Verastem (VSTM) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Verastem

NasdaqCM•Healthcare•Biotechnology

$8.20+0.22(0.03%)Market closed

Market Cap

$736.85M

P/S

8.4x

P/B

14.7x

Verastem, Inc., a development-stage biopharmaceutical company, focuses on developing and commercializing drugs for the treatment of cancer in the United States. Its product candidates are Avutometinib, which is an orally administered, small molecule dual RAF/MEK inhibitor developed to block MEK kinase activity and the compensatory reactivation of MEK by upstream RAF, thereby targeting the RAS/MAPK signaling pathway that is commonly activated in various cancers; and Defactinib, an oral small molecule inhibitor of FAK and proline-rich tyrosine kinase for various solid tumors. The company is involved in clinical studies, including RAMP 301, a randomized global confirmatory trial to evaluate the combination of Avutometinib and Defactinib for the treatment of patients with recurrent low-grade serous ovarian cancer; RAMP 201, an adaptive two-part multicenter, parallel cohort, randomized open label trial to evaluate the efficacy and safety of Avutometinib and in combination with Defactinib; and FRAME, an investigation of Avutometinib and Defactinib in patients with KRAS mutant cancers and subsequent analyses; and RAMP 205. It has license agreements with Chugai Pharmaceutical Co., Ltd. for the development, commercialization, and manufacture of products containing Avutometinib; 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 a clinical collaboration agreement with Amgen, Inc. to evaluate the combination of Avutometinib with Amgen's KRAS-G12C inhibitor LUMAKRAS, which in Phase 1/2 trial entitled RAMP 203; VS-7375, and VS-7375-101 is a discovery and development collaboration with GenFleet Therapeutics to advance new programs targeting RAS pathway-driven cancers; and AVMAPKI, FAKZYNJA, CO-PACK, is an avutometinib capsules, and defactinib tablets. The company was incorporated in 2010 and is headquartered in Needham, Massachusetts.

How this company scores

WeakMetricSide Score: 42/100

Grade capped at D — Interest coverage below 1× (-111.0x) — earnings cannot cover interest. Strongest: Growth (16/25); weakest: Cash & Earnings Quality (6/25).

Profitability7/25

Growth16/25

Balance Sheet & Red Flags13/25

Cash & Earnings Quality6/25

Strengths

Growing revenueImproving leverageConsistent growthNet cash position

Grade capped at D

Interest coverage below 1× (-111.0x) — earnings cannot cover interest.

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/S · 8.4x5y range 8.0x – 3257.9x

Currently below its 15-quarter median.

P/B · 14.7x5y range 1.3x – 68.6x

Currently near its 17-quarter median.

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

High Risk

Margin Pressure

Red Flag

The company posted negative operating margins in recent quarters — core operations are unprofitable.

Earnings Quality

Red Flag

Free cash flow has been negative in 8 of the last 8 quarters — earnings are not translating to cash.

Price & Volume

Market Cap $736.85M

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $87.53M
Q. Revenue: $40.08M
TTM EBITDA: $-158.23M
TTM Op. Income: $-159.80M
Q. Op. Income: $-32.71M
TTM Net Income: $-202.70M
Q. Net Income: $-34.67M
EPS: $-0.35
Shares Out.: $100.12M

$87.53M in TTM revenue grew 3995.7% YoY, reaching $40.08M last quarter. TTM EBITDA of $-158.23M and TTM operating income of $-159.80M show growth is flowing through to the bottom line. However, net income is negative at $202.70M — growth is not yet reaching the bottom line. Across the last 8 quarters, TTM revenue has risen for 4 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

Gross Margin: 89.9%
EBITDA Margin: -80.9%
Op. Margin: -81.6%
Net Margin: -86.5%

Op. margin of -81.6% is up 1966.3% YoY — cost efficiency is improving. Net margin at -86.5% and gross margin of 89.9% show how much of each revenue dollar survives to profit. Over the past year, operating margin is up 96% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: N/A
P/S Ratio: 8.4x
P/B Ratio: 14.7x

P/S of 8.4x and P/B of 14.7x.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $206.51M
Cash: $136.35M
Long-Term Debt: $73.77M
Book Value: $49.99M
D/E Ratio: 1.5
Debt/EBITDA: N/A

With $206.51M in assets and $73.77M in long-term debt, D/E is 1.5and book value is $49.99M — moderate leverage. Over the past year, debt/equity is down 47% — a weakening trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $-43.91M
TTM Free Cash Flow: $-162.19M
FCF Margin: -185.3%
FCF / Net Income: 0.8

TTM FCF of $-162.19M on $-43.91M in operating cash flow. The FCF / Net Income ratio of 0.8x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has fallen for 6 consecutive quarters — a weakening trend.