RYTM (Rhythm Pharmaceuticals) 1-Year Sharpe Ratio: 1.26 (As of Jul. 13, 2026)


RYTM Rhythm Pharmaceuticals Inc RYTM
54 GF Score
Price $108.40
GF Value $112.12
Valuation Fairly Valued
! 3 Warning Signs
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What is Rhythm Pharmaceuticals 1-Year Sharpe Ratio?

Rhythm Pharmaceuticals RYTM -6.13% 54 1-Year Sharpe Ratio is 1.26 as of Jul. 13, 2026. GuruFocus rates RYTM with a GF Score™ of 54/100 and a GF Value™ of $112.12 (Fairly Valued). The stock has 3 warning signs investors should review.

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 (2026-07-13), Rhythm Pharmaceuticals's 1-Year Sharpe Ratio is 1.26.

Rhythm Pharmaceuticals  (NAS:RYTM) 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.

Rhythm Pharmaceuticals 1-Year Sharpe Ratio Related Terms

RYTM vs MIRM, SYRE, PTGX: 1-Year Sharpe Ratio Comparison

For the Biotechnology subindustry, Rhythm Pharmaceuticals'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.

Rhythm Pharmaceuticals 1-Year Sharpe Ratio vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Rhythm Pharmaceuticals's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Rhythm Pharmaceuticals's 1-Year Sharpe Ratio falls into.


RYTM
54GF Score
Rhythm Pharmaceuticals Inc RYTM
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Rhythm Pharmaceuticals 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.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 1.26 mean?
Rhythm Pharmaceuticals (RYTM) has a 1-Year Sharpe Ratio of 1.26 as of Jul. 13, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Rhythm Pharmaceuticals and its competitors.
Is Rhythm Pharmaceuticals' 1-Year Sharpe Ratio too high?
Rhythm Pharmaceuticals' current 1-Year Sharpe Ratio is 1.26. Overall, Rhythm Pharmaceuticals has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhythm Pharmaceuticals' 1-Year Sharpe Ratio compare to MIRM and SYRE?
Rhythm Pharmaceuticals' 1-Year Sharpe Ratio of 1.26 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 Rhythm Pharmaceuticals and its competitors. Rhythm Pharmaceuticals's current 1-Year Sharpe Ratio is 1.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhythm Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Rhythm Pharmaceuticals (RYTM) is currently considered Fairly Valued. The stock's GF Value™ is $112.12, compared to a current price of $108.40 — trading 3.3% below its estimated fair value. The current 1-Year Sharpe Ratio is 1.26. Rhythm Pharmaceuticals' overall GF Score™ is 54/100 with 3 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 Rhythm Pharmaceuticals (RYTM), the current 1-Year Sharpe Ratio is 1.26 as of Jul. 13, 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 Rhythm Pharmaceuticals (RYTM) Overvalued in 2026?

Based on GuruFocus' analysis, Rhythm Pharmaceuticals stock appears to be undervalued. The current stock price of $108.40 is trading 3.3% below its estimated GF Value™ of $112.12. GuruFocus considers Rhythm Pharmaceuticals to be Fairly Valued.

Key valuation signals for RYTM:

  • 1-Year Sharpe Ratio: 1.26
  • GF Value™: $112.12 vs. price of $108.40 (3.3% below fair value)
  • GF Score™: 54/100 with 3 warning signs

No single metric tells the full story. See the RYTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Rhythm Pharmaceuticals Business Description

Other Exchanges 1RV:Germany
Address 222 Berkeley Street, 12th Floor, Boston, MA, USA, 02116
Rhythm Pharmaceuticals Inc is a commercial-stage biopharmaceutical company engaged in the development and commercialization of therapies for patients with rare neuroendocrine diseases. The company is focused on advancing its melanocortin-4 receptor (MC4R) agonists, including its main asset, IMCIVREE (setmelanotide), as a precision medicine designed to treat hyperphagia and severe obesity caused by rare MC4R pathway diseases. In addition, it has two early-stage investigational MC4R agonists in clinical development, RM-718 and bivamelagon, designed not to cause hyperpigmentation. The company is also focused on advancing potential candidates for congenital hyperinsulinism. It currently operates in two business segments: the United States, which generates maximum revenue, and International.
54GF Score

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

$108.40
Price
$112.12
GF Value