Latest Ratios: P/E Ratio -1.6x · EV/EBITDA N/A · ROE -1480.2%. (2011–2025 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 | $336M | $535M | $185M | $180M | $77M | $358M | $327M | $100M | $233M | $118M | $41M |
| Enterprise Value | $208M | $407M | $138M | $143M | $30M | $339M | $281M | $164M | $224M | $51M | $9M |
| P/E Ratio → | -1.61 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 10.87 | 17.31 | 18.46 | — | 29.84 | 174.15 | 3.69 | 5.72 | 8.72 | — | — |
| P/B Ratio | 5.88 | 9.35 | — | 3.13 | 1.63 | 4.08 | 2.83 | 13.93 | 1.87 | 2.04 | 0.57 |
| 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 | — | 13.16 | 13.81 | — | 11.40 | 165.35 | 3.18 | 9.39 | 8.37 | — | — |
| 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 | 82.9% | 82.9% | 100.0% | — | 100.0% | 100.0% | 61.9% | 83.9% | 97.8% | — | — |
| Operating Margin | -550.3% | -550.3% | -1149.6% | — | -2809.6% | -2991.2% | -55.8% | -758.1% | -354.8% | — | — |
| Net Profit Margin | -677.6% | -677.6% | -1306.4% | — | -2843.3% | -3468.1% | -76.5% | -854.8% | -271.1% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -1480.2% | -1480.2% | -917.4% | -166.8% | -109.4% | -70.2% | -110.6% | -227.0% | -79.6% | -104.3% | -41.7% |
| ROA | -120.4% | -120.4% | -104.0% | -71.4% | -72.5% | -54.1% | -45.2% | -70.7% | -39.5% | -78.2% | -37.0% |
| ROIC | — | — | — | -672.3% | -158.5% | -66.0% | -52.4% | -106.7% | -135.1% | -335.8% | -47.2% |
| ROCE | -139.0% | -139.0% | -118.6% | -93.6% | -89.2% | -54.0% | -39.1% | -74.5% | -60.6% | -93.3% | -42.1% |
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 | 1.34 | 1.34 | — | 0.72 | 0.57 | 0.04 | 0.20 | 14.99 | 0.97 | 0.26 | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -2.24 | — | -0.63 | -1.01 | -0.21 | -0.39 | 8.92 | -0.08 | -1.17 | -0.45 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | -149.50 | -149.50 | -27.60 | -20.11 | -33.54 | -6.14 | -3.28 | -6.24 | -11.47 | -120.29 | — |
Net cash position: cash ($205M) exceeds total debt ($77M)
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 | 3.09 | 3.09 | 3.07 | 5.45 | 4.29 | 5.69 | 8.48 | 2.84 | 6.83 | 5.13 | 7.40 |
| Quick Ratio | 3.07 | 3.07 | 3.07 | 5.45 | 4.29 | 5.69 | 8.48 | 2.74 | 6.82 | 5.13 | 7.40 |
| Cash Ratio | 2.84 | 2.84 | 2.87 | 5.20 | 4.06 | 5.39 | 8.26 | 2.53 | 6.73 | 5.06 | 7.36 |
| Asset Turnover | — | 0.13 | 0.10 | — | 0.03 | 0.02 | 0.57 | 0.12 | 0.10 | — | — |
| Inventory Turnover | 2.89 | 2.89 | — | — | — | — | — | 0.91 | 1.80 | — | — |
| Days Sales Outstanding | — | 104.05 | 7.30 | — | 4.36 | 91.74 | 0.99 | 52.78 | 4.18 | — | — |
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 | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| 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% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $69M | $36M | $22M | $16M | $15M | $13M | $6M | $6M | $3M | $3M |
Binary clinical trial outcomes
Based on reported figures, Verastem trades at a price-to-sales multiple of 8.48, which appears elevated relative to the company's lack of recurring commercial revenue and suggests that investors are pricing in significant future success for the avutometinib pipeline rather than current operational performance.
The high P/S ratio reflects market optimism regarding the potential for the RAF/MEK clamp mechanism to disrupt the oncology landscape. However, given the absence of forward P/E or EBITDA multiples, this valuation remains highly speculative and sensitive to binary clinical readouts rather than fundamental earnings growth.
As reported in financial statements, Verastem's ROIC has consistently trended in negative territory, reaching -149.2% in 2024Q1, which underscores the company's inability to generate positive returns on invested capital while it remains in a capital-intensive, pre-commercial research phase.
The persistent decay in returns on capital is a direct consequence of high R&D spending relative to the lack of commercialized product revenue. Investors should monitor whether the company can achieve a positive inflection in ROIC as it approaches potential regulatory milestones, though current trends suggest significant ongoing capital destruction.
According to recent SEC filings, Verastem's cash conversion cycle exhibits extreme volatility, swinging from -239 days in 2026Q1 to -1264 days in 2025Q2, which highlights the lumpy nature of milestone-based revenue recognition and the timing of payments to clinical research organizations.
The negative CCC is not indicative of operational efficiency but rather the timing mismatch between milestone receipts and the ongoing, heavy cash outflows for clinical trials. This volatility makes traditional working capital analysis less meaningful, as the company lacks the steady-state inventory or accounts receivable cycles of a commercial entity.
Based on reported figures, Verastem's debt-to-equity ratio has risen to 1.05 as of 2026Q1, indicating a growing reliance on debt financing to sustain its research-heavy operations compared to the lower leverage levels observed in previous fiscal periods.
The rising debt load, coupled with deeply negative interest coverage ratios, suggests that the company's ability to service its obligations is becoming increasingly strained. This leverage profile warrants close monitoring, as it limits the company's financial flexibility and increases the risk of further dilutive capital raises.
The most commonly misapplied ratio for Verastem is the gross margin, which, at 82.86%, appears deceptively strong but obscures the fact that it is derived from non-recurring milestone payments rather than sustainable, high-margin commercial product sales.
Investors should instead focus on the 'Net Burn Rate' and cash runway, as these metrics provide a more accurate assessment of the company's survival horizon. Relying on gross margin as a proxy for earning power is misleading in a clinical-stage biotech context where COGS is negligible compared to the massive R&D overhead.
Includes 30+ ratios · 15 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying VSTM stock.
Verastem, Inc.'s current P/E ratio is -1.6x. This places it at the 50th percentile of its historical range.
Verastem, Inc.'s return on equity (ROE) is -1480.2%. The historical average is -95.3%.
Based on historical data, Verastem, Inc. is trading at a P/E of -1.6x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Verastem, Inc. has 82.9% gross margin and -550.3% operating margin.