Latest Ratios: P/E Ratio 6.7x · EV/EBITDA 6.7x · ROE 29.1%. (2002–2025 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 | $1.6B | $1.7B | $1.3B | $1.4B | $1.3B | $1.6B | $1.4B | $1.6B | $2.0B | $1.7B | $1.3B |
| Enterprise Value | $1.4B | $1.4B | $1.4B | $1.6B | $1.5B | $1.8B | $1.5B | $1.7B | $2.3B | $2.2B | $1.9B |
| P/E Ratio → | 6.74 | 6.06 | 48.19 | 7.29 | 5.59 | 6.01 | 6.13 | 9.90 | 4.94 | 12.13 | 20.19 |
| P/S Ratio | 3.86 | 3.99 | 3.59 | 4.49 | 3.81 | 4.15 | 4.18 | 6.15 | 7.58 | 7.83 | 9.87 |
| P/B Ratio | 1.61 | 1.44 | 1.86 | 2.06 | 2.23 | 3.09 | 2.31 | 4.69 | 12.44 | — | — |
| P/FCF | 8.39 | 8.65 | 6.83 | 9.91 | 6.26 | 4.49 | 4.49 | 6.24 | 8.85 | 12.00 | 21.72 |
| P/OCF | 8.34 | 8.60 | 6.82 | 9.88 | 6.26 | 4.47 | 4.49 | 6.24 | 8.85 | 12.00 | 21.62 |
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 | — | 3.32 | 4.00 | 5.31 | 4.57 | 4.64 | 4.59 | 6.53 | 8.81 | 10.25 | 14.35 |
| EV / EBITDA | 6.67 | 6.92 | 7.44 | 12.15 | 7.13 | 3.92 | 4.15 | 6.55 | 9.12 | 11.27 | 15.59 |
| EV / EBIT | 8.31 | 4.11 | 24.05 | 7.73 | 5.00 | 3.92 | 4.15 | 6.92 | 9.82 | 12.13 | 17.59 |
| EV / FCF | — | 7.21 | 7.61 | 11.72 | 7.51 | 5.02 | 4.94 | 6.62 | 10.29 | 15.71 | 31.57 |
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 | 72.3% | 72.3% | 89.8% | 86.3% | 95.8% | 100.0% | 100.0% | 100.0% | 100.0% | 99.4% | 99.0% |
| Operating Margin | 38.5% | 38.5% | 46.5% | 36.7% | 62.5% | 95.7% | 95.3% | 94.4% | 91.3% | 84.5% | 81.6% |
| Net Profit Margin | 63.8% | 63.8% | 6.5% | 57.9% | 64.6% | 67.8% | 66.6% | 60.3% | 151.4% | 61.8% | 44.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 29.1% | 29.1% | 3.4% | 29.0% | 39.2% | 46.9% | 47.2% | 62.8% | 248.4% | — | — |
| ROA | 18.5% | 18.5% | 1.8% | 14.5% | 19.8% | 27.6% | 26.0% | 24.7% | 86.3% | 35.9% | 14.8% |
| ROIC | 14.2% | 14.2% | 14.2% | 9.8% | 20.2% | 38.4% | 40.5% | 40.1% | 46.9% | 52.1% | 34.3% |
| ROCE | 12.4% | 12.4% | 14.7% | 9.9% | 20.5% | 39.2% | 37.5% | 39.0% | 54.5% | 53.1% | 28.3% |
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 | 0.23 | 0.23 | 0.65 | 0.67 | 0.96 | 0.75 | 0.63 | 1.10 | 2.41 | — | — |
| Debt / EBITDA | 1.32 | 1.32 | 2.34 | 3.31 | 2.56 | 0.85 | 1.03 | 1.45 | 1.52 | 3.03 | 5.82 |
| Net Debt / Equity | — | -0.24 | 0.21 | 0.38 | 0.45 | 0.37 | 0.23 | 0.29 | 2.01 | — | — |
| Net Debt / EBITDA | -1.38 | -1.38 | 0.76 | 1.88 | 1.19 | 0.42 | 0.37 | 0.38 | 1.27 | 2.66 | 4.86 |
| Debt / FCF | — | -1.44 | 0.78 | 1.82 | 1.25 | 0.53 | 0.44 | 0.38 | 1.43 | 3.71 | 9.85 |
| Interest Coverage | 20.57 | 20.57 | 2.68 | 11.13 | 19.17 | 24.35 | 20.32 | 13.20 | 9.78 | 4.21 | 2.08 |
Net cash position: cash ($551M) exceeds total debt ($269M)
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 | 14.64 | 14.64 | 2.35 | 9.03 | 3.29 | 54.02 | 55.98 | 80.29 | 34.92 | 5.75 | 9.88 |
| Quick Ratio | 13.85 | 13.85 | 2.21 | 7.96 | 2.87 | 54.02 | 55.98 | 80.29 | 34.92 | 5.77 | 9.88 |
| Cash Ratio | 11.09 | 11.09 | 1.75 | 5.07 | 2.16 | 34.70 | 40.34 | 65.32 | 20.16 | 3.72 | 7.50 |
| Asset Turnover | — | 0.26 | 0.28 | 0.25 | 0.27 | 0.42 | 0.34 | 0.36 | 0.48 | 0.59 | 0.35 |
| Inventory Turnover | 3.00 | 3.00 | 1.09 | 1.05 | 0.25 | — | — | — | — | — | — |
| Days Sales Outstanding | — | 30.02 | 87.88 | 98.84 | 70.58 | 103.12 | 101.80 | 111.07 | 116.47 | 118.53 | 128.02 |
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 | — | — | — | — | — | — | — | 0.0% | 0.0% | 0.0% | 0.1% |
| Payout Ratio | — | — | — | — | — | — | — | 0.0% | 0.0% | 0.2% | 1.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 14.8% | 16.5% | 2.1% | 13.7% | 17.9% | 16.6% | 16.3% | 10.1% | 20.2% | 8.2% | 5.0% |
| FCF Yield | 11.9% | 11.6% | 14.6% | 10.1% | 16.0% | 22.3% | 22.3% | 16.0% | 11.3% | 8.3% | 4.6% |
| Buyback Yield | 0.3% | 0.3% | 1.2% | 5.4% | 0.7% | 24.2% | 0.0% | 0.0% | 0.2% | 5.9% | 6.0% |
| Total Shareholder Yield | 0.3% | 0.3% | 1.2% | 5.4% | 0.7% | 24.2% | 0.0% | 0.0% | 0.2% | 5.9% | 6.1% |
| Shares Outstanding | — | $85M | $74M | $87M | $95M | $94M | $114M | $113M | $113M | $120M | $123M |
Commercialization execution uncertainty
According to current market data, Innoviva trades at a forward P/E of 6.61, which suggests that investors are applying a significant conglomerate discount to the company's dual-natured business model, likely struggling to reconcile the high-certainty royalty stream with the capital-intensive, high-risk infectious disease operating segment.
The low forward EV/EBITDA multiple of 4.32 indicates that the market is pricing the company as a terminal asset rather than a growth platform. This valuation warrants further investigation, as it may undervalue the optionality of the newly integrated commercial operations if management successfully scales the hospital-focused antibiotic portfolio.
Based on reported financial figures, Innoviva's ROIC has remained volatile, fluctuating between -4.7% and 4.4% over the last ten quarters, which indicates that the company's recent pivot toward asset-heavy commercial operations is currently struggling to generate returns that exceed the cost of capital.
The inconsistency in ROIC suggests that the capital deployed into the La Jolla and Entasis acquisitions has yet to reach a steady-state of profitability. Investors should monitor whether these investments eventually drive margin expansion or if they represent a permanent drag on the company's historical ability to compound capital efficiently.
As reported in recent financial statements, Innoviva's cash conversion cycle has expanded significantly, reaching 194 days in 2026Q1, which highlights the operational friction introduced by moving from a pure royalty model to a product-based commercial entity requiring complex inventory and receivables management.
The sharp increase in DIO from 84 days in 2025Q4 to 158 days in 2026Q1 suggests that the company is carrying higher inventory levels to support its hospital-focused product launches. This shift appears to be a structural change that necessitates closer scrutiny of the company's ability to manage hospital procurement cycles effectively.
According to recent SEC filings, Innoviva maintains a healthy balance sheet with a debt-to-equity ratio of 0.25 as of 2026Q1, providing the company with significant financial flexibility to navigate the inherent risks of its transition into an active commercial operating entity.
The interest coverage ratio of 7.02 indicates that debt service remains well-supported by the core royalty cash flows, even as the company increases its operational overhead. This conservative leverage profile appears to be a deliberate strategy to mitigate the risks associated with the company's aggressive M&A-led growth strategy.
Based on an analysis of Innoviva's financial reporting, the P/E ratio is the most commonly misapplied metric for this business model, as it is frequently distorted by non-cash amortization of royalty rights and non-operating accounting items that do not reflect the company's actual cash-generating capacity.
Analysts should prioritize free cash flow and cash collected from GSK over reported net income to understand the true liquidity available for reinvestment. Relying on P/E ratios may lead to a flawed assessment of the company's earning power, as it fails to account for the unique accounting nuances of the respiratory royalty franchise.
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Quick answers to the most common questions about buying INVA stock.
Innoviva, Inc.'s current P/E ratio is 6.7x. The historical average is 12.6x. This places it at the 50th percentile of its historical range.
Innoviva, Inc.'s current EV/EBITDA is 6.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 11.2x.
Innoviva, Inc.'s return on equity (ROE) is 29.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -36.2%.
Based on historical data, Innoviva, Inc. is trading at a P/E of 6.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Innoviva, Inc. has 72.3% gross margin and 38.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Innoviva, Inc.'s Debt/EBITDA ratio is 1.3x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.