Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Prestige Consumer Healthcare's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 0.92. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Prestige Consumer Healthcare's Degree of Financial Leverage or its related term are showing as below:
PBH's Degree of Financial Leverage is ranked better than 54.04% of 953
companies
in the Drug Manufacturers industry
Industry Median: 0.96
vs PBH: 0.92
Prestige Consumer Healthcare (NYSE:PBH) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Prestige Consumer Healthcare Degree of Financial Leverage Related Terms
Prestige Consumer Healthcare Degree of Financial Leverage Historical Data
* 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.
Prestige Consumer Healthcare Degree of Financial Leverage Chart
PBH vs BCRX, SUPN, ANIP: Degree of Financial Leverage Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Prestige Consumer Healthcare's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage 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.
Prestige Consumer Healthcare Degree of Financial Leverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Prestige Consumer Healthcare's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Prestige Consumer Healthcare's Degree of Financial Leverage 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.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 0.92 mean?
Prestige Consumer Healthcare (PBH) has a Degree of Financial Leverage of 0.92 as of Mar. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Prestige Consumer Healthcare and its competitors. According to the industry distribution chart, Prestige Consumer Healthcare ranks #438 out of 953 companies in the Drug Manufacturers industry, placing it in the top 46%.
Is Prestige Consumer Healthcare's Degree of Financial Leverage too high?
Prestige Consumer Healthcare's current Degree of Financial Leverage is 0.92. The Drug Manufacturers industry median Degree of Financial Leverage is 0.96. Prestige Consumer Healthcare's value of 0.92 is 4.2% below this industry median. Based on the distribution chart, Prestige Consumer Healthcare ranks #438 out of 953 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Prestige Consumer Healthcare has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Prestige Consumer Healthcare's Degree of Financial Leverage compare to BCRX and SUPN?
According to the Drug Manufacturers industry distribution chart, Prestige Consumer Healthcare ranks #438 out of 953 companies for Degree of Financial Leverage. This puts Prestige Consumer Healthcare in the upper half of its industry. The industry median Degree of Financial Leverage is 0.96. Prestige Consumer Healthcare's value of 0.92 is 4.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Drug Manufacturers company?
The median Degree of Financial Leverage among Drug Manufacturers companies is 0.96, based on 953 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Prestige Consumer Healthcare's current Degree of Financial Leverage of 0.92 is 4.2% below 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 Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Prestige Consumer Healthcare and its competitors. For the Drug Manufacturers industry, the median Degree of Financial Leverage is 0.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Prestige Consumer Healthcare's current Degree of Financial Leverage is 0.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prestige Consumer Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Prestige Consumer Healthcare (PBH) is currently considered Significantly Undervalued. The stock's GF Value™ is $68.12, compared to a current price of $47.72 — trading 29.9% below its estimated fair value. The current Degree of Financial Leverage is 0.92 and 4.2% below the Drug Manufacturers industry median of 0.96. Prestige Consumer Healthcare's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Prestige Consumer Healthcare (PBH), the current Degree of Financial Leverage is 0.92 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 Prestige Consumer Healthcare (PBH) Overvalued in 2026?
Based on GuruFocus' analysis, Prestige Consumer Healthcare stock appears to be undervalued.
The current stock price of $47.72 is trading 29.9% below its estimated GF Value™ of $68.12.
GuruFocus considers Prestige Consumer Healthcare to be Significantly Undervalued.
Key valuation signals for PBH:
Degree of Financial Leverage: 0.92
GF Value™: $68.12 vs. price of $47.72 (29.9% below fair value)
Industry Position: 4.2% below the Drug Manufacturers median (#438 of 953)
No single metric tells the full story. See the PBH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prestige Consumer Healthcare is one of the largest pure-play over-the-counter healthcare providers. It has a diverse portfolio composed of leading brands in niche consumer health categories. Prestige's key brands include Clear Eyes (redness relief), Dramamine (motion sickness relief), Monistat (vaginal anti-fungal), and Summer's Eve (feminine hygiene), and many of its brands enjoy category leadership and recommendations from medical professionals. The firm mainly plays in North America where it generates roughly 85% of its total revenue, and the remaining sales come from Australia, New Zealand, and certain Asian markets.
68GF Score
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Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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