A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Rhythm Pharmaceuticals's Debt-to-EBITDA or its related term are showing as below:
RYTM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.04 Med: -0.02 Max: -0.01
Current: -0.02
During the past 11 years, the highest Debt-to-EBITDA Ratio of Rhythm Pharmaceuticals was -0.01. The lowest was -0.04. And the median was -0.02.
RYTM's Debt-to-EBITDA is ranked worse than 100% of 291
companies
in the Biotechnology industry
Industry Median: 1.14
vs RYTM: -0.02
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Rhythm Pharmaceuticals Debt-to-EBITDA Related Terms
Rhythm Pharmaceuticals Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Rhythm Pharmaceuticals's Debt-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RYTM vs MIRM, SYRE, PTGX: Debt-to-EBITDA Comparison
For the Biotechnology subindustry, Rhythm Pharmaceuticals's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rhythm Pharmaceuticals Debt-to-EBITDA vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Rhythm Pharmaceuticals's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Rhythm Pharmaceuticals's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Rhythm Pharmaceuticals (RYTM) has a Debt-to-EBITDA of -0.02 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Rhythm Pharmaceuticals. According to the industry distribution chart, Rhythm Pharmaceuticals ranks #999999 out of 291 companies in the Biotechnology industry.
Is Rhythm Pharmaceuticals' Debt-to-EBITDA too high?
Rhythm Pharmaceuticals' current Debt-to-EBITDA is -0.02. Based on the distribution chart, Rhythm Pharmaceuticals ranks #999999 out of 291 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Rhythm Pharmaceuticals has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhythm Pharmaceuticals' Debt-to-EBITDA compare to MIRM and SYRE?
According to the Biotechnology industry distribution chart, Rhythm Pharmaceuticals ranks #999999 out of 291 companies for Debt-to-EBITDA. This places Rhythm Pharmaceuticals in the lower half of its industry. The industry median Debt-to-EBITDA is 1.14. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Biotechnology company?
The median Debt-to-EBITDA among Biotechnology companies is 1.14, based on 291 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Rhythm Pharmaceuticals. For the Biotechnology industry, the median Debt-to-EBITDA is 1.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhythm Pharmaceuticals's current Debt-to-EBITDA is -0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhythm Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Rhythm Pharmaceuticals (RYTM) is currently considered Fairly Valued. The stock's GF Value™ is $111.75, compared to a current price of $115.48 — trading 3.3% above its estimated fair value. The current Debt-to-EBITDA is -0.02. Rhythm Pharmaceuticals' overall GF Score™ is 56/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Rhythm Pharmaceuticals (RYTM), the current Debt-to-EBITDA is -0.02 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rhythm Pharmaceuticals (RYTM) Overvalued in 2026?
Based on GuruFocus' analysis, Rhythm Pharmaceuticals stock appears to be overvalued.
The current stock price of $115.48 is trading 3.3% above its estimated GF Value™ of $111.75.
GuruFocus considers Rhythm Pharmaceuticals to be Fairly Valued.
Key valuation signals for RYTM:
Debt-to-EBITDA: -0.02
GF Value™: $111.75 vs. price of $115.48 (3.3% above fair value)
No single metric tells the full story. See the RYTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rhythm Pharmaceuticals Inc is a commercial-stage biopharmaceutical company engaged in the development and commercialization of therapies for patients with rare neuroendocrine diseases. The company is focused on advancing its melanocortin-4 receptor (MC4R) agonists, including its main asset, IMCIVREE (setmelanotide), as a precision medicine designed to treat hyperphagia and severe obesity caused by rare MC4R pathway diseases. In addition, it has two early-stage investigational MC4R agonists in clinical development, RM-718 and bivamelagon, designed not to cause hyperpigmentation. The company is also focused on advancing potential candidates for congenital hyperinsulinism. It currently operates in two business segments: the United States, which generates maximum revenue, and International.
56GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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