Oversold

IRWD

Valuation89/ 100
Cash flow & growth86/ 100
Upside potential79/ 100
Risk potential23/ 100

IRWD's valuation is historically cheap, fundamentals are above averages and forward estimates point to improving growth and profitability, though analyst coverage is limited.

Score change since last week

The score rose 11 points, mainly due to valuation and price changes. Price rose 3.1%, from $4.13 to $4.26.

Valuation and price changes added 10.9 points. The comparison uses the same available inputs on both dates. Displayed changes are rounded to whole points.

Valuation

Historical cheapness: current PE is 5.5× versus the full-history median of 12.6× shown in the valuation table, producing 88.4/100. Positive weekly observations receive equal weight; lower past EPS alone does not disqualify them.

Outlook-adjusted valuation: 89.2/100. The model applies a 19.9% earnings-growth assumption and a 10% annual return hurdle, with positive credit limited by evidence coverage and confidence.

Forward price scenarios use recent PE history separately. Recent history has a separately weighted median of 12.6× (18-month half-life). The favorable scenario uses 8.2× PE and $1 projected EPS, informed by growth, margins and earnings-quality checks. This is a model scenario, not an analyst target. A return to the full-history median is not assumed.

Cash flow & growth

Business trends are strong. Over the past year: revenue +26.2%, operating margin +36.9 percentage points. Free cash flow is 47.7% of revenue. The business score is 86.2/100. Growth, margins and cash generation drive the score. Missing or older data receives less weight.

Favorable scenario

Stronger earnings and valuation could support a higher share price.

Our favorable case uses $1.00 of EPS and a 8.2× PE, suggesting a share price of about $8.15 — 91% above today’s price. Valuation history and outlook inform the PE.

This is a scenario based on our model, not a forecast or probability.

Downside scenario

Weaker than expected earnings could put pressure on the share price.

Our downside case uses $0.65 of EPS and a 5× PE, suggesting a share price of about $3.28 — 23% below today’s price. Valuation history and outlook inform the PE.

This is a scenario based on our model, not a forecast or probability.

IRWD vs Historical averages

MetricCurrentAverageRelative
PE5.6x22x75% lower
PE percentile235054% lower
EPS$0.77-$0.19$0.96 higher
FCF$185.6M$184.2M1% higher
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IRWD’s earnings and cash flow are above their historical averages, while its earnings multiple is lower.

IRWD Forward outlook

MetricOutlook
Forward valuationStrongly improving
Forward earningsStrong growth
Forward revenueStrong growth
Forward profitabilityStrongly expanding
Analyst coverageLimited
Estimate dispersionTight

IRWD’s outlook is generally improving, though analyst coverage is limited.

IRWD PE Valuation

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This table applies IRWD's historical price-to-earnings (PE) landmarks to current earnings. The implied prices are valuation scenarios, not price forecasts or targets.

IRWD Earnings Per Share

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This chart tracks IRWD's trailing twelve-month diluted earnings per share, calculated from four consecutive reported quarters to reduce seasonal noise.

IRWD Quarterly Revenue

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This chart tracks IRWD's quarterly revenue over time and shows how sales are changing from year to year.

IRWD Free Cash Flow

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This chart tracks IRWD's free cash flow over time, showing whether the business is consistently generating cash after operating costs and capital spending.

IRWD Total Shares

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This chart tracks changes in IRWD's diluted share count. A rising count can dilute existing owners, while a falling count often reflects share repurchases.

IRWD Net Leverage

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Quarterly Net Leverage uses the last 12 months of EBITDA. A falling multiple generally indicates less debt relative to earnings capacity. Negative values mean net cash; missing data or nonpositive LTM EBITDA are N/A. The table shows each period’s Net Leverage and status.

IRWD PE vs Healthcare Sector

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This chart compares IRWD's price-to-earnings (PE) ratio with the Healthcare sector average. A discount or premium can reflect differences in expected growth, profitability, or risk.

IRWD Weekly Price

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This chart uses IRWD's weekly closing prices to show the longer-term trend. The lower panes show weekly RSI and Stochastic momentum.

IRWD Weekly Moving Averages

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This chart compares IRWD's 8, 20, 50, 100, and 200-week moving averages from 2020 onward. Shorter averages react faster to price changes, while longer averages show the broader trend.

IRWD Yearly ROI

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Each line starts at 0% using the year’s first dependable weekly close and tracks the return through December, or through the latest available week for the current year.