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VivoSim LabsFRA:4OR 33 Degree of Operating Leverage is -50.79 as of Mar. 2026. GuruFocus rates FRA:4OR with a GF Score™ of 33/100 and a GF Value™ of €21.31. The stock has 6 warning signs investors should review. Among 852 Biotechnology companies, VivoSim Labs ranks better than 97.18% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
VivoSim Labs's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was -50.79. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for VivoSim Labs's Degree of Operating Leverage or its related term are showing as below:
FRA:4OR's Degree of Operating Leverage is ranked better than 97.18% of 852
companies
in the Biotechnology industry
Industry Median: -0.04
vs FRA:4OR: -50.79
VivoSim Labs (FRA:4OR) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
VivoSim Labs Degree of Operating Leverage Related Terms
VivoSim Labs Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for VivoSim Labs's Degree of Operating Leverage 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.
FRA:4OR vs MTNB, HEPA, CLSDQ: Degree of Operating Leverage Comparison
For the Biotechnology subindustry, VivoSim Labs's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating 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.
VivoSim Labs Degree of Operating Leverage vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, VivoSim Labs's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where VivoSim Labs's Degree of Operating 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 EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating 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 Operating Leverage of -50.79 mean?
VivoSim Labs (FRA:4OR) has a Degree of Operating Leverage of -50.79 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for VivoSim Labs and its competitors. According to the industry distribution chart, VivoSim Labs ranks #24 out of 852 companies in the Biotechnology industry, placing it in the top 2.8%.
Is VivoSim Labs' Degree of Operating Leverage too high?
VivoSim Labs' current Degree of Operating Leverage is -50.79. Based on the distribution chart, VivoSim Labs ranks #24 out of 852 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, VivoSim Labs has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does VivoSim Labs' Degree of Operating Leverage compare to MTNB and HEPA?
According to the Biotechnology industry distribution chart, VivoSim Labs ranks #24 out of 852 companies for Degree of Operating Leverage. This places VivoSim Labs in the top 3% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Biotechnology company?
A good Degree of Operating Leverage depends on the Biotechnology industry context. However, Degree of Operating Leverage 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 Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for VivoSim Labs and its competitors. VivoSim Labs's current Degree of Operating Leverage is -50.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VivoSim Labs stock overvalued right now?
VivoSim Labs (FRA:4OR) has a current Degree of Operating Leverage of -50.79. The stock's GF Value™ is €21.31, compared to a current price of €3.49 — trading 83.6% below its estimated fair value. The current Degree of Operating Leverage is -50.79. VivoSim Labs' overall GF Score™ is 33/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For VivoSim Labs (FRA:4OR), the current Degree of Operating Leverage is -50.79 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 VivoSim Labs (FRA:4OR) Overvalued in 2026?
Based on GuruFocus' analysis, VivoSim Labs stock appears to be undervalued.
The current stock price of €3.49 is trading 83.6% below its estimated GF Value™ of €21.31.
Key valuation signals for FRA:4OR:
Degree of Operating Leverage: -50.79
GF Value™: €21.31 vs. price of €3.49 (83.6% below fair value)
No single metric tells the full story. See the FRA:4OR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VivoSim Labs Inc formerly, Organovo Holdings Inc is a biotechnology company focused on developing FXR314 in inflammatory bowel disease (IBD), including ulcerative colitis (UC), based on demonstration of clinical promise in three-dimensional (3D) human tissues as well as preclinical data. FXR is a mediator of gastrointestinal and liver diseases. It is now offering liver toxicology predictive screening and research services as well as working on predicting and studying the intestinal side effect profiles of drugs that are therapeutic candidates of pharmaceutical and biotech companies at all stages of drug development.
33GF Score
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