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EXEL, Exelixis Inc.

Biotechnology consumer brand Cyclical

Exelixis Inc. is an oncology company innovating next-generation medicines and regimens at the forefront of cancer care.

We have produced four marketed pharmaceutical products, two of which are formulations of our flagship molecule, cabozantinib, and we are steadily advancing and evolving our product pipeline portfolio, including our lead clinical asset, zanzalintinib, currently under review by the U.S.

The other two products resulting from our discovery efforts are: COTELLIC (cobimetinib), an inhibitor of MEK, approved as part of multiple combination regimens to treat specific forms of advanced melanoma and marketed under a collaboration with Genentech, Inc.

Latest annual: FY2026 10-K

EXEL · Exelixis Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2026

$2.3B

+7.0% YoY · 19% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $2.4B 5-yr avg $1.9B

Operating margin 39.4% 5-yr avg 21.5%

ROIC 41% 5-yr avg 19%

Owner-earnings margin 39% 5-yr avg 27%

Free cash flow margin 39% 5-yr avg 26%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 96% and operating margin about 20% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. The operating margin has swung widely — from −327% to 51% — on a steadier 96% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. The cash cycle has run negative through the cycle (a median of −8 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. Read this kind of business on the pipeline against the patent cliff, and pricing. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has run in the teens (median 18%, above 15% in 5 of 10 years). Owner earnings agree: roughly 34% of revenue reaches owners as cash, consistently. Returns like these are solid but short of clear franchise economics; whether they hold is what the 10-K settles, not the multiple.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2015–2026

realized figures from each filing · older years to the left

2015’15	2016’16	2017’17	2018’18	2020’20	2021’21	2022’22	2023’23	2025’25	2026’26	TTMTTMApr 2026
											Income statement
$37M	$191M	$452M	$854M	$968M	$1.4B	$1.6B	$1.8B	$2.2B	$2.3B	$2.4B	RevenueRevenue
90%	97%	97%	97%	97%	96%	96%	96%	96%	96%	96%	Gross marginGross mgn
154%	61%	35%	24%	24%	28%	29%	30%	23%	22%	22%	SG&A / revenueSG&A/rev
259%	50%	25%	21%	35%	48%	55%	57%	42%	36%	34%	R&D / revenueR&D/rev
($121M)	($28M)	$166M	$439M	$369M	$287M	$201M	$171M	$605M	$872M	$937M	Operating incomeOp. inc.
−326.6%	−14.7%	36.7%	51.4%	38.2%	20.0%	12.5%	9.3%	27.9%	37.6%	39.4%	Operating marginOp. mgn
($162M)	($70M)	$154M	$690M	$321M	$231M	$182M	$208M	$521M	$783M	$833M	Net incomeNet inc.
—	—	3%	—	19%	21%	22%	19%	24%	17%	17%	Effective tax rateTax rate
											Cash flow & returns
($142M)	$210M	$166M	$416M	$527M	$401M	$363M	$333M	$700M	$884M	$925M	Operating cash flowOp. cash
$1M	$1M	$1M	$5M	$8M	$14M	$21M	$26M	$29M	$29M	$29M	DepreciationDeprec.
($3M)	$257M	($14M)	($320M)	$141M	$36M	$52M	($7M)	$56M	($40M)	($54M)	Working capital & otherWC & other
$447K	$2M	$21M	$33M	$13M	$54M	$28M	$40M	$28M	$8M	$7M	CapexCapex
1.2%	0.9%	4.7%	3.9%	1.3%	3.8%	1.7%	2.2%	1.3%	0.4%	0.3%	Capex / revenueCapex/rev
($142M)	$209M	$164M	$411M	$519M	$387M	$342M	$308M	$672M	$876M	$918M	Owner earningsOwner earn.
−382.1%	109.4%	36.3%	48.1%	53.6%	27.0%	21.2%	16.8%	31.0%	37.7%	38.6%	Owner earnings marginOE mgn
($142M)	$209M	$144M	$382M	$514M	$347M	$335M	$293M	$672M	$876M	$918M	Free cash flowFCF
−382.1%	109.0%	31.9%	44.8%	53.1%	24.2%	20.8%	16.0%	31.0%	37.7%	38.6%	Free cash flow marginFCF mgn
—	—	—	—	—	$0	$0	$550M	$652M	$948M	—	BuybacksBuybacks
-54%	-18%	159%	45%	21%	14%	8%	7%	23%	43%	41%	ROICROIC
—	-79%	54%	54%	19%	10%	7%	9%	23%	36%	43%	Return on equityROE
—	−79%	54%	54%	19%	10%	7%	9%	23%	36%	43%	Retained to equityRetained/eq
											Balance sheet
$106M	$420M	$388M	$693M	$852M	$1.5B	$1.3B	$1.7B	$1.7B	$1.7B	$1.4B	Cash & investmentsCash+inv
$5M	$40M	$77M	$163M	$119M	$283M	$215M	$237M	$265M	$287M	$329M	ReceivablesReceiv.
$3M	$3M	$7M	$10M	$13M	$27M	$33M	$17M	$22M	$22M	$27M	InventoryInvent.
$6M	$7M	$10M	$11M	$12M	$24M	$33M	$34M	$38M	$30M	$24M	Accounts payablePayables
$1M	$37M	$74M	$162M	$120M	$286M	$215M	$221M	$250M	$279M	$331M	Operating working capitalOper. WC
$179M	$469M	$485M	$897M	$1.0B	$1.8B	$1.6B	$1.3B	$1.5B	$1.4B	$1.2B	Current assetsCur. assets
$52M	$269M	$115M	$105M	$143M	$338M	$324M	$394M	$404M	$406M	$371M	Current liabilitiesCur. liab.
3.4×	1.7×	4.2×	8.5×	7.1×	5.4×	5.0×	3.3×	3.6×	3.6×	3.3×	Current ratioCurr. ratio
$64M	$64M	$64M	$64M	$64M	$64M	$64M	$64M	$64M	$64M	$64M	GoodwillGoodwill
$332M	$596M	$655M	$1.4B	$1.9B	$2.6B	$3.1B	$2.9B	$2.9B	$2.8B	$2.6B	Total assetsAssets
$418M	$189M	$0	—	—	—	—	—	—	—	$189M	Total debtDebt
$312M	($231M)	($388M)	—	—	—	—	—	—	—	($1.2B)	Net debt / (cash)Net debt
-3.0×	-0.9×	19.1×	—	—	—	—	—	—	—	—	Interest coverageInt. cov.
($159M)	$89M	$285M	$1.3B	$1.7B	$2.2B	$2.5B	$2.3B	$2.2B	$2.2B	$1.9B	Shareholders’ equityEquity
59.1%	12.0%	5.3%	4.8%	5.8%	8.4%	6.7%	5.8%	4.3%	4.9%	4.9%	Stock comp / revenueSBC/rev
											Per share
209M	251M	312M	313M	315M	322M	325M	321M	296M	282M	267M	Shares out (diluted)Shares
$0.18	$0.76	$1.45	$2.73	$3.07	$4.45	$4.96	$5.69	$7.32	$8.23	$8.89	Revenue / shareRev/sh
$-0.77	$-0.28	$0.49	$2.21	$1.02	$0.72	$0.56	$0.65	$1.76	$2.78	$3.12	EPS (diluted)EPS
$-0.68	$0.84	$0.53	$1.31	$1.65	$1.20	$1.05	$0.96	$2.27	$3.11	$3.43	Owner earnings / shareOE/sh
$-0.68	$0.83	$0.46	$1.22	$1.63	$1.08	$1.03	$0.91	$2.27	$3.11	$3.43	Free cash flow / shareFCF/sh
$0.00	$0.01	$0.07	$0.11	$0.04	$0.17	$0.09	$0.13	$0.10	$0.03	$0.03	Cap. spending / shareCapex/sh
$-0.76	$0.36	$0.91	$4.12	$5.35	$6.86	$7.67	$7.04	$7.58	$7.67	$7.24	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	11-yr	5-yr
Revenue / share	+41.7%/yr	+13.1%/yr
Owner earnings / share	—	+20.9%/yr
EPS	—	+31.1%/yr
Capital spending / share	+27.1%/yr	−29.2%/yr
Book value / share	—	+2.3%/yr

The record, charted

FY2015–2026

Each measure over its full record; the current point and the worst year marked.

Share count

282Mpeak FY2022

ROIC

43%low FY2015

Gross margin

96%low FY2015

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$876Mowner earningsvs.$783Mnet incomelow FY2015

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2016FY2026

Owner-earnings bridge

FY2021–FY2026cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2026 the business turned $783M of profit into $876M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$783M

Owner earnings$876M · 38% of revenue

	FY2026	FY2025	FY2023	FY2022	FY2021
Reported net income	$783M	$521M	$208M	$182M	$231M
Depreciation & amortizationnon-cash charge added back	+$29M	+$29M	+$26M	+$21M	+$14M
Stock-based compensationreal costnon-cash, but a real cost	+$113M	+$94M	+$106M	+$108M	+$120M
Working capital & othertiming of cash in and out, other non-cash items	−$40M	+$56M	−$7M	+$52M	+$36M
Cash from operations	$884M	$700M	$333M	$363M	$401M
Maintenance capital expenditurethe spending needed just to hold position and volume	−$8M	−$28M	−$26M	−$21M	−$14M
Owner earnings	$876M	$672M	$308M	$342M	$387M
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	—	—	−$15M	−$7M	−$41M
Free cash flow	$876M	$672M	$293M	$335M	$347M
Owner-earnings marginowner earnings ÷ revenue	38%	31%	17%	21%	27%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $113M), owner earnings is nearer $763M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2026 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? —

No meaningful interest burden

Little or no interest expense reported

What this means
Little or no interest expense reported, the business isn't leaning on lenders to operate.
How heavy is the debt, net of cash? +$870M

Net cash

Cash $482M + ST investments $577M − debt $189M

What this means
Cash and short-term investments exceed every dollar of debt by $870M, on net the company owes nothing, and can act from strength when others can't. It also holds $604M in longer-dated marketable securities; counting those, it sits at net cash of $1.5B. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 11d

Tight

DSO 45 + DIO 95 − DPO 129 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 14%

Solid through the cycle

10-yr median, range -54%–159%; 39% latest = NOPAT $725M ÷ invested capital $1.9B

Industry peers: median 9%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 39% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 31%

High through the cycle

10-yr median margin, range -382%–109%; latest $876M = operating cash $884M − maintenance capex $8M

Industry peers: median 2%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 38% of revenue this year, a 31% median across 10 years. Treating stock comp as the real expense it is (less $113M of SBC) leaves $763M.
Are earnings backed by cash? 1.13×

Cash-backed

Cash from ops $884M ÷ net income $783M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 108%

Returned more than it generated

Dividends + buybacks $948M ÷ Owner Earnings $876M

What this means
The company returned more than it generated: against $876M of Owner Earnings, $948M (108%) went back to shareholders, $0 dividends, $948M buybacks — the excess came from the balance sheet or borrowing, not the year's operations. Net of $113M stock comp, the real buyback was about $835M. Sustained, that pattern draws down cash or adds debt; the net-debt line above shows where it stands.
Investing or harvesting? 0.29×

Harvesting

Capex $8M ÷ depreciation $29M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 3 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $2.3B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 3.56×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $189M vs $1.0B WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (10-yr record) · 2 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $2.00/share (latest year $3.11), the averaged base the calculator's gate runs on, and book value is $8.60/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2015–2026

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 8 of 10

What this means
Lost money in 2 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 1 of 3 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −102% → 25% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −102% early to 25% lately, median 20% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth +33%/yr

What this means
Owner earnings grew about 33% a year over the record.
Worst year 2015 · −326.6% op. margin

What this means
Operations went underwater in 2015, understand why before trusting the good years.
Share count +2.7%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Apr 3, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$1.2B

Cash & short-term investments$777M
Receivables$329M
Inventory$27M
Other current assets$76M

Current liabilities$371M

Debt due within a year$189M
Accounts payable$24M
Other current liabilities$158M

Current ratio3.26×all current assets ÷ what's due · Graham looked for 2×

Quick ratio3.19×stricter: inventory excluded

Cash ratio2.10×strictest: cash alone against what's due

Working capital$838Mthe cushion left after near-term bills

Debt due this year vs. cash$189M due · $777M cash covered by cash on hand, no refinancing forced · both figures from the Apr 3, 2026 balance sheet

Revenue, latest quarter vs. a year ago+10.0%the freshest read on whether the business is still growing

Current ratio, recent quarters4.3× → 3.3×

Deeper floors

Tangible book value$1.9Bequity stripped of goodwill & intangibles

Net current asset value$551MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$387M$197M of it operating leases

Deferred revenue$6Mcustomer cash collected before delivery; operating float

From the company's latest filing.

How the cash was used, 2015–2026

Over the record, the business generated $3.9B of operating cash; how management split it reads as a balanced allocator, splitting cash between the business, owners, and the balance sheet.

Reinvested$229M · 6%
Buybacks$2.1B · 56%
Retained (debt / cash)$1.5B · 38%

Returned to owners$2.1B
57% of the owner earnings the business produced over the span, $0 as dividends and $2.1B as buybacks.
Average price paid for buybacks$31.37
Across the years where the filing reports a share count, 30M shares were bought for $948M, about $31.37 each.
Net change in share count27.8%
The diluted count rose from 209M to 267M: issuance (stock pay, deals) outran any buybacks, so owners were diluted on net.
Dividend record—
No dividend line was reported in the filing data over the span; the record here neither confirms nor rules out a payout.
Return on what it retained76%
Of the earnings it kept rather than paid out ($708M over the span), annual owner earnings (first three years vs last three) grew $541M, so each retained $1 added about 0.76 of yearly owner earnings. Buffett's test, run on owner earnings instead of market value.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Dr. Morrissey	$7.5M	$15.3M	$387M
2022	Dr. Morrissey	$16.9M	$16.0M	$342M
2023	Dr. Morrissey	$16.4M	$31.7M	$308M
2025	Dr. Morrissey	$12.7M	$39.4M	$672M
2026	Dr. Morrissey	$33.2M	$55.1M	$876M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership2.6%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
CEO pay ratio81:1
What the chief earns for every dollar the median employee makes, per the 2026 proxy. A high ratio alone settles nothing; some businesses are genuinely top-heavy in scarce skill. A runaway figure is where Buffett starts asking whether the board is doing its job.
Stock-based compensation$113M
The slice of the business handed to employees in shares this year, 5% of revenue, equal to 13% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Exelixis Inc. is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2015–2026.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereIs it less profitable than it was?28.5% vs 64.6%
The owner-earnings margin averaged 64.6% early in the record and 28.5% across the last three years, and the latest year has not recovered. Ask the filing whether that is a structural drift or a cyclical trough — price, mix, cost, or a competitor — and whether it is permanent.
Look hereDid the share count rise anyway?27.8%
Diluted shares grew 27.8% over 2015–2026, even as the company spent $2.1B on buybacks. The repurchases were outrun by issuance — to staff, in a raise, or in a deal — and the filing says which; owners' slice still shrank. Read the buyback line beside this one, not on its own.

And these came back clean

Did debt outgrow the business?
Did reported profit become cash?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2026

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes, Stock compensation as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Biotechnology

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
NBIXNeurocrine	$2.9B	99%	11.2%	10%	21%
QDELQuidelOrtho	$2.7B	—	4.6%	24%	2%
EXELExelixis Inc.	$2.3B	96%	23.9%	18%	34%
MRNAModerna Inc.	$1.9B	55%	-126.4%	-35%	-77%
PTCTPTC Therapeutics Inc.	$1.7B	97%	-55.4%	-45%	-28%
HALOHalozyme	$1.4B	83%	37.1%	17%	39%
TECHBio-Techne	$1.2B	67%	21.4%	9%	22%
NVAXNovavax Inc.	$1.1B	65%	-117.4%	-128%	-50%
Group median	—	83%	7.9%	10%	12%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Exelixis Inc. has delivered.

Today’s price $

Through the cycle, Exelixis Inc. earns about $781M on its 33.7% median owner-earnings margin. This year’s 37.7% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($781M) Net of stock comp (−$116M)

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The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’26+16%/yr

Owner-earnings growth · ’15→’26+33%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’26)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $918M on 251M shares outstanding, per the 10-Q cover, as of 2026-04-27; net cash $1.2B. The if-converted diluted count is 267M, 6% above the shares outstanding: the dilution overhang (convertibles, options) a buyer inherits. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh EXEL against another business →

The owners of EXEL: the meeting and the votes →

Cite: Owner Scorecard, "Exelixis Inc. (EXEL), the owner's record," https://ownerscorecard.com/c/EXEL, data as of 2026-07-09.

Manual order: ← EXE its page in the Manual EXLS →

Industry order: ← EVAX the Biotechnology chapter FATE →