VSTM

Verastem, Inc.

Fundamental data last updated:August 13, 2026

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company profile

SECTOR

Healthcare

industry

Biotechnology

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Verastem, Inc., a development-stage biopharmaceutical company, focusing on developing and commercializing drugs for the treatment of cancer. Its product in development includes VS-6766, a dual rapidly accelerated fibrosarcoma (RAF)/mitogen-activated protein kinase (MEK) clamp that blocks MEK kinase activity and the ability of RAF to phosphorylate MEK. The company also engages in developing RAMP 201, an adaptive two-part multicenter, parallel cohort, randomized open label trial to evaluate the efficacy and safety of VS-6766 and in combination with defactinib, an oral small molecule inhibitor of focal adhesion kinase (FAK) in patients with recurrent low grade serous ovarian cancer; and RAMP 202, which is in Phase 2 trial to evaluate the safety of VS-6766 in combination with defactinib in patients with KRAS and BRAF mutant non-small cell lung cancer following treatment with a platinum-based regimen and immune checkpoint inhibitor. Verastem, Inc. has license agreements with Chugai Pharmaceutical Co., Ltd. for the development, commercialization, and manufacture of products containing VS-6766; and Pfizer Inc. to research, develop, manufacture, and commercialize products containing Pfizer's inhibitors of FAK for therapeutic, diagnostic and prophylactic uses in humans. In addition, it has clinical collaboration agreement with Amgen, Inc. to evaluate the combination of VS-6766 with Amgen's KRAS-G12C inhibitor LUMAKRASTM which in Phase 1/2 trial entitled RAMP 203. The company was incorporated in 2010 and is headquartered in Needham, Massachusetts.

 


VALUATION

P/E

-2.17

Market Cap ($M USD)

$296.14M

Forward P/E

6.27

PEG

0.05

PRICE TO SALES

5.97

PRICE TO BOOK

5.13

EV / EBITDA

-1.03

5-Year Average P/E

Free Cash Flow Yield

-51.00%

DCF Value

$-4.38

Graham Number

N/A

Price to FCF

-1.96

EV to FCF

-1.43

Earnings Yield

-46.22%

FCF Yield

-51.00%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

-$1.97

Next Year EPS Growth Estimate

$0.68

Next Year Revenue Growth Estimate

$591.00M

Return on Equity (ROE)

-486.41%

FREE CASH FLOW

Operating Margin

-344.56%

Debt-to-Equity

1.34

Piotroski F-Score

3

Altman Z-Score

-8.28

Return on Invested Capital (ROIC)

-106.14%

Current Ratio

3.04

Quick Ratio

3.00

Net Debt to EBITDA

0.38

Interest Coverage

-169.33

Gross Profit margin

83.75%

FCF PER SHARE

$-1.54

REVENUE PER SHARE

$0.50

Gainseekers Quantitative Analysis

Summary

Verastem, Inc. is a paradox of potential and peril. Despite a Forward P/E of 6.30 suggesting future profitability, the current Price/Earnings ratio of -2.48 and a dismal Altman Z-score of -8.11 scream financial distress. The market’s valuation, trading below its DCF value, hints at skepticism about its turnaround. With an Earnings Yield of -40.35%, the stock appears risky, yet the market cap suggests some investor confidence. This is a classic case of high-risk, high-reward, where the financial health is precarious, but the growth narrative is compelling.

AI Exposure / Tech Reliance

Operating within the biotechnology sector, Verastem is well-positioned to leverage AI advancements in drug discovery and personalized medicine. The industry’s inherent reliance on cutting-edge technology aligns with AI-driven efficiencies. However, execution will be key in translating tech potential into tangible results.

The Bull Case

For the bold investor, Verastem offers a tantalizing prospect. The PEG ratio of 0.045 indicates significant undervaluation relative to growth, while a Piotroski F-Score of 3 suggests some financial stability. Despite negative ROIC and FCF Yield, the company's impressive sales growth projection could signal future pricing power. If management can harness this growth, the stock might reward those who buy in at these levels.

The Bear Case

Yet, the risks loom large. A Price/Book ratio of 5.88 and Price/Sales of 6.84 suggest the stock is priced for perfection, despite its operational struggles. The negative operating margin of -344.56% and a Return on Equity of -486.41% highlight severe profitability issues. With technical indicators showing it extended above its 50-Day SMA, caution is warranted for those wary of overvaluation.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$18.25

Institutional Ownership %

1-Year Beta

0.34

Insider Buying % (6 Mo)

Distance to 52-Week High

163.31%

Distance to 52-Week Low

6.38%

EARNINGS SURPRISE %

0.00%

50-DAY SMA

$5.33

200-DAY SMA

$7.39

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.