Ironwood Pharmaceuticals, Inc (IRWD) Fair Value & Analysis

Healthcare · US · Market cap $583M

A solid business, but screening 30% overvalued on our models.

What matters now

• A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
• The price sits above even our optimistic bull case ($3.99). The favourable scenario is already priced in.
• A fairly wide model range ($2.05 to $3.99) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range $0.5663 – $15.45 · fair‑value band $2.05 – $3.99 · the $4.32 price screens above the $3.03 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Ironwood Pharmaceuticals, Inc (IRWD) currently trades at $4.32, while our model-based Fair Value estimate is $3.03, implying the stock looks roughly 30.0% overvalued today. The Quality Score stands at 70/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Ironwood Pharmaceuticals, Inc generated revenue of $362M at a net margin of 28.3%. Revenue grew 158.9% year over year. Net debt stands at $382M. The stock trades on a trailing P/E of 5.7. Fundamentals as of Jul 18, 2026

Our scenario range runs from $2.05 (bear case) to $3.99 (bull case); at $4.32, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 25% below its 52-week high, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -49% fair-value upside, at -30%, IRWD screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Dividend Discount ($8.64) versus Earnings-Based ($2.11). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

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.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

IRWD screens 30% overvalued. Compare with Jiangsu Hengrui Pharmaceuticals Co →

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

• Ironwood Appoints Dr. Jeffrey Silber As Chief Medical Officer; STARS-2 Trial Actively Recruiting Nasdaq · Jul 14, 2026
• Can Linzess Continue Driving IRWD's Revenue Growth Through 2026? Yahoo Finance · Jun 11, 2026

Peer Group

Drug Manufacturers - Specialty & Generic · 626 stocks

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.

Valuation Multiples vs Drug Manufacturers - Specialty & Generic median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.