PRAX (Praxis Precision Medicines) ROCE %: -37.01% (As of Mar. 2026)

What is Praxis Precision Medicines ROCE %?

Praxis Precision Medicines PRAX +4.44% 38 ROCE % is -37.01% as of Mar. 2026. GuruFocus rates PRAX with a GF Score™ of 38/100 and a GF Value™ of $30.36 (Significantly Overvalued). The stock has 1 warning sign investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Praxis Precision Medicines's annualized ROCE % for the quarter that ended in Mar. 2026 was -37.01%.

Praxis Precision Medicines (NAS:PRAX) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Praxis Precision Medicines ROCE % Related Terms

Praxis Precision Medicines ROCE % Historical Data

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The historical data trend for Praxis Precision Medicines's ROCE % 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.

Praxis Precision Medicines ROCE % Chart

Praxis Precision Medicines Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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-61.77

-128.31

-165.21

-77.32

-49.29

Praxis Precision Medicines Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															-67.57	-72.15	-83.84	-63.55	-37.01

38GF Score

Praxis Precision Medicines Inc PRAX

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Praxis Precision Medicines ROCE % Calculation

Praxis Precision Medicines's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	-326.198	/	( ( (483.11 - 37.55)	+	(937.907 - 59.771) )	/ 2 )
	=	-326.198	/	( (445.56	+	878.136)	/ 2 )
	=	-326.198	/	661.848
	=	-49.29 %

Praxis Precision Medicines's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	-423.44	/	( ( (937.907 - 59.771)	+	(1460.202 - 50.241) )	/ 2 )
	=	-423.44	/	( ( 878.136	+	1409.961 )	/ 2 )
	=	-423.44	/	1144.0485
	=	-37.01 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -37.01% mean?

Praxis Precision Medicines (PRAX) has a ROCE % of -37.01% as of Mar. 2026.

Is Praxis Precision Medicines' ROCE % too high?

Praxis Precision Medicines' current ROCE % is -37.01%. 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' ROCE % compare to KRYS and CYTK?

Praxis Precision Medicines' ROCE % of -37.01% can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for a Biotechnology company?

A good ROCE % depends on the Biotechnology industry context. However, ROCE % 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. Praxis Precision Medicines's current ROCE % is -37.01%. 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 $30.36, compared to a current price of $322.67 — trading 962.8% above its estimated fair value. The current ROCE % is -37.01%. Praxis Precision Medicines' overall GF Score™ is 38/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Praxis Precision Medicines (PRAX), the current ROCE % is -37.01% 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 $322.67 is trading 962.8% above its estimated GF Value™ of $30.36. GuruFocus considers Praxis Precision Medicines to be Significantly Overvalued.

Key valuation signals for PRAX:

ROCE %: -37.01%
GF Value™: $30.36 vs. price of $322.67 (962.8% above fair value)
GF Score™: 38/100 with 1 warning sign

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 Business Description

Industry Healthcare Biotechnology

Comparable Companies KRYS CYTK NUVL ARWR BMRN TECH MDGL HALO IBRX CORT VRTX REGN XBRU:UCB XBRU:ARGX XKRX:207940 ALNY RVMD ASX:CSL ONC XKRX:068270

Address 99 High Street, 30th Floor, Boston, MA, USA, 02110

Website https://www.praxismedicines.com

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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$322.67

Price

$30.36

GF Value

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