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Ironwood PharmaceuticalsIRWD -6.06%65 Cyclically Adjusted PB Ratio is 102.63 as of Aug. 20, 2026, which is 473% above its 10-year median of 17.90. GuruFocus rates IRWD with a GF Score™ of 65/100 and a GF Value™ of $4.55 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 690 Drug Manufacturers companies, Ironwood Pharmaceuticals ranks worse than 99.57% on this metric.
The historical rank and industry rank for Ironwood Pharmaceuticals's Cyclically Adjusted PB Ratio or its related term are showing as below:
IRWD'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.67 Med: 17.9 Max: 115.76
Current: 115.76
During the past years, Ironwood Pharmaceuticals's highest Cyclically Adjusted PB Ratio was 115.76. The lowest was 1.67. And the median was 17.90.
IRWD's Cyclically Adjusted PB Ratio is ranked worse than 99.57% of 690
companies
in the Drug Manufacturers industry
Industry Median: 1.74
vs IRWD: 115.76
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Ironwood Pharmaceuticals's adjusted book value per share data for the three months ended in Jun. 2026 was $-0.979. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $0.04 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Ironwood Pharmaceuticals (NAS:IRWD) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Ironwood Pharmaceuticals Cyclically Adjusted PB Ratio Related Terms
Ironwood Pharmaceuticals Cyclically Adjusted PB Ratio Historical Data
* Premium members only.
The historical data trend for Ironwood Pharmaceuticals's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Ironwood Pharmaceuticals Cyclically Adjusted PB Ratio Chart
IRWD vs TLRY, AQST, ELTP: Cyclically Adjusted PB Ratio Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Ironwood Pharmaceuticals's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ironwood Pharmaceuticals Cyclically Adjusted PB Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ironwood Pharmaceuticals's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Ironwood Pharmaceuticals's Cyclically Adjusted PB Ratio falls into.
Ironwood Pharmaceuticals Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 102.63 mean?
Ironwood Pharmaceuticals (IRWD) has a Cyclically Adjusted PB Ratio of 102.63 as of Aug. 20, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Ironwood Pharmaceuticals and its competitors. This is 473% above median its historical median of 17.90. Over the past decade, Ironwood Pharmaceuticals' Cyclically Adjusted PB Ratio has ranged from 1.67 to 115.76. According to the industry distribution chart, Ironwood Pharmaceuticals ranks #687 out of 690 companies in the Drug Manufacturers industry, placing it in the top 99.6%.
Is Ironwood Pharmaceuticals' Cyclically Adjusted PB Ratio too high?
Ironwood Pharmaceuticals' current Cyclically Adjusted PB Ratio of 102.63 is 473% above median its 10-year median of 17.90. Over the past 10 years, this metric has ranged from a low of 1.67 to a high of 115.76. The Drug Manufacturers industry median Cyclically Adjusted PB Ratio is 1.74. Ironwood Pharmaceuticals' value of 102.63 is 5798.3% above this industry median. Based on the distribution chart, Ironwood Pharmaceuticals ranks #687 out of 690 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Ironwood Pharmaceuticals has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ironwood Pharmaceuticals' Cyclically Adjusted PB Ratio compare to TLRY and AQST?
According to the Drug Manufacturers industry distribution chart, Ironwood Pharmaceuticals ranks #687 out of 690 companies for Cyclically Adjusted PB Ratio. This places Ironwood Pharmaceuticals in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 1.74. Ironwood Pharmaceuticals' value of 102.63 is 5798.3% above this benchmark. Historically, Ironwood Pharmaceuticals' own Cyclically Adjusted PB Ratio has ranged from 1.67 to 115.76 over the past decade. While the company's 10-year median is 17.90 vs. the industry median of 1.74, Ironwood Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Drug Manufacturers company?
The median Cyclically Adjusted PB Ratio among Drug Manufacturers companies is 1.74, based on 690 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ironwood Pharmaceuticals's current Cyclically Adjusted PB Ratio of 102.63 is 5798.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Ironwood Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Cyclically Adjusted PB Ratio is 1.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ironwood Pharmaceuticals's current Cyclically Adjusted PB Ratio is 102.63, which is 473% above median its own 10-year median of 17.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ironwood Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Ironwood Pharmaceuticals (IRWD) is currently considered Modestly Undervalued. The stock's GF Value™ is $4.55, compared to a current price of $4.11 — trading 9.8% below its estimated fair value. The current Cyclically Adjusted PB Ratio is 102.63, which is 473% above median its 10-year median of 17.90 and 5798.3% above the Drug Manufacturers industry median of 1.74. Ironwood Pharmaceuticals' overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Ironwood Pharmaceuticals (IRWD), the current Cyclically Adjusted PB Ratio is 102.63 as of Aug. 20, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ironwood Pharmaceuticals (IRWD) Overvalued in 2026?
Based on GuruFocus' analysis, Ironwood Pharmaceuticals stock appears to be undervalued.
The current stock price of $4.11 is trading 9.8% below its estimated GF Value™ of $4.55.
GuruFocus considers Ironwood Pharmaceuticals to be Modestly Undervalued.
Key valuation signals for IRWD:
Cyclically Adjusted PB Ratio: 102.63 (473% above median its 10-year median of 17.90)
GF Value™: $4.55 vs. price of $4.11 (9.8% below fair value)
Industry Position: 5798.3% above the Drug Manufacturers median (#687 of 690)
No single metric tells the full story. See the IRWD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ironwood Pharmaceuticals Inc is a biotechnology company developing and commercializing life-changing therapies for people living with gastrointestinal, or GI, and rare diseases. It is focused on the development and commercialization of inventive product opportunities in areas of unmet need, leveraging its demonstrated expertise and capabilities in GI and rare diseases. LINZESS is its commercial product. LINZESS is also available for the treatment of adults with IBS-C or CIC in Mexico, adults with IBS-C or chronic constipation in Japan, and adults with IBS-C in China. Linaclotide is available under the trademarked name CONSTELLA for the treatment of adults with IBS-C or CIC and pediatric patients ages 6-17 years old with FC in Canada, and to adults with IBS-C in certain European countries.
65GF Score
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