VSTM (Verastem) 10-Year Sharpe Ratio: 0.32 (As of Sep. 22, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

VSTM Verastem Inc VSTM
26 GF Score
Price $8.33
! 6 Warning Signs
View Full Analysis

What is Verastem 10-Year Sharpe Ratio?

Verastem VSTM +4.19% 26 10-Year Sharpe Ratio is 0.32 as of Sep. 22, 2026. GuruFocus rates VSTM with a GF Score™ of 26/100. The stock has 6 warning signs investors should review.

The 10-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past ten years. As of today (2026-09-22), Verastem's 10-Year Sharpe Ratio is 0.32.

Verastem  (NAS:VSTM) 10-Year Sharpe Ratio Explanation

The 10-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past ten years. It is calculated as the annualized result of the average ten-year monthly excess returns divided by its standard deviation in the ten-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

Verastem 10-Year Sharpe Ratio Related Terms

VSTM vs PRME, MDXG, SGMT: 10-Year Sharpe Ratio Comparison

For the Biotechnology subindustry, Verastem's 10-Year Sharpe Ratio, along with its competitors' market caps and 10-Year Sharpe 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.

Verastem 10-Year Sharpe Ratio vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Verastem's 10-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Verastem's 10-Year Sharpe Ratio falls into.


VSTM
26GF Score
Verastem Inc VSTM
10-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Verastem 10-Year Sharpe Ratio Calculation

The 10-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset in the last ten years. A stock / portfolio's 10-Year Sharpe Ratio can be calculated by dividing the difference between the ten-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the investment returns over the past ten years.

Frequently Asked Questions Learn more about 10-Year Sharpe Ratio →
What does a 10-Year Sharpe Ratio of 0.32 mean?
Verastem (VSTM) has a 10-Year Sharpe Ratio of 0.32 as of Sep. 22, 2026. 10-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past ten years. View historical data for Verastem and its competitors.
Is Verastem's 10-Year Sharpe Ratio too high?
Verastem's current 10-Year Sharpe Ratio is 0.32. Overall, Verastem has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does Verastem's 10-Year Sharpe Ratio compare to PRME and MDXG?
Verastem's 10-Year Sharpe Ratio of 0.32 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 10-Year Sharpe Ratio for a Biotechnology company?
A good 10-Year Sharpe Ratio depends on the Biotechnology industry context. However, 10-Year Sharpe Ratio 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 10-Year Sharpe Ratio mean?
A high 10-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 10-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past ten years. View historical data for Verastem and its competitors. Verastem's current 10-Year Sharpe Ratio is 0.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verastem stock overvalued right now?
Verastem (VSTM) has a current 10-Year Sharpe Ratio of 0.32. The current 10-Year Sharpe Ratio is 0.32. Verastem's overall GF Score™ is 26/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 10-Year Sharpe Ratio calculated?
10-Year Sharpe Ratio is calculated from a company's financial statements. For Verastem (VSTM), the current 10-Year Sharpe Ratio is 0.32 as of Sep. 22, 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.

Verastem Business Description

Other Exchanges 0LOV:UK2VS:Germany
Address 117 Kendrick Street, Suite 500, Needham, MA, USA, 02494
Verastem Inc is late-stage development biopharmaceutical company, committed to advancing new medicines for patients battling cancer. Its pipeline is focused on novel anticancer agents that inhibit critical signaling pathways in cancer that promote cancer cell survival and tumor growth, particularly RAF/MEK inhibition and FAK inhibition.
26GF Score

Get the complete analysis for VSTM

10-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$8.33
Price