Ironwood Pharmaceuticals Inc (IRWD) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Ironwood Pharmaceuticals Inc stock $4.83, price $4.39, upside +10.0%, quality 74 out of 100. Rating: fairly valued. Calculated from audited financials with 21 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range $0.5663 – $15.45 · fair‑value band $3.62 – $7.06 · the $4.39 price screens below the $4.83 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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Ironwood Pharmaceuticals, Inc., a biotechnology company, focuses on the development and commercialization of therapies for gastrointestinal (GI) and rare diseases in the United States and internationally.
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It sells linaclotide, a guanylate cyclase type-C (GC-C) agonist for the treatment of adults suffering from irritable bowel syndrome with constipation or chronic idiopathic constipation, as well as for pediatric patients suffering from functional constipation under the LINZESS and CONSTELLA names.
The company is also developing IW-3300, a GC-C agonist for the treatment of visceral pain conditions, including interstitial cystitis/bladder pain syndrome and endometriosis; and Apraglutide, a synthetic peptide long-acting analog of glucagon-like peptide-2 for short bowel syndrome patients dependent on parenteral support, as well as for acute graft versus host disease.
It has strategic partnerships with AbbVie Inc., AstraZeneca AB, and Astellas Pharma Inc. for the development and commercialization of linaclotide. The company was formerly known as Microbia, Inc. and changed its name to Ironwood Pharmaceuticals, Inc. in April 2008.
Ironwood Pharmaceuticals, Inc. was incorporated in 1998 and is headquartered in Boston, Massachusetts.
Stock analysis
Ironwood Pharmaceuticals Inc (IRWD) currently trades at $4.39, while our model-based Fair Value estimate is $4.83, so the stock looks roughly fairly valued today (gap 9.1%).
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Valuation
Bull case: the Growth DCF group reads highest at a median of $13.35 per share, and 13 of the 21 models we run sit above the $4.39 price.
Bear case: the Economic Profit group reads lowest at $1.88, and 8 of the 21 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $3.62 (bear) to $7.06 (bull), the price of $4.39 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 74/100 (solid quality), in the Healthcare sector.
Mixed Growth: Spin-off in 2025: revenue and profit before it include the divested business. Growth is measured afresh from 2025.
Ironwood Pharmaceuticals Inc reported revenue of $296M in FY2025 versus $414M in FY2021, a compound −8.0%/yr. Reported net income was $24.0M in FY2025, compounding −53.8%/yr from FY2021.
Key figures
Market cap $726M Small · P/E ratio 4.9 · P/S ratio 1.87 · EPS (TTM) $0.9000 · Net margin 33.4% · Return on equity −575% · Return on assets (EBIT) −20.2% (5-year average) · Operating margin 70.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 63 out of 100 (medium confidence).
What moves the price
The share trades about 19% below its 52-week high and 129% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −27% fair-value upside, at 10%, IRWD screens cheaper than that median.
Fair Value models
Bear$3.62Fair Value $4.83Bull$7.06
Price $4.39 · Upside +10.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($0.7718 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, 2 officers or directors sold shares worth $658,523 and none bought.
SaleRonald SilverPFO & PAO3× since Jan 5, 2026: 187,479 shares, avg. $4.43$831,182Jul 7, 2026
SaleJulie McHughDirector21,571 shares at $3.73$80,460Jun 16, 202610b5-1 plan
SaleAlexander J DennerDirector6,730,800 shares at $3.05$20.5MMar 17, 2026
SaleThomas A MCCOURTChief Executive Officer, Director198,283 shares at $3.73$739,929Feb 24, 2026
SaleTammi L GaskinsChief Commercial Officer2× since Nov 17, 2025: 27,542 shares, avg. $3.64$100,301Feb 24, 2026
SaleMinardo JohnChief Legal Officer36,492 shares at $3.73$136,177Feb 24, 2026
SaleGregory S. MartiniChief Financial Officer21,944 shares at $3.73$81,888Feb 24, 2026
SaleMichael ShetzlineSVP, CMO, Head-Res&Drug15,570 shares at $3.81$59,322Feb 23, 2026
Plus 10 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.55/100
Spin-off in 2025: revenue and profit before it include the divested business. Growth is measured afresh from 2025.
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−5.3%
Revenue growth 18 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+30.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
−18.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year−18.8%
Dividend (yield on the price)0.0%
Per share before 2019divided by the spin-off factor 1.194
Profit margin 2019 to 2024 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.28% → 27%
Growth Forecast
Little optimism in the price
The price assumes about as much growth as the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−5.5%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+13.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −7.7% a year for the price and +10.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Compare Ironwood Pharmaceuticals Inc with another stock
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Drug Manufacturers - Specialty & Generic · 549 stocks
Beats the industry median on 10/10 measures
Overall it ranks above its industry peers.
Valuation
Quality Score74 · Top 25%
Fair Value upside+10.0% · Above median
Profitability
Return on equity (12 months)Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Return on assets6.1% · Above median
Net margin (12 months)33.4% · Top 25%
Operating margin (12 months)70.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)32.6% · Top 25%
Balance sheet
Debt / equityNegative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Valuation Multiplesvs Drug Manufacturers - Specialty & Generic median · lower = cheaper
P/E (12 months)4.9× · Cheapest 25%
P/BNegative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Ironwood Pharmaceuticals Inc (IRWD) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of $4.83 versus a price of $4.39, about +10% upside (fairly valued).
What is the fair value of IRWD?
Our model-based fair value for Ironwood Pharmaceuticals Inc is $4.83 (as of Nov 7, 2026), built from audited fundamentals. The current price: $4.39.
What is the quality score of IRWD?
Ironwood Pharmaceuticals Inc has a Quality Score of 74/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Ironwood Pharmaceuticals Inc (IRWD)?
Our model-based price target is the fair value of $4.83 (as of Nov 7, 2026) from 21 valuation models. Cautious scenario $3.62, optimistic scenario $7.06. It is a calculation from audited fundamentals, not an analyst target.
What is the Ironwood Pharmaceuticals Inc stock forecast for 2026?
Our models put fair value at $4.83, about +10% upside versus a price of $4.39 (fairly valued). Cautious scenario $3.62, optimistic scenario $7.06. The calculation is refreshed regularly with new filings.
What is the revenue of Ironwood Pharmaceuticals Inc (IRWD)?
Ironwood Pharmaceuticals Inc reported trailing-twelve-month revenue of about $389M (latest available figure, as of Nov 7, 2026).
What growth is priced into Ironwood Pharmaceuticals Inc (IRWD)?
For today's price to be fair in a discounted-cash-flow model, Ironwood Pharmaceuticals Inc would have to grow free cash flow by -5.5 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -5.3 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of IRWD use?
Our models discount Ironwood Pharmaceuticals Inc at 9.8 %: a base by market capitalisation (small), damped by beta 0.24, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Ironwood Pharmaceuticals Inc that is -5.5 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has Ironwood Pharmaceuticals Inc (IRWD) delivered so far?
Over the past 5 years revenue at Ironwood Pharmaceuticals Inc grew -5.3 % a year. The price currently implies free-cash-flow growth of -5.5 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Ironwood Pharmaceuticals Inc (IRWD) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into Ironwood Pharmaceuticals Inc (-5.5 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Ironwood Pharmaceuticals Inc (IRWD)?
The free-cash-flow yield on the price is 17.49 %: that much free cash flow Ironwood Pharmaceuticals Inc produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Ironwood Pharmaceuticals Inc (IRWD)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Ironwood Pharmaceuticals Inc it is $4.83 per share (as of Nov 7, 2026), against a price of $4.39. It is the blended result of 21 valuation models in 6 families (DCF Models, Earnings-Based, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is Ironwood Pharmaceuticals Inc stock overvalued or undervalued in 2026?
As of Nov 7, 2026, IRWD trades below its calculated fair value: price $4.39, fair value $4.83, a gap of about +10% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of IRWD?
No. The price is what the market pays today ($4.39); the fair value is what the company's own numbers justify ($4.83). For Ironwood Pharmaceuticals Inc the two are $0.4390 per share apart. That gap is exactly why we show both numbers side by side.
How much is Ironwood Pharmaceuticals Inc worth?
The market values Ironwood Pharmaceuticals Inc at about $726M (market capitalisation, as of Nov 7, 2026). Per share that is $4.39; our models calculate a fair value of $4.83 per share.
What do the bullish and bearish scenarios say about IRWD?
Our models span a range for Ironwood Pharmaceuticals Inc: cautious scenario $3.62, base $4.83, optimistic $7.06 per share (as of Nov 7, 2026, price $4.39). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of IRWD?
Ironwood Pharmaceuticals Inc trades at a price-to-earnings ratio of 4.9 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $4.83 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 17.6 (reported for FY2025: 32.5). Median P/E at fiscal year-end, 6 fiscal years (2019 to 2025), reported earnings, 4 of the years ex one-offs: 14.6. Other multiples: P/S 1.9, EV/EBITDA 3.8.
How solid is the balance sheet of Ironwood Pharmaceuticals Inc (IRWD)?
Balance-sheet figures for Ironwood Pharmaceuticals Inc (as of Nov 7, 2026): negative equity, so no return on equity and no debt-to-equity ratio. They feed the Quality Score of 74/100, which measures business quality independently of the share price.
How far is IRWD from its 52-week high?
Ironwood Pharmaceuticals Inc trades at $4.39, about 19% below its 52-week high of $5.39 and 129% above the low of $1.92 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $4.83 is for.
Which stocks are comparable to Ironwood Pharmaceuticals Inc?
From the same area (Healthcare) we also value Merck KGaA, Takeda Pharmaceutical Company, Galderma Group, Teva Pharmaceutical Industries Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Ironwood Pharmaceuticals Inc stock attractive at the current price?
The data as of Nov 7, 2026: price $4.39, calculated fair value $4.83 (+10%), Quality Score 74/100, from 21 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of IRWD calculated?
We run Ironwood Pharmaceuticals Inc through 21 models from 6 families: DCF Models, Earnings-Based, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $4.83 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Ironwood Pharmaceuticals Inc currently trades 9% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Ironwood Pharmaceuticals Inc (IRWD)?
The closing price on Nov 6, 2026 was $4.39. Our model-based fair value is $4.83, about +10% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Ironwood Pharmaceuticals Inc right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($3.62 to $7.06) leaves room in how you read the outcome.
Key figures of Ironwood Pharmaceuticals Inc
How large is the market capitalisation of Ironwood Pharmaceuticals Inc (IRWD)?
The market capitalisation of Ironwood Pharmaceuticals Inc is $726M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Ironwood Pharmaceuticals Inc (IRWD)?
The price-to-sales ratio of Ironwood Pharmaceuticals Inc is 1.87 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Ironwood Pharmaceuticals Inc (IRWD)?
Earnings per share at Ironwood Pharmaceuticals Inc are $0.9000 (price ÷ EPS = P/E 4.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Ironwood Pharmaceuticals Inc (IRWD)?
The net margin of Ironwood Pharmaceuticals Inc is 33.4% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Ironwood Pharmaceuticals Inc (IRWD)?
The return on equity (ROE) of Ironwood Pharmaceuticals Inc is −575% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Ironwood Pharmaceuticals Inc (IRWD)?
On an EBIT basis the return on assets of Ironwood Pharmaceuticals Inc is −20.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Ironwood Pharmaceuticals Inc (IRWD)?
The operating margin of Ironwood Pharmaceuticals Inc is 70.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Ironwood Pharmaceuticals Inc (IRWD)?
Revenue at Ironwood Pharmaceuticals Inc is growing +32.6% versus a year earlier (3y avg −10.3%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Ironwood Pharmaceuticals Inc (IRWD)?
Earnings per share at Ironwood Pharmaceuticals Inc are growing +126% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Ironwood Pharmaceuticals Inc (IRWD) carry?
The net debt of Ironwood Pharmaceuticals Inc is $382M (fiscal year 2025, ≈ 3.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 7, 2026