 5.22 | 14.88 | 21.15 | 6.62 | 7.51 | 5.47 | 13.02 | 4.95 |
| P/FCF | 40.03 | 41.91 | — | — | — | — | — | — | — | — | — |
| P/OCF | 39.22 | 41.06 | — | 95.13 | 237.73 | 45.49 | — | 216.74 | 197.22 | — | — |
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 | — | 7.27 | 6.90 | 3.70 | 4.76 | 3.68 | 4.03 | 4.34 | 3.48 | 1.69 | 1.84 |
| EV / EBITDA | 33.02 | 34.43 | 62.98 | 41.64 | 88.69 | 79.57 | 87.43 | — | — | — | — |
| EV / EBIT | 49.19 | 51.29 | 151.81 | 593.99 | 219.53 | 79.38 | 263.46 | — | — | — | — |
| EV / FCF | — | 46.08 | — | — | — | — | — | — | — | — | — |
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 | 75.1% | 75.1% | 75.3% | 69.6% | 71.3% | 74.9% | 70.4% | 67.3% | 60.1% | 49.6% | 50.7% |
| Operating Margin | 14.2% | 14.2% | 4.4% | 0.3% | 2.2% | 2.2% | 0.8% | -9.4% | -12.6% | -45.4% | -79.6% |
| Net Profit Margin | -1.9% | -1.9% | -8.8% | -18.7% | -15.9% | -24.8% | -6.9% | 0.3% | 35.4% | -44.8% | -95.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -8.5% | -8.5% | -25.1% | -50.2% | -73.8% | -95.4% | -12.4% | 0.6% | 106.9% | -264.9% | -756.4% |
| ROA | -1.3% | -1.3% | -5.0% | -10.4% | -11.0% | -23.1% | -5.8% | 0.3% | 39.9% | -46.8% | -92.3% |
| ROIC | 12.0% | 12.0% | 3.0% | 0.3% | 3.2% | 2.6% | 0.6% | -9.3% | -16.6% | -72.4% | -153.2% |
| ROCE | 12.9% | 12.9% | 3.2% | 0.2% | 1.7% | 2.4% | 0.8% | -11.4% | -18.7% | -68.6% | -121.7% |
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 | 4.84 | 4.84 | 3.30 | 2.72 | 4.12 | 7.13 | 0.88 | 0.77 | 0.62 | 5.86 | 2.13 |
| Debt / EBITDA | 4.38 | 4.38 | 10.46 | 16.47 | 23.63 | 23.24 | 10.44 | — | — | — | — |
| Net Debt / Equity | — | 3.44 | 2.62 | 1.66 | 0.59 | 3.27 | 0.72 | 0.59 | 0.35 | 4.32 | 0.75 |
| Net Debt / EBITDA | 3.11 | 3.11 | 8.30 | 10.06 | 3.36 | 10.67 | 8.62 | — | — | — | — |
| Debt / FCF | — | 4.17 | — | — | — | — | — | — | — | — | — |
| Interest Coverage | 1.60 | 1.60 | 0.40 | 0.04 | 0.26 | 0.62 | 0.33 | -0.28 | -1.91 | -4.02 | -5.55 |
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 | 2.20 | 2.20 | 2.08 | 2.82 | 6.35 | 6.24 | 3.79 | 2.99 | 2.76 | 1.53 | 1.49 |
| Quick Ratio | 2.06 | 2.06 | 1.96 | 2.60 | 6.00 | 5.81 | 3.43 | 2.72 | 2.61 | 1.14 | 1.30 |
| Cash Ratio | 0.76 | 0.76 | 0.52 | 1.68 | 5.47 | 5.21 | 3.03 | 2.44 | 2.36 | 0.70 | 0.89 |
| Asset Turnover | — | 0.68 | 0.51 | 0.42 | 0.56 | 0.74 | 0.85 | 0.87 | 0.84 | 1.12 | 0.73 |
| Inventory Turnover | 5.02 | 5.02 | 4.60 | 3.65 | 3.88 | 4.32 | 3.65 | 5.07 | 9.01 | 6.00 | 5.34 |
| Days Sales Outstanding | — | 148.65 | 213.21 | 102.30 | 26.32 | 22.75 | 19.88 | 14.33 | 17.33 | 22.14 | 53.46 |
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 | — | — | — | — | — | 0.1% | — | — | — | — | — |
| 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 | — | — | — | — | — | — | — | 0.1% | 10.7% | — | — |
| FCF Yield | 2.5% | 2.4% | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $37M | $36M | $33M | $27M | $27M | $26M | $26M | $24M | $20M | $13M |
Excessive debt and dilution
According to recent market data, Harrow's forward P/E of 169.98 suggests that investors are pricing in significant future earnings growth that remains unproven, especially when contrasted with the company's negative TTM P/E and the inherent volatility of its transition toward a branded pharmaceutical business model.
The elevated P/S ratio of 5.76 relative to historical norms indicates that the market is assigning a premium to the company's potential as a platform for ophthalmic assets. However, this valuation appears fragile, as it relies on the successful scaling of branded products to offset the high fixed costs currently weighing on the bottom line.
Based on reported figures, Harrow's ROIC has trended into negative territory, reaching -7.1% in 2026Q1, which highlights the difficulty of generating adequate returns on invested capital while simultaneously absorbing the costs of aggressive asset acquisitions and the associated debt burden required to fund them.
The decline from a positive 7.9% ROIC in 2025Q4 suggests that the company's capital allocation strategy is currently destroying value rather than compounding it. Investors should monitor whether future branded drug launches can improve asset utilization or if the current capital structure will continue to suppress returns.
As reported in financial statements, the company's cash conversion cycle has expanded to 141 days in 2026Q1, a significant deterioration from the 54 days observed in 2025Q3, indicating that Harrow is struggling to manage its working capital effectively during this period of rapid portfolio expansion.
The sharp increase in DSO to 216 days suggests potential challenges in collecting receivables from the physician base, which may indicate either a shift in customer payment terms or underlying credit risk. This inefficiency ties up critical liquidity that is needed to service the company's substantial debt obligations.
Data from recent filings reveals that Harrow's debt-to-equity ratio has escalated to 10.61 in 2026Q1, a level that appears increasingly unsustainable and suggests that the company's reliance on external financing has reached a point where it may severely limit future operational and strategic flexibility.
The negative interest coverage ratio of -4.02 in the most recent quarter underscores the risk that operating income is insufficient to cover debt service requirements. This leverage profile makes the company highly sensitive to interest rate volatility and necessitates a rapid improvement in core profitability to avoid further balance sheet strain.
The most commonly misapplied metric for Harrow is the standard P/E ratio, which obscures the company's true operational health by failing to account for the non-cash volatility stemming from its equity-method investments and the heavy amortization of acquired intangible assets inherent in its business model.
Analysts should instead focus on adjusted EBITDA and cash flow from operations, as these metrics better reflect the underlying performance of the ImprimisRx and branded segments. Relying on P/E in this context risks misinterpreting accounting noise as a signal of fundamental earnings power.
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Quick answers to the most common questions about buying HROW stock.
Harrow Health, Inc.'s current P/E ratio is -329.6x. The historical average is 9.3x.
Harrow Health, Inc.'s current EV/EBITDA is 33.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 65.8x.
Harrow Health, Inc.'s return on equity (ROE) is -8.5%. The historical average is -109.6%.
Based on historical data, Harrow Health, Inc. is trading at a P/E of -329.6x. Compare with industry peers and growth rates for a complete picture.
Harrow Health, Inc. has 75.1% gross margin and 14.2% operating margin. Operating margin between 10-20% is typical for established companies.
Harrow Health, Inc.'s Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.