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WVEWave Life Sciences Ltd.
$6.38$1.2B
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  4. Financial Ratios

Wave Life Sciences Ltd. (WVE) Financial Ratios

Latest Ratios: P/E Ratio -5.3x · EV/EBITDA N/A · ROE -55.6%. (2013–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

WVE Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$1.2B$2.9B$1.7B$536M$552M$163M$309M$272M$1.2B$931M$596M
Enterprise Value$643M$2.3B$1.4B$368M$501M$42M$154M$157M$1.1B$792M$446M
P/E Ratio →-5.27——————————
P/S Ratio28.7367.1015.794.73151.273.9715.3816.9984.50251.25401.51
P/B Ratio2.045.458.1613.52—5.013.413.7916.606.664.42
P/FCF———————————
P/OCF———————————

P/E links to full P/E history page with 30-year chart

WVE EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—53.4313.243.24137.331.037.659.8273.09213.71300.35
EV / EBITDA———————————
EV / EBIT———————————
EV / FCF———————————

WVE Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin79.3%79.3%100.0%100.0%100.0%100.0%-552.2%-997.6%-832.6%-2041.2%73.5%
Operating Margin-504.1%-504.1%-101.9%-60.0%-4459.3%-310.1%-763.9%-1303.4%-1106.7%-2769.4%-3725.7%
Net Profit Margin-478.3%-478.3%-89.6%-50.8%-4434.7%-298.4%-746.7%-1211.5%-1017.4%-2754.7%-3730.7%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-55.6%-55.6%-77.9%-145.1%—-198.5%-184.8%-267.2%-137.6%-74.3%-38.4%
ROA-41.3%-41.3%-30.9%-27.3%-91.6%-50.3%-53.2%-66.7%-61.4%-58.9%-33.6%
ROIC—————————-10056.9%—
ROCE-54.9%-54.9%-67.0%-83.2%-149.5%-84.4%-94.6%-125.5%-97.2%-65.2%-35.2%

WVE Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.030.030.120.81—0.920.320.450.140.020.00
Debt / EBITDA———————————
Net Debt / Equity—-1.11-1.32-4.25—-3.71-1.71-1.60-2.24-0.99-1.11
Net Debt / EBITDA———————————
Debt / FCF———————————
Interest Coverage——————-9586.06—-7251.05-17065.17-165.34

Net cash position: cash ($602M) exceeds total debt ($18M)

WVE Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio6.476.472.891.261.382.531.901.571.567.6712.50
Quick Ratio6.476.472.891.261.382.531.901.571.567.6712.50
Cash Ratio6.336.332.721.071.242.351.521.251.347.2612.36
Asset Turnover—0.070.310.410.020.200.070.060.050.020.01
Inventory Turnover———————————
Days Sales Outstanding—10.904.7967.93——545.40456.74253.2398.54—

WVE Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield———————————
FCF Yield———————————
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Shares Outstanding—$169M$138M$106M$79M$52M$39M$34M$29M$27M$23M

Key Metrics

Growth RegimeMixed
ProfitabilityNegative
Balance SheetHealthy
Cash FlowBurning
Top Statement Risk

Clinical milestone dependency

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Platform Optionality Drives Premium Valuation

According to recent market data, WVE trades at a price-to-sales multiple of 26.25, which appears to reflect investor optimism regarding the PRISM platform's long-term potential rather than current revenue, as the company remains in a pre-commercial stage with no meaningful earnings to support traditional valuation metrics.

The elevated P/S ratio suggests that the market is pricing WVE as a high-growth biotechnology platform rather than a traditional pharmaceutical entity. Investors should monitor whether this valuation premium holds as clinical data readouts approach, as any failure to validate the AIMer technology could lead to a significant contraction in these multiples.

Collaboration Revenue Masks Operational Losses

As reported in financial statements, WVE's gross margin of 79.28% is structurally high due to the nature of milestone-based collaboration accounting, yet this figure fails to reflect true earning power, as the company continues to record significant operating losses driven by heavy investment in clinical-stage research.

The high gross margin is an artifact of accounting for partnership payments against minimal direct costs, rather than a reflection of commercial product profitability. Analysts should focus on operating margins, which remain deeply negative, to gauge the true underlying burn rate and the efficiency of the company's R&D spending.

Robust Cash Position Mitigates Risk

Based on the 2026Q1 balance sheet, WVE maintains a strong liquidity profile with a current ratio of 11.26, providing a substantial buffer that appears sufficient to fund ongoing clinical development programs without the immediate necessity for dilutive equity financing in the near term.

This liquidity position is a critical safeguard for a company that lacks consistent product revenue and relies on milestone payments. The high current ratio suggests that the company is well-positioned to weather potential delays in clinical trials, though investors should remain cautious regarding the long-term sustainability of this cash runway.

Misapplication of Traditional Revenue Metrics

The most commonly misapplied metric for WVE is the price-to-sales ratio, which obscures the reality that current revenue is derived from non-recurring collaboration milestones rather than sustainable product demand, warranting the use of cash-runway-to-data metrics as a more accurate indicator of the company's fundamental health.

Using P/S to evaluate WVE is misleading because it treats transactional milestone payments as recurring revenue, which can lead to an overestimation of the company's commercial maturity. A more appropriate analytical framework would involve adjusting for deferred revenue and focusing on the cash burn rate relative to upcoming clinical milestones.

Download Financial Ratios Data

Includes 30+ ratios · 13 years · Updated daily

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WVE — Frequently Asked Questions

Quick answers to the most common questions about buying WVE stock.

What is Wave Life Sciences Ltd.'s P/E ratio?

Wave Life Sciences Ltd.'s current P/E ratio is -5.3x. This places it at the 50th percentile of its historical range.

What is Wave Life Sciences Ltd.'s ROE?

Wave Life Sciences Ltd.'s return on equity (ROE) is -55.6%. The historical average is -132.9%.

Is WVE stock overvalued?

Based on historical data, Wave Life Sciences Ltd. is trading at a P/E of -5.3x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are Wave Life Sciences Ltd.'s profit margins?

Wave Life Sciences Ltd. has 79.3% gross margin and -504.1% operating margin.