Erasca (ERAS) AI Stock Analysis

• Market Cap: $4.20B
• Dividend Yield: N/A
• Average Volume (3M): 6.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.95
• Revenue Growth: N/A
• EPS Growth: 45.66%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.10
• Shares Outstanding: 310,799,560
• 10 Day Avg. Volume: 8,687,046
• 30 Day Avg. Volume: 6,757,213
• PEG Ratio: 0.23
• Price to Book (P/B): 3.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -11.03
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -5.61K
• Enterprise Value/Ebitda: -32.97
• 1Y Price Target: $17.33
• Price Target Upside: 29.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): -0.44
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: $15.00 ▲(12.28% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is most constrained by weak financial performance (no revenue, sizable losses, and ongoing cash burn), partially offset by strong technical momentum and positive corporate developments that extend the cash runway and highlight clinical progress. Valuation remains challenged due to negative earnings and no dividend support.

Positive Factors

Extended cash runway

The upsized public offering and year-end cash position extend liquidity into the first half of 2029, giving management multi-year funding to advance planned Phase 1/2 programs and preclinical work. This reduces near-term financing pressure and supports execution of clinical milestones and strategic partnerships.

Robust patent protection

Issuance of a composition-of-matter patent for ERAS-4001 through at least 2043 creates a durable IP moat around a potential first-in-class pan-KRAS program. Long patent life supports exclusive commercialization windows, strengthens licensing leverage, and underpins long-term investment in development.

Worldwide rights for ERAS-0015

Securing global rights (including China/HK/Macau) for ERAS-0015 enables a unified development and regulatory strategy and simplifies commercialization planning. Global control increases strategic flexibility for partnerships, regulatory filings, and market access in key oncology markets over the long term.

Negative Factors

No product revenue

Erasca is pre-commercial and generated no product revenue while incurring substantial net losses. Structural lack of operating revenue means the company’s long-term sustainability depends on successful clinical outcomes or recurring external financing, increasing risk for dilution and constrained strategic options until commercialization.

High cash burn

Operating and free cash flow remain strongly negative, reflecting sustained R&D and trial spending. Although burn improved versus prior year, persistent cash outflows make Erasca reliant on capital markets or partnerships to fund pivotal development, introducing refinancing and execution risk beyond the current runway.

Clinical-stage binary risk

Key value drivers hinge on imminent Phase 1 readouts. Early partial responses are encouraging but come from dose‑escalation cohorts; outcomes remain binary and high risk. Trial failures, safety issues, or delayed readouts would materially set back development and necessitate further financing or strategic pivots.

Erasca Business Overview & Revenue Model

Company Description

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.

How the Company Makes Money

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Erasca Financial Statement Overview

Summary

Development-stage profile with no revenue in the periods provided and persistent large net losses (about -$125M in 2025). Cash burn remains heavy (free cash flow about -$96M in 2025), though improved versus 2024, while leverage is relatively modest (debt-to-equity around 0.15), partially offsetting financial risk.

Income Statement

The company reports no revenue across the annual periods provided, consistent with a pre-commercial biotech profile. Losses remain significant (net loss of about $125M in 2025 vs. about $162M in 2024), showing some improvement year over year but still indicating heavy ongoing R&D and operating spend. Profitability is structurally weak with persistent negative operating results and no demonstrated revenue trajectory in the dataset.

Balance Sheet

Leverage appears moderate, with debt-to-equity around 0.15 in 2025 (and generally low-to-moderate across the history), which reduces balance-sheet risk versus highly levered peers. However, equity has declined from 2024 to 2025 ($423M to $325M) alongside continued losses, and returns on equity remain deeply negative, highlighting ongoing capital consumption despite manageable debt levels.

Cash Flow

Cash burn remains heavy, with operating cash flow around -$95M and free cash flow around -$96M in 2025. There is improvement versus 2024 (free cash flow was about -$132M), but free cash flow growth is volatile and still negative in 2025, reflecting inconsistent burn dynamics. Cash flow quality is directionally “clean” in the sense that cash losses broadly track accounting losses, but the absolute level of ongoing outflows remains the key weakness.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00
Gross Profit	-3.11M	0.00	-3.73M	-2.64M	-829.00K
EBITDA	-128.30M	-153.28M	-121.31M	-240.16M	-121.94M
Net Income	-124.55M	-161.65M	-125.04M	-242.81M	-122.76M
Balance Sheet
Total Assets	396.15M	502.53M	395.30M	514.91M	501.42M
Cash, Cash Equivalents and Short-Term Investments	276.07M	298.31M	312.35M	435.62M	414.48M
Total Debt	47.14M	51.89M	55.86M	55.10M	18.79M
Total Liabilities	70.98M	79.03M	78.61M	103.06M	44.89M
Stockholders Equity	325.17M	423.50M	316.69M	411.85M	456.53M
Cash Flow
Free Cash Flow	-95.58M	-131.98M	-102.99M	-119.81M	-98.48M
Operating Cash Flow	-95.45M	-109.42M	-101.22M	-103.26M	-79.60M
Investing Cash Flow	100.42M	-156.62M	-91.22M	-71.08M	-64.59M
Financing Cash Flow	1.10M	240.70M	1.29M	98.08M	439.40M

Erasca Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 13.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ERAS, the sentiment is Neutral. The current price of 13.36 is below the 20-day moving average (MA) of 14.08, above the 50-day MA of 11.36, and above the 200-day MA of 4.42, indicating a neutral trend. The MACD of 0.83 indicates Positive momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 5.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ERAS.

Erasca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BCAX	56 Neutral	$1.17B	-5.93	-27.17%	―	―	-103.95%
ERAS	55 Neutral	$4.20B	-8.47	-32.00%	―	―	45.66%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ARCT	50 Neutral	$186.17M	-1.44	-27.43%	―	-41.53%	-11.32%
ARVN	48 Neutral	$696.54M	-9.53	-14.25%	―	―	―
OLMA	47 Neutral	$1.27B	―	-42.90%	―	―	17.23%

Erasca Corporate Events

Erasca extends cash runway after upsized public offering

On January 20, 2026, Erasca, Inc. reported that its preliminary, unaudited cash, cash equivalents and marketable securities totaled approximately $341.8 million as of December 31, 2025, and on January 23, 2026, the company closed an upsized public offering of 25,875,000 common shares, generating estimated net proceeds of $242.7 million. Based on these preliminary figures and management estimates, Erasca now expects to have sufficient liquidity to fund its operations into the first half of 2029, extending its financial runway and potentially strengthening its position to execute its development plans, though the figures remain subject to completion of year-end closing procedures and audit.

The most recent analyst rating on (ERAS) stock is a Buy with a $12.00 price target. To see the full list of analyst forecasts on Erasca stock, see the ERAS Stock Forecast page.

Erasca Announces Major Underwritten Public Equity Offering

On January 21, 2026, Erasca entered into an underwriting agreement with J.P. Morgan, Morgan Stanley, Jefferies and Evercore for an underwritten public offering of 22.5 million shares of common stock at $10.00 per share, with underwriters purchasing at $9.40 per share and holding a 30‑day option to buy up to an additional 3.375 million shares; the deal, expected to close on January 23, 2026, is anticipated to generate net proceeds of about $211 million, or $242.7 million if the option is fully exercised. The capital raise, announced via press releases on January 20 and 21, 2026 and conducted under an effective shelf registration, is intended to bolster Erasca’s funding for research and development of its oncology product candidates and broader corporate purposes, reinforcing its balance sheet to support ongoing clinical programs in RAS/MAPK pathway‑driven cancers and potentially strengthening its position in the competitive precision oncology landscape.

The most recent analyst rating on (ERAS) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Erasca stock, see the ERAS Stock Forecast page.

Erasca Highlights Accelerated Progress in RAS-Targeted Trials

On January 12, 2026, Erasca updated its corporate presentation and announced clinical progress across its RAS-targeting franchise, highlighting that dose escalation in the Phase 1 AURORAS-1 trial of ERAS-0015 has been advancing faster than anticipated, with ongoing confirmed and unconfirmed partial responses seen at low doses across multiple tumor types and RAS mutations, alongside favorable safety, tolerability, and linear pharmacokinetics observed as of a January 7, 2026 data cutoff. The company also reported that dose escalation for its pan-KRAS inhibitor ERAS-4001 in the Phase 1 BOREALIS-1 trial is proceeding as expected and laid out a detailed development timeline, with initial Phase 1 monotherapy data for ERAS-0015 expected in the first half of 2026, initial monotherapy data for ERAS-4001 in the second half of 2026, and subsequent expansion and combination cohort readouts slated into 2027, while shifting to use its website rather than regulatory filings as the primary channel for future corporate presentation updates, a move that underscores its growing clinical momentum and investor outreach efforts around its core RAS/MAPK-focused strategy.

The most recent analyst rating on (ERAS) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Erasca stock, see the ERAS Stock Forecast page.