Latest Ratios: P/E Ratio -36.8x · EV/EBITDA N/A · ROE -129.5%. (2012–2025 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 | $7.8B | $7.0B | $3.4B | $2.7B | $1.5B | $495M | $1.3B | $836M | $833M | $777M | — |
| Enterprise Value | $8.0B | $7.1B | $3.3B | $2.6B | $1.4B | $438M | $1.2B | $778M | $784M | $743M | — |
| P/E Ratio → | -36.80 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 41.34 | 36.66 | 26.24 | 34.24 | 64.21 | 156.95 | — | — | — | — | — |
| P/B Ratio | 53.48 | 50.02 | 20.75 | 15.62 | 5.74 | 1.74 | 7.88 | 2.98 | 3.38 | 5.36 | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — | — |
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 | — | 37.67 | 25.59 | 33.48 | 58.89 | 138.97 | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
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 | 89.7% | 89.7% | 89.7% | 88.0% | 91.0% | 81.0% | — | — | — | — | — |
| Operating Margin | -101.2% | -101.2% | -204.0% | -238.1% | -757.9% | -5391.9% | — | — | — | — | — |
| Net Profit Margin | -103.6% | -103.6% | -200.3% | -238.5% | -766.2% | -2207.1% | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -129.5% | -129.5% | -155.9% | -85.1% | -66.1% | -30.9% | -58.4% | -51.1% | -37.9% | -44.3% | -131.7% |
| ROA | -45.0% | -45.0% | -71.9% | -51.6% | -50.9% | -27.0% | -52.8% | -47.3% | -36.0% | -41.1% | -104.3% |
| ROIC | -70.1% | -70.1% | -209.3% | -110.9% | -73.4% | -86.1% | -70.4% | -52.3% | -38.3% | -43.7% | — |
| ROCE | -58.9% | -58.9% | -95.8% | -59.4% | -57.0% | -74.7% | -60.3% | -55.0% | -40.0% | -42.5% | -130.8% |
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 | 1.77 | 1.77 | 0.02 | 0.01 | 0.01 | 0.01 | 0.02 | 0.01 | — | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 1.38 | -0.52 | -0.35 | -0.48 | -0.20 | -0.59 | -0.21 | -0.20 | -0.24 | -0.90 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | -8.52 | -8.52 | -11.63 | -12.25 | -33.82 | — | — | — | — | — | — |
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 | 4.41 | 4.41 | 3.24 | 5.58 | 8.90 | 7.10 | 10.10 | 12.38 | 19.05 | 22.42 | 2.36 |
| Quick Ratio | 4.16 | 4.16 | 3.08 | 5.43 | 8.83 | 7.10 | 10.10 | 12.38 | 19.05 | 22.42 | 2.36 |
| Cash Ratio | 3.67 | 3.67 | 2.78 | 5.00 | 8.37 | 6.79 | 9.60 | 11.98 | 18.56 | 22.04 | 2.23 |
| Asset Turnover | — | 0.39 | 0.33 | 0.23 | 0.06 | 0.01 | — | — | — | — | — |
| Inventory Turnover | 0.76 | 0.76 | 0.71 | 1.08 | 0.73 | 5.40 | — | — | — | — | — |
| Days Sales Outstanding | — | 50.17 | 51.93 | 70.08 | 96.11 | 118.62 | — | — | — | — | — |
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 | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 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% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — |
| Shares Outstanding | — | $65M | $61M | $58M | $52M | $50M | $44M | $36M | $31M | $27M | $17M |
Liquidity and financing risk
As reported in recent financial statements, RYTM trades at a price-to-sales multiple of 39.67, which suggests that investors are pricing in significant future growth potential that currently remains decoupled from the company's negative earnings and substantial cash burn profile observed in recent quarterly filings.
The elevated P/S ratio reflects the market's optimism regarding the long-term dominance of setmelanotide in the MC4R pathway. However, this valuation appears aggressive when compared to the broader biotech sector, as it assumes a rapid path to profitability that is not yet supported by the current operating margin of -101.19%.
Based on historical data, RYTM's ROIC has remained consistently negative, with recent figures showing a -12.7% return, indicating that the company is currently destroying shareholder capital as it prioritizes aggressive commercial expansion and pipeline development over immediate bottom-line returns on invested capital.
The persistent negative ROIC is a structural byproduct of the company's high-cost commercialization phase and heavy R&D investment. Investors should monitor whether the company can improve these returns as the IMCIVREE launch matures and fixed costs are better amortized across a larger revenue base.
According to recent quarterly data, the company's cash conversion cycle has fluctuated significantly, reaching 222 days in 2026Q1, which suggests that management faces ongoing challenges in optimizing inventory turnover and managing the timing of collections within the complex rare disease reimbursement landscape.
The high DIO, which peaked at 493 days in 2025Q4, indicates a potential inefficiency in inventory management or a strategic build-up of stock for international expansion. This volatility in the CCC warrants further investigation into the company's ability to streamline its supply chain as it scales.
As reported in recent balance sheet filings, RYTM's debt-to-equity ratio has climbed to 1.85 in 2026Q1, a sharp increase from historical levels, which suggests that the company is increasingly relying on debt financing to sustain its operations in the absence of positive operating cash flow.
The rapid escalation in debt levels, combined with a negative interest coverage ratio of -11.43, indicates that the company's ability to service its obligations is becoming increasingly strained. This trend suggests that the balance sheet is becoming more vulnerable to interest rate volatility and potential refinancing hurdles.
Based on an analysis of the company's business model, the P/E ratio is a fundamentally flawed metric for RYTM, as it obscures the company's high-growth, pre-profit status and fails to account for the significant non-cash expenses that distort the reported net income figures.
Investors should instead focus on EV/Sales or patient-based growth metrics, as the P/E ratio provides no insight into the underlying commercial traction of IMCIVREE. Relying on earnings-based multiples in this context may lead to an incorrect assessment of the company's true economic value and growth trajectory.
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying RYTM stock.
Rhythm Pharmaceuticals, Inc.'s current P/E ratio is -36.8x. This places it at the 50th percentile of its historical range.
Rhythm Pharmaceuticals, Inc.'s return on equity (ROE) is -129.5%. The historical average is -78.3%.
Based on historical data, Rhythm Pharmaceuticals, Inc. is trading at a P/E of -36.8x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Rhythm Pharmaceuticals, Inc. has 89.7% gross margin and -101.2% operating margin.