Erasca (ERAS) AI Stock Analysis

• Market Cap: $4.23B
• Dividend Yield: N/A
• Average Volume (3M): 6.76M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: N/A
• EPS Growth: 45.66%
• Country: US
• Employees: 103
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -0.11
• Shares Outstanding: 309,586,800
• 10 Day Avg. Volume: 8,687,046
• 30 Day Avg. Volume: 6,757,213
• PEG Ratio: 0.22
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.45
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -5.06K
• Enterprise Value/Ebitda: -33.41
• 1Y Price Target: $10.88
• Price Target Upside: -19.82% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): -0.47
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $11.00 ▼(-18.94% Downside)
• Action: Reiterated Date: 01/30/26
• Date: Action: Reiterated 01/30/26

The score is primarily constrained by weak financial performance (no revenue, sizable losses, and continued cash burn). Offsetting factors include supportive corporate events that extend liquidity into 1H 2029 and strong technical momentum with price above major moving averages, though overbought indicators add near-term risk; valuation remains unattractive due to negative earnings and no dividend.

Positive Factors

Extended liquidity runway

An upsized public offering generated estimated net proceeds of ~$242.7M and management now expects liquidity into 1H 2029. This materially reduces near-term financing pressure, allowing completion of key clinical milestones and de-risking program execution over the next several years.

Modest leverage on balance sheet

Reported debt-to-equity of ~0.13 indicates low reliance on borrowings versus equity. For a development-stage biotech, modest leverage reduces financial distress risk, preserves flexibility to fund R&D through equity or partnerships, and limits fixed financing costs as trials progress.

Focused RAS/MAPK pipeline with clinical momentum

Erasca’s concentrated strategy on RAS/MAPK inhibitors and reported faster-than-expected ERAS-0015 dose escalation with partial responses at low doses strengthen its scientific differentiation. Multiple upcoming readouts across 2026–2027 provide durable value-creation pathways if clinical signals translate to later-stage success.

Negative Factors

No revenue and persistent losses

As a pre-commercial biotech, Erasca has no product revenue and sustained large operating losses, reflecting reliance on external funding until commercialization. Continued negative earnings erode equity and limit internal funding capacity, increasing execution risk if clinical readouts underperform.

High cash burn and negative operating cash flow

Substantial negative operating and free cash flow signal ongoing capital consumption to fund trials and development. Persistent cash burn necessitates repeated financing or partnerships, elevating dilution risk and potentially forcing prioritization or delay of programs if capital markets tighten.

Dilution risk from equity financings

The company’s recent upsized equity offering—priced below the prior close—underscores dependence on public markets for funding. Reliance on dilutive equity raises can compress existing shareholders' stakes and signal funding sensitivity, creating structural governance and capital-allocation implications over time.

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

Erasca makes money primarily through partnerships and collaborations with other pharmaceutical and biotechnology companies, focusing on the development and commercialization of its drug candidates. As a clinical-stage company, Erasca is not yet generating revenue from product sales, but it may receive milestone payments, research funding, and potential royalties from strategic alliances. The company also relies on equity financing and public offerings to fund its operations and R&D activities.

Erasca Financial Statement Overview

Summary

Financials reflect a development-stage biotech profile: zero revenue, large ongoing losses (TTM net income -$127.7M; TTM EBIT -$144.0M), and meaningful cash burn (TTM FCF -$98.4M). The balance sheet is a relative positive with modest leverage (debt-to-equity ~0.13), but equity has declined (from $423.5M to $347.9M), consistent with ongoing burn and financing/dilution risk.

Income Statement

ERAS continues to report zero revenue across the period provided, consistent with a pre-commercial biotechnology profile. Losses remain large and persistent: Net income was -$127.7M in TTM (Trailing-Twelve-Months) versus -$161.7M in 2024 (annual), indicating some improvement year-over-year, but profitability is still deeply negative with TTM EBIT at -$144.0M. The lack of revenue and continued heavy operating losses meaningfully weaken earnings quality and near-term visibility.

Balance Sheet

The balance sheet is a relative strength: leverage appears modest with debt-to-equity at ~0.13 in TTM (Trailing-Twelve-Months) (and ~0.12 in 2024 annual), suggesting manageable financial risk from borrowing. However, equity has declined from $423.5M (2024 annual) to $347.9M in TTM (Trailing-Twelve-Months), consistent with ongoing losses and dilution/burn risk. Returns on equity are negative in the most recent periods (TTM ROE about -31%), reflecting that capital is not yet generating profits.

Cash Flow

Cash generation is weak, with operating cash flow at -$98.3M and free cash flow at -$98.4M in TTM (Trailing-Twelve-Months), indicating continued cash burn to fund operations. Free cash flow also deteriorated sharply versus 2024 (annual) (free cash flow growth about -76.6% in TTM). A positive free cash flow to net income ratio near ~1.0 mainly reflects that losses are being mirrored by cash outflows rather than signaling healthy cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-832.00K	0.00	-3.73M	-2.64M	-829.00K	0.00
EBITDA	-125.90M	-153.28M	-121.31M	-240.16M	-121.94M	-36.97M
Net Income	-127.69M	-161.65M	-125.04M	-242.81M	-122.76M	-101.66M
Balance Sheet
Total Assets	420.40M	502.53M	395.30M	514.91M	501.42M	124.83M
Cash, Cash Equivalents and Short-Term Investments	288.40M	298.31M	312.35M	435.62M	414.48M	118.70M
Total Debt	48.29M	51.89M	55.86M	55.10M	18.79M	2.99M
Total Liabilities	72.52M	79.03M	78.61M	103.06M	44.89M	17.40M
Stockholders Equity	347.89M	423.50M	316.69M	411.85M	456.53M	107.42M
Cash Flow
Free Cash Flow	-98.43M	-131.98M	-102.99M	-119.81M	-98.48M	-71.38M
Operating Cash Flow	-98.31M	-109.42M	-101.22M	-103.26M	-79.60M	-32.69M
Investing Cash Flow	98.33M	-156.62M	-91.22M	-71.08M	-64.59M	-71.20M
Financing Cash Flow	1.32M	240.70M	1.29M	98.08M	439.40M	139.99M

Erasca Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ERAS, the sentiment is Positive. The current price of 13.57 is above the 20-day moving average (MA) of 12.21, above the 50-day MA of 8.67, and above the 200-day MA of 3.61, indicating a bullish trend. The MACD of 1.31 indicates Positive momentum. The RSI at 76.57 is Negative, neither overbought nor oversold. The STOCH value of 74.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ERAS.

Erasca Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ERAS	59 Neutral	$4.23B	-30.31	-32.00%	―	―	45.66%
OLMA	56 Neutral	$1.90B	-13.36	-59.22%	―	―	17.23%
BCAX	56 Neutral	$919.24M	―	-26.64%	―	―	-103.95%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ARVN	50 Neutral	$848.76M	-10.91	-16.23%	―	―	―
ARCT	46 Neutral	$233.85M	-3.34	-27.43%	―	-41.53%	-11.32%

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.