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The 3-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past three years. As of today (2026-08-26), Foghorn Therapeutics's 3-Year Sharpe Ratio is 0.17.
Foghorn Therapeutics (NAS:FHTX) 3-Year Sharpe Ratio Explanation
The 3-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past three years. It is calculated as the annualized result of the average three-year monthly excess returns divided by its standard deviation in the three-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.
Foghorn Therapeutics 3-Year Sharpe Ratio Related Terms
FHTX vs NWBO, FATE, IMRX: 3-Year Sharpe Ratio Comparison
For the Biotechnology subindustry, Foghorn Therapeutics's 3-Year Sharpe Ratio, along with its competitors' market caps and 3-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.
Foghorn Therapeutics 3-Year Sharpe Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Foghorn Therapeutics's 3-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Foghorn Therapeutics's 3-Year Sharpe Ratio falls into.
Foghorn Therapeutics 3-Year Sharpe Ratio Calculation
The 3-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset in the last three years. A stock / portfolio's 3-Year Sharpe Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the investment returns over the past three years.
Foghorn Therapeutics (FHTX) has a 3-Year Sharpe Ratio of 0.17 as of Aug. 26, 2026. 3-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past three years. View historical data for Foghorn Therapeutics and its competitors.
Is Foghorn Therapeutics' 3-Year Sharpe Ratio too high?
Foghorn Therapeutics' current 3-Year Sharpe Ratio is 0.17. Overall, Foghorn Therapeutics has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Foghorn Therapeutics' 3-Year Sharpe Ratio compare to NWBO and FATE?
Foghorn Therapeutics' 3-Year Sharpe Ratio of 0.17 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 3-Year Sharpe Ratio for a Biotechnology company?
A good 3-Year Sharpe Ratio depends on the Biotechnology industry context. However, 3-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 3-Year Sharpe Ratio mean?
A high 3-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past three years. View historical data for Foghorn Therapeutics and its competitors. Foghorn Therapeutics's current 3-Year Sharpe Ratio is 0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Foghorn Therapeutics stock overvalued right now?
Based on GuruFocus' analysis, Foghorn Therapeutics (FHTX) is currently considered Modestly Overvalued. The stock's GF Value™ is $5.32, compared to a current price of $6.69 — trading 25.8% above its estimated fair value. The current 3-Year Sharpe Ratio is 0.17. Foghorn Therapeutics' overall GF Score™ is 67/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Sharpe Ratio calculated?
3-Year Sharpe Ratio is calculated from a company's financial statements. For Foghorn Therapeutics (FHTX), the current 3-Year Sharpe Ratio is 0.17 as of Aug. 26, 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 Foghorn Therapeutics (FHTX) Overvalued in 2026?
Based on GuruFocus' analysis, Foghorn Therapeutics stock appears to be overvalued.
The current stock price of $6.69 is trading 25.8% above its estimated GF Value™ of $5.32.
GuruFocus considers Foghorn Therapeutics to be Modestly Overvalued.
Key valuation signals for FHTX:
3-Year Sharpe Ratio: 0.17
GF Value™: $5.32 vs. price of $6.69 (25.8% above fair value)
No single metric tells the full story. See the FHTX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Foghorn Therapeutics Inc is a clinical stage, precision therapeutics biotechnology company focused on pioneering a new class of medicines that treat serious diseases by correcting abnormal gene expression through selectively targeting the chromatin regulatory system. Its proprietary platform is designed to provide an integrated, mechanistic understanding of interactions within the chromatin regulatory system, supporting the identification and validation of potential therapeutic targets. The company's flagship program is FHD-909.
67GF Score
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