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Ironwood PharmaceuticalsIRWD -6.98%65 Debt-to-EBITDA is 1.22 as of Jun. 2026, which is 33% below its 10-year median of 1.82. 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 681 Drug Manufacturers companies, Ironwood Pharmaceuticals ranks better than 50.22% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Ironwood Pharmaceuticals's Debt-to-EBITDA or its related term are showing as below:
IRWD'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -67.95 Med: 1.82 Max: 5.98
Current: 1.64
During the past 13 years, the highest Debt-to-EBITDA Ratio of Ironwood Pharmaceuticals was 5.98. The lowest was -67.95. And the median was 1.82.
IRWD's Debt-to-EBITDA is ranked better than 50.22% of 681
companies
in the Drug Manufacturers industry
Industry Median: 1.64
vs IRWD: 1.64
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Ironwood Pharmaceuticals Debt-to-EBITDA Related Terms
Ironwood Pharmaceuticals Debt-to-EBITDA Historical Data
* 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.
IRWD vs TLRY, AQST, ELTP: Debt-to-EBITDA Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Ironwood Pharmaceuticals's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ironwood Pharmaceuticals's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Ironwood Pharmaceuticals's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Jun. 2026) EBITDA data.
Ironwood Pharmaceuticals (IRWD) has a Debt-to-EBITDA of 1.22 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Ironwood Pharmaceuticals. This is 33% below median its historical median of 1.82. According to the industry distribution chart, Ironwood Pharmaceuticals ranks #339 out of 681 companies in the Drug Manufacturers industry, placing it in the top 49.8%.
Is Ironwood Pharmaceuticals' Debt-to-EBITDA too high?
Ironwood Pharmaceuticals' current Debt-to-EBITDA of 1.22 is 33% below median its 10-year median of 1.82. The Drug Manufacturers industry median Debt-to-EBITDA is 1.64. Ironwood Pharmaceuticals' value of 1.22 is 25.6% below this industry median. Based on the distribution chart, Ironwood Pharmaceuticals ranks #339 out of 681 companies in the Drug Manufacturers industry, which is above the industry midpoint. 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' Debt-to-EBITDA compare to TLRY and AQST?
According to the Drug Manufacturers industry distribution chart, Ironwood Pharmaceuticals ranks #339 out of 681 companies for Debt-to-EBITDA. This puts Ironwood Pharmaceuticals in the upper half of its industry. The industry median Debt-to-EBITDA is 1.64. Ironwood Pharmaceuticals' value of 1.22 is 25.6% below this benchmark. While the company's 10-year median is 1.82 vs. the industry median of 1.64, Ironwood Pharmaceuticals has consistently been below 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 Debt-to-EBITDA for a Drug Manufacturers company?
The median Debt-to-EBITDA among Drug Manufacturers companies is 1.64, based on 681 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ironwood Pharmaceuticals's current Debt-to-EBITDA of 1.22 is 25.6% below 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Ironwood Pharmaceuticals. For the Drug Manufacturers industry, the median Debt-to-EBITDA is 1.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ironwood Pharmaceuticals's current Debt-to-EBITDA is 1.22, which is 33% below median its own 10-year median of 1.82. 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 $4.07 — trading 10.7% below its estimated fair value. The current Debt-to-EBITDA is 1.22, which is 33% below median its 10-year median of 1.82 and 25.6% below the Drug Manufacturers industry median of 1.64. 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 Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Ironwood Pharmaceuticals (IRWD), the current Debt-to-EBITDA is 1.22 as of Jun. 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 $4.07 is trading 10.7% below its estimated GF Value™ of $4.55.
GuruFocus considers Ironwood Pharmaceuticals to be Modestly Undervalued.
Key valuation signals for IRWD:
Debt-to-EBITDA: 1.22 (33% below median its 10-year median of 1.82)
GF Value™: $4.55 vs. price of $4.07 (10.7% below fair value)
Industry Position: 25.6% below the Drug Manufacturers median (#339 of 681)
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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