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 Tarsus Pharmaceuticals's Debt-to-EBITDA or its related term are showing as below:
TARS'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -2.15 Med: -0.23 Max: -0.03
Current: -2.15
During the past 8 years, the highest Debt-to-EBITDA Ratio of Tarsus Pharmaceuticals was -0.03. The lowest was -2.15. And the median was -0.23.
TARS's Debt-to-EBITDA is ranked worse than 100% of 291
companies
in the Biotechnology industry
Industry Median: 1.14
vs TARS: -2.15
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.
Tarsus Pharmaceuticals Debt-to-EBITDA Related Terms
Tarsus Pharmaceuticals Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Tarsus 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.
TARS vs KLRA, CLDX, TRVI: Debt-to-EBITDA Comparison
For the Biotechnology subindustry, Tarsus 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.
Tarsus Pharmaceuticals Debt-to-EBITDA vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Tarsus Pharmaceuticals's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Tarsus 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.
Tarsus Pharmaceuticals (TARS) has a Debt-to-EBITDA of -8.22 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 Tarsus Pharmaceuticals. According to the industry distribution chart, Tarsus Pharmaceuticals ranks #999999 out of 291 companies in the Biotechnology industry.
Is Tarsus Pharmaceuticals' Debt-to-EBITDA too high?
Tarsus Pharmaceuticals' current Debt-to-EBITDA is -8.22. Based on the distribution chart, Tarsus Pharmaceuticals ranks #999999 out of 291 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Tarsus Pharmaceuticals has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tarsus Pharmaceuticals' Debt-to-EBITDA compare to KLRA and CLDX?
According to the Biotechnology industry distribution chart, Tarsus Pharmaceuticals ranks #999999 out of 291 companies for Debt-to-EBITDA. This places Tarsus 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 Tarsus 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. Tarsus Pharmaceuticals's current Debt-to-EBITDA is -8.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tarsus Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Tarsus Pharmaceuticals (TARS) is currently considered Possible Value Trap. The stock's GF Value™ is $205.41, compared to a current price of $58.13 — trading 71.7% below its estimated fair value. The current Debt-to-EBITDA is -8.22. Tarsus Pharmaceuticals' overall GF Score™ is 47/100 with 2 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 Tarsus Pharmaceuticals (TARS), the current Debt-to-EBITDA is -8.22 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 Tarsus Pharmaceuticals (TARS) Overvalued in 2026?
Based on GuruFocus' analysis, Tarsus Pharmaceuticals stock appears to be undervalued.
The current stock price of $58.13 is trading 71.7% below its estimated GF Value™ of $205.41.
GuruFocus considers Tarsus Pharmaceuticals to be Possible Value Trap.
Key valuation signals for TARS:
Debt-to-EBITDA: -8.22
GF Value™: $205.41 vs. price of $58.13 (71.7% below fair value)
No single metric tells the full story. See the TARS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tarsus Pharmaceuticals Inc is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutics, starting with eye care. The company is focused on the development and commercialization of first-in-class therapeutic candidates to provide treatment for ophthalmic conditions. The company's candidate XDEMVY is a novel investigational eye drop to treat blepharitis caused by the infestation of Demodex mites, referred to as Demodex blepharitis. TP-04 for the potential treatment of ocular rosacea and TP-05 for potential Lyme disease prophylaxis and community malaria reduction.
47GF Score
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