IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 22.7GRADE F
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-39.0%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, Erasca, Inc. (ERAS) receives a "Hold" rating with a composite score of 38.4/100, ranked #1052 out of 4446 stocks. Key factor scores: Quality 23/100, Value 31/100, Momentum 80/100. This is quantitative analysis only — not investment advice.
Erasca, Inc. (ERAS) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Erasca, Inc. Do?
Erasca, Inc., a clinical-stage biopharmaceutical company, focuses on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers. The company's lead candidates include ERAS-007, an oral inhibitor of ERK1/2 for the treatment of non-small cell lung cancer, colorectal cancer, and acute myeloid leukemia; and ERAS-601, an oral SHP2 inhibitor for patients with advanced or metastatic solid tumors. It is also developing ERAS-801, a central nervous system-penetrant EGFR inhibitor for the treatment of patients with recurrent glioblastoma multiforme. The company was incorporated in 2018 and is headquartered in San Diego, California. Erasca, Inc. (ERAS) is classified as a mid-cap stock in the Healthcare sector, specifically within the Pharmaceutical Products industry. The company is led by CEO Jonathan E. Lim and employs approximately 120 people. With a market capitalization of $5.2B, ERAS is one of the notable companies in the Healthcare sector.
Erasca, Inc. (ERAS) Stock Rating — Hold (April 2026)
As of April 2026, Erasca, Inc. receives a Hold rating with a composite score of 38.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.ERAS ranks #1,052 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, Erasca, Inc. ranks #74 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
ERAS Stock Price and 52-Week Range
Erasca, Inc. (ERAS) currently trades at $17.13. The stock lost $0.23 (1.3%) in the most recent trading session. The 52-week high for ERAS is $16.41, which means the stock is currently trading 4.4% from its annual peak. The 52-week low is $1.01, putting the stock 1596.0% above its annual trough. Recent trading volume was 3.1M shares, reflecting moderate market activity.
Is ERAS Overvalued or Undervalued? — Valuation Analysis
Erasca, Inc. (ERAS) carries a value factor score of 31/100 in the Blank Capital model, signaling premium valuation that prices in significant future growth. The price-to-book ratio stands at 16.31x, versus the sector average of 2.75x.
At current multiples, Erasca, Inc. trades at a premium to most Healthcare peers. This elevated valuation may be justified if the company can sustain above-average growth rates and profitability, but it also creates downside risk if earnings disappoint expectations.
Erasca, Inc. Profitability — ROE, Margins, and Quality Score
Erasca, Inc. (ERAS) earns a quality factor score of 23/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is -39.0%, compared to the Healthcare sector average of -43.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -32.0% versus the sector average of -33.1%.
Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
ERAS Debt, Balance Sheet, and Financial Health
Erasca, Inc. has a debt-to-equity ratio of 22.0%, compared to the Healthcare sector average of 32.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 10.04x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $70M.
ERAS has a beta of 0.99, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Erasca, Inc. is 34/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
Erasca, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Erasca, Inc. reported revenue of $0 and earnings per share (EPS) of $-0.44. Net income for the quarter was $-127M. Operating income came in at $-146M.
In FY 2025, Erasca, Inc. reported revenue of $0 and earnings per share (EPS) of $-0.44. Net income for the quarter was $-125M. Operating income came in at $-141M.
In Q3 2025, Erasca, Inc. reported revenue of $0 and earnings per share (EPS) of $-0.11. Net income for the quarter was $-31M. Operating income came in at $-35M.
In Q2 2025, Erasca, Inc. reported revenue of $0 and earnings per share (EPS) of $-0.12. Net income for the quarter was $-34M. Operating income came in at $-38M.
Over the past 8 quarters, Erasca, Inc. has experienced revenue contraction from $0 to $0. Investors analyzing ERAS stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
ERAS Dividend Yield and Income Analysis
Erasca, Inc. (ERAS) does not currently pay a dividend. This is common among smaller companies in the Pharmaceutical Products industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
ERAS Momentum and Technical Analysis Profile
Erasca, Inc. (ERAS) has a momentum factor score of 80/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 10/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
ERAS vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing ERAS against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full ERAS vs S&P 500 (SPY) comparison to assess how Erasca, Inc. stacks up against the broader market across all factor dimensions.
ERAS Next Earnings Date
No upcoming earnings date has been announced for Erasca, Inc. (ERAS) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy ERAS? — Investment Thesis Summary
Erasca, Inc. presents a balanced picture with arguments on both sides. The quality score of 23/100 flags below-average profitability. The value score of 31/100 indicates premium valuation. Price momentum is positive at 80/100, suggesting the trend favors buyers. High volatility (stability score 34/100) increases portfolio risk.
In summary, Erasca, Inc. (ERAS) earns a Hold rating with a composite score of 38.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on ERAS stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
Erasca, Inc. (ERAS) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Erasca (ERAS), driven by the inherent uncertainties associated with clinical-stage biopharmaceutical companies and the current valuation that appears to price in significant future success. While Erasca's focus on RAS/MAPK pathway-driven cancers presents a substantial market opportunity, the company's lack of revenue and reliance on successful clinical trials introduce considerable risk. The high Momentum score suggests market optimism, but the low Quality, Value, and Investment scores temper our enthusiasm.
The critical takeaway is that Erasca's future hinges on the successful development and commercialization of its drug candidates. Investors should closely monitor clinical trial results, regulatory approvals, and the company's cash runway. While the potential upside is considerable if Erasca's therapies prove effective, the downside risk is equally significant given the high attrition rate in drug development and the current market capitalization.
Business Strategy & Overview
Erasca operates as a clinical-stage biopharmaceutical company, concentrating its efforts on discovering, developing, and commercializing therapies targeting RAS/MAPK pathway-driven cancers. This pathway is implicated in a significant proportion of human cancers, presenting a large addressable market. The company's strategy revolves around identifying and developing novel small molecule inhibitors that can selectively target key nodes within this pathway. Their pipeline includes ERAS-007 (ERK1/2 inhibitor), ERAS-601 (SHP2 inhibitor), and ERAS-801 (CNS-penetrant EGFR inhibitor), each targeting different aspects of the RAS/MAPK pathway or specific cancer types.
The company's business model is predicated on advancing these drug candidates through preclinical and clinical development, ultimately seeking regulatory approval and commercialization, either independently or through partnerships with larger pharmaceutical companies. Given the substantial capital requirements of drug development, Erasca relies heavily on equity financing to fund its operations. The absence of revenue underscores the company's pre-commercial stage and the inherent risks associated with its business model.
Erasca's strategic positioning within the oncology space is focused on precision medicine, aiming to develop therapies that are tailored to specific genetic mutations or biomarkers. This approach aligns with the broader trend in oncology towards personalized treatment strategies. The company's success depends on its ability to identify and validate promising drug targets, design and synthesize effective drug candidates, and conduct rigorous clinical trials to demonstrate safety and efficacy.
The competitive landscape in the oncology market is intensely competitive, with numerous pharmaceutical and biotechnology companies vying to develop innovative cancer therapies. Erasca faces competition from established players with significant resources and expertise, as well as from other emerging companies focused on similar targets or pathways. To differentiate itself, Erasca emphasizes its scientific expertise, its focus on the RAS/MAPK pathway, and its commitment to developing novel and differentiated therapies.
Execution Benchmarks audit
Return on Equity
Equity capital efficiency
-39.0%
Sector: -43.5%
-11% VS SCTR
Economic Moat Analysis
Erasca's economic moat is currently assessed as None. As a clinical-stage biopharmaceutical company, it lacks the established revenue streams, brand recognition, or proprietary manufacturing processes that typically confer a sustainable competitive advantage. The company's value is primarily derived from its intellectual property, specifically the patents covering its drug candidates and their methods of use. However, patents provide only a limited period of exclusivity, and their validity and enforceability can be challenged.
The biopharmaceutical industry is characterized by high levels of innovation and competition, making it difficult for any single company to maintain a dominant position for an extended period. New therapies and technologies are constantly emerging, potentially rendering existing treatments obsolete. Furthermore, the regulatory approval process is lengthy and uncertain, and even successful drugs can face competition from generics or biosimilars after their patent protection expires.
While Erasca's focus on the RAS/MAPK pathway could potentially create a niche market opportunity, it does not constitute a significant economic moat. Other companies are also pursuing therapies targeting this pathway, and the success of any one company depends on the relative efficacy and safety of its drug candidates. The absence of network effects, switching costs, or cost advantages further weakens Erasca's competitive position.
The potential for Erasca to develop a narrow moat in the future depends on its ability to successfully commercialize its drug candidates and establish a strong market presence. If Erasca can demonstrate superior efficacy or safety compared to existing therapies, it may be able to capture a significant market share and generate sustainable revenue streams. However, this is a highly uncertain outcome, and the company faces significant challenges in achieving this goal.
Financial Health & Profitability
Erasca's financial health is characterized by a strong cash position but a lack of revenue generation, typical of a clinical-stage biopharmaceutical company. The company's Total Cash of $70.23 million provides a runway to fund ongoing research and development activities. The absence of Total Debt is a positive sign, indicating that the company is not burdened by significant financial obligations. The Current Ratio of 10.04 suggests a strong ability to meet short-term liabilities.
However, the company's lack of revenue and consistent net losses raise concerns about its long-term financial sustainability. The Net Income of $-124.55 million for the trailing twelve months (TTM) and the negative EBITDA of $-140.91 million highlight the company's reliance on external funding. The Free Cash Flow of $-22.95 million further underscores the company's cash burn rate.
Examining the Quarterly Financial History reveals a consistent pattern of net losses over the past several years. While the quarterly losses have fluctuated, there is no indication of a trend towards profitability. The absence of Gross Margin and Operating Margin data reflects the company's lack of revenue generation. The negative ROE of -39.0% is consistent with the company's net losses.
Compared to the healthcare sector, Erasca's financial metrics are significantly different due to its pre-commercial stage. The company's P/E and EV/EBITDA ratios are not applicable (N/A) due to the lack of earnings and EBITDA. The sector's average P/E of 24.3x and EV/EBITDA of 6.4x provide a benchmark for established companies with revenue and earnings. The sector's average ROE of -42.5% is comparable to Erasca's, reflecting the prevalence of unprofitable companies in the biotechnology industry. The sector's average Revenue Growth of 10.7% is not applicable to Erasca, which has no revenue. The company's D/E of 22.00 is lower than the sector average of 30.00, indicating a lower level of leverage.
Valuation Assessment
Erasca's valuation is challenging due to its lack of revenue and earnings. Traditional valuation metrics such as P/E and EV/EBITDA are not applicable. The company's Market Cap of $4.54 billion reflects investor expectations for future success, based on the potential of its drug candidates. However, this valuation is highly speculative and depends on the successful completion of clinical trials and regulatory approval.
Given the absence of traditional valuation metrics, investors must rely on alternative methods to assess Erasca's value. These methods include discounted cash flow (DCF) analysis, probability-adjusted net present value (rNPV) analysis, and comparable company analysis. However, these methods are highly sensitive to assumptions about future revenue, expenses, and probabilities of success.
The company's Momentum score of 80/100 suggests that the market is optimistic about its prospects. However, the low Value score of 29/100 indicates that the stock may be overvalued relative to its fundamentals. The Investment score of 25/100 reflects the uncertainty surrounding the company's future growth potential and capital allocation decisions.
Compared to other clinical-stage biopharmaceutical companies, Erasca's valuation appears to be relatively high. Many companies with similar pipelines and development stages have lower market capitalizations. This suggests that Erasca's valuation may be pricing in a higher probability of success or a greater potential market opportunity. However, this also increases the downside risk if the company's clinical trials fail or its drug candidates do not achieve commercial success.
Risk & Uncertainty
Erasca faces significant risks and uncertainties inherent to the biopharmaceutical industry. The most prominent risk is the uncertainty of clinical trial outcomes. The company's drug candidates may fail to demonstrate sufficient efficacy or safety in clinical trials, leading to delays, setbacks, or even termination of development programs. Clinical trial failures are common in the biopharmaceutical industry, and they can have a significant negative impact on a company's valuation.
Regulatory risk is another significant concern. The company's drug candidates must be approved by regulatory agencies such as the FDA before they can be commercialized. The regulatory approval process is lengthy and complex, and there is no guarantee that Erasca's drug candidates will be approved. Regulatory agencies may require additional clinical trials or impose restrictions on the use of approved drugs.
Competition is also a major risk factor. The oncology market is highly competitive, with numerous companies developing therapies for similar indications. Erasca faces competition from established pharmaceutical companies with significant resources and expertise, as well as from other emerging biotechnology companies. The company's drug candidates may face competition from existing therapies or from new therapies that are developed by competitors.
Financial risk is also a concern. Erasca relies on external funding to finance its operations. The company may need to raise additional capital in the future through equity or debt financing. However, there is no guarantee that the company will be able to obtain financing on favorable terms. A failure to secure adequate funding could jeopardize the company's ability to continue its research and development activities.
Bulls Say / Bears Say
The Bull Case
BULL VIEWErasca's focus on the RAS/MAPK pathway, a key driver in many cancers, positions them to address a large unmet medical need with potentially groundbreaking therapies.
BULL VIEWThe strong cash position and lack of debt provide Erasca with financial flexibility to advance its pipeline and pursue strategic partnerships.
BULL VIEWPositive early-stage clinical data for ERAS-007 and ERAS-601 could drive significant upside in the stock price.
The Bear Case
BEAR VIEWAs a clinical-stage company with no revenue, Erasca's valuation is entirely dependent on the success of its pipeline, making it a high-risk investment.
BEAR VIEWThe high cash burn rate and reliance on future equity offerings could dilute existing shareholders and limit long-term returns.
BEAR VIEWCompetition in the oncology space is intense, and Erasca faces significant challenges in differentiating its therapies and achieving commercial success.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score ERAS and 4,400+ other equities.
Erasca, Inc. exhibits a 108% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-32.0%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
—
Sector: 71.5%
Operating Margin
Core business profitability
—
Sector: -66.1%
Net Margin
Bottom-line profitability
—
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
