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The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-08-05), Praxis Precision Medicines's 1-Year Sharpe Ratio is 1.18.
Praxis Precision Medicines (NAS:PRAX) 1-Year Sharpe Ratio Explanation
The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. 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.
Praxis Precision Medicines 1-Year Sharpe Ratio Related Terms
PRAX vs KYMR, SYRE, CRNX: 1-Year Sharpe Ratio Comparison
For the Biotechnology subindustry, Praxis Precision Medicines's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-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.
Praxis Precision Medicines 1-Year Sharpe Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Praxis Precision Medicines's 1-Year Sharpe Ratio distribution charts can be found below:
* The bar in red indicates where Praxis Precision Medicines's 1-Year Sharpe Ratio falls into.
Praxis Precision Medicines 1-Year Sharpe Ratio Calculation
The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.
Praxis Precision Medicines (PRAX) has a 1-Year Sharpe Ratio of 1.18 as of Aug. 05, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Praxis Precision Medicines and its competitors.
Is Praxis Precision Medicines' 1-Year Sharpe Ratio too high?
Praxis Precision Medicines' current 1-Year Sharpe Ratio is 1.18. 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' 1-Year Sharpe Ratio compare to KYMR and SYRE?
Praxis Precision Medicines' 1-Year Sharpe Ratio of 1.18 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 1-Year Sharpe Ratio for a Biotechnology company?
A good 1-Year Sharpe Ratio depends on the Biotechnology industry context. However, 1-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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Praxis Precision Medicines and its competitors. Praxis Precision Medicines's current 1-Year Sharpe Ratio is 1.18. 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 $23.85, compared to a current price of $318.84 — trading 1236.8% above its estimated fair value. The current 1-Year Sharpe Ratio is 1.18. Praxis Precision Medicines' overall GF Score™ is 38/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Praxis Precision Medicines (PRAX), the current 1-Year Sharpe Ratio is 1.18 as of Aug. 05, 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 $318.84 is trading 1236.8% above its estimated GF Value™ of $23.85.
GuruFocus considers Praxis Precision Medicines to be Significantly Overvalued.
Key valuation signals for PRAX:
1-Year Sharpe Ratio: 1.18
GF Value™: $23.85 vs. price of $318.84 (1236.8% 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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