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Praxis Precision Medicines's Enterprise Value for the quarter that ended in Mar. 2026 was $8,190.78 Mil.
Praxis Precision Medicines's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $-357.33 Mil. Praxis Precision Medicines's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was -4.36%.
The historical rank and industry rank for Praxis Precision Medicines's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
PRAX'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: -405.33 Med: -17.57 Max: 7772
Current: -3.79
During the past 8 years, the highest Earnings Yield (Joel Greenblatt) of Praxis Precision Medicines was 7772.00%. The lowest was -405.33%. And the median was -17.57%.
PRAX's Earnings Yield (Joel Greenblatt) % is ranked better than 64.77% of 1337
companies
in the Biotechnology industry
Industry Median: -10.31
vs PRAX: -3.79
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Praxis Precision Medicines's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 0.00%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Praxis Precision Medicines Earnings Yield (Joel Greenblatt) % Related Terms
Praxis Precision Medicines Earnings Yield (Joel Greenblatt) % Historical Data
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The historical data trend for Praxis Precision Medicines's Earnings Yield (Joel Greenblatt) % 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.
For the Biotechnology subindustry, Praxis Precision Medicines's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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.
Praxis Precision Medicines Earnings Yield (Joel Greenblatt) % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Praxis Precision Medicines's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Praxis Precision Medicines's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Praxis Precision Mediciness Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Praxis Precision Medicines's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-357.33 Mil.
What does a Earnings Yield (Joel Greenblatt) % of -4.36% mean?
Praxis Precision Medicines (PRAX) has a Earnings Yield (Joel Greenblatt) % of -4.36% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Praxis Precision Medicines and its competitors. According to the industry distribution chart, Praxis Precision Medicines ranks #471 out of 1337 companies in the Biotechnology industry, placing it in the top 35.2%.
Is Praxis Precision Medicines' Earnings Yield (Joel Greenblatt) % too high?
Praxis Precision Medicines' current Earnings Yield (Joel Greenblatt) % is -4.36%. Based on the distribution chart, Praxis Precision Medicines ranks #471 out of 1337 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Praxis Precision Medicines has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Praxis Precision Medicines' Earnings Yield (Joel Greenblatt) % compare to KYMR and SYRE?
According to the Biotechnology industry distribution chart, Praxis Precision Medicines ranks #471 out of 1337 companies for Earnings Yield (Joel Greenblatt) %. This puts Praxis Precision Medicines in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Yield (Joel Greenblatt) % for a Biotechnology company?
A good Earnings Yield (Joel Greenblatt) % depends on the Biotechnology industry context. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Praxis Precision Medicines and its competitors. Praxis Precision Medicines's current Earnings Yield (Joel Greenblatt) % is -4.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Praxis Precision Medicines stock overvalued right now?
Based on GuruFocus' analysis, Praxis Precision Medicines (PRAX) is currently considered Significantly Overvalued. The stock's GF Value™ is $19.27, compared to a current price of $366.77 — trading 1803.3% above its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is -4.36%. Praxis Precision Medicines' overall GF Score™ is 38/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Praxis Precision Medicines (PRAX), the current Earnings Yield (Joel Greenblatt) % is -4.36% as of Mar. 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 Praxis Precision Medicines (PRAX) Overvalued in 2026?
Based on GuruFocus' analysis, Praxis Precision Medicines stock appears to be overvalued.
The current stock price of $366.77 is trading 1803.3% above its estimated GF Value™ of $19.27.
GuruFocus considers Praxis Precision Medicines to be Significantly Overvalued.
Key valuation signals for PRAX:
Earnings Yield (Joel Greenblatt) %: -4.36%
GF Value™: $19.27 vs. price of $366.77 (1803.3% above fair value)
No single metric tells the full story. See the PRAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Praxis Precision Medicines Inc is a clinical-stage biopharmaceutical company. It is engaged in translating genetic insights into the development of therapies for patients affected by central nervous system disorders characterized by a neuronal excitation-inhibition imbalance. The company applies genetic insights to the discovery and development of therapies for neurological disorders through two proprietary platforms: Cerebrum and Solidus. It has established a diversified, multimodal CNS portfolio with four clinical-stage product candidates across movement disorders and epilepsy, which include Ulixacaltamide, Relutrigine, Vormatrigine, and Elsunersen. The firm operates in only one segment and is focused on discovering and developing therapies for CNS disorders.
38GF Score
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