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: $3.70 DETAILS
HIGH: $3.70
LOW: $3.70
MEDIAN: $3.70
CONSENSUS: $3.70
DOWNSIDE: 7.50%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Strong
Trading 47.2% below fair value
Current Price $4.00
Bear Case $6.50 62.4% upside ($6.50 - $4.00) / $4.00 = 62.4% $0.66 × 12x P/E
Fair Value $7.58 89.5% upside ($7.58 - $4.00) / $4.00 = 89.5% $0.66 × 14x P/E
Bull Case $8.66 116.5% upside ($8.66 - $4.00) / $4.00 = 116.5% $0.66 × 16x P/E

Adjust Assumptions

14.0x
0.66$

Key Value Driver

Normalized P/E multiple (14x base case)

Implied Market Multiple 6.1x

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 $3.70 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $7.58 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 $3.70 (from 30 analysts). Our estimate is 150% 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