Ironwood Pharmaceuticals, Inc. logo IRWD - Ironwood Pharmaceuticals, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 11
HOLD 16
SELL 3
STRONG
SELL
0
| PRICE TARGET: $4.80 DETAILS
HIGH: $5.70
LOW: $3.70
MEDIAN: $5.00
CONSENSUS: $4.80
UPSIDE: 22.45%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Strong
Trading 50.4% below fair value
Current Price $3.92
Bear Case $6.78 72.9% upside ($6.78 - $3.92) / $3.92 = 72.9% $0.66 × 12x P/E
Fair Value $7.91 101.7% upside ($7.91 - $3.92) / $3.92 = 101.7% $0.66 × 14x P/E
Bull Case $9.04 130.6% upside ($9.04 - $3.92) / $3.92 = 130.6% $0.66 × 16x P/E

Adjust Assumptions

14.0x
0.66$

Key Value Driver

Normalized P/E multiple (14x base case)

Implied Market Multiple 5.9x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $4.80 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $7.91 per share.

Warnings

The company's reported profits differ from official accounting profits by 340%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $4.80 (from 30 analysts). Our estimate is 93% above the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples