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VerastemVSTM -0.36%15 Debt-to-Equity is 1.05 as of Mar. 2026, which is 144% above its 10-year median of 0.43. GuruFocus rates VSTM with a GF Score™ of 15/100. The stock has 7 warning signs investors should review. Among 966 Biotechnology companies, Verastem ranks worse than 87.89% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Verastem's Debt-to-Equity or its related term are showing as below:
VSTM'
s Debt-to-Equity Range Over the Past 10 Years
Min: -5.76 Med: 0.43 Max: 14.99
Current: 1.05
During the past 13 years, the highest Debt-to-Equity Ratio of Verastem was 14.99. The lowest was -5.76. And the median was 0.43.
VSTM's Debt-to-Equity is ranked worse than 87.89% of 966
companies
in the Biotechnology industry
Industry Median: 0.16
vs VSTM: 1.05
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Verastem Debt-to-Equity Related Terms
Verastem Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Verastem's Debt-to-Equity 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.
VSTM vs IRD, PALI, GALT: Debt-to-Equity Comparison
For the Biotechnology subindustry, Verastem's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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.
Verastem Debt-to-Equity vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Verastem's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Verastem's Debt-to-Equity 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.
Verastem (VSTM) has a Debt-to-Equity of 1.05 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Verastem and its competitors. This is 144% above median its historical median of 0.43. According to the industry distribution chart, Verastem ranks #849 out of 966 companies in the Biotechnology industry, placing it in the top 87.9%.
Is Verastem's Debt-to-Equity too high?
Verastem's current Debt-to-Equity of 1.05 is 144% above median its 10-year median of 0.43. The Biotechnology industry median Debt-to-Equity is 0.16. Verastem's value of 1.05 is 556.3% above this industry median. Based on the distribution chart, Verastem ranks #849 out of 966 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Verastem has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Verastem's Debt-to-Equity compare to IRD and PALI?
According to the Biotechnology industry distribution chart, Verastem ranks #849 out of 966 companies for Debt-to-Equity. This places Verastem in the lower half of its industry. The industry median Debt-to-Equity is 0.16. Verastem's value of 1.05 is 556.3% above this benchmark. While the company's 10-year median is 0.43 vs. the industry median of 0.16, Verastem has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Biotechnology company?
The median Debt-to-Equity among Biotechnology companies is 0.16, based on 966 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Verastem's current Debt-to-Equity of 1.05 is 556.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Verastem and its competitors. For the Biotechnology industry, the median Debt-to-Equity is 0.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Verastem's current Debt-to-Equity is 1.05, which is 144% above median its own 10-year median of 0.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Verastem stock overvalued right now?
Verastem (VSTM) has a current Debt-to-Equity of 1.05. The current Debt-to-Equity is 1.05, which is 144% above median its 10-year median of 0.43 and 556.3% above the Biotechnology industry median of 0.16. Verastem's overall GF Score™ is 15/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Verastem (VSTM), the current Debt-to-Equity is 1.05 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.
Verastem Inc is late-stage development biopharmaceutical company, committed to advancing new medicines for patients battling cancer. Its pipeline is focused on novel anticancer agents that inhibit critical signaling pathways in cancer that promote cancer cell survival and tumor growth, particularly RAF/MEK inhibition and FAK inhibition.
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