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Puma BiotechnologyPBYI -0.07%53 Degree of Operating Leverage is 8.73 as of Mar. 2026. GuruFocus rates PBYI with a GF Score™ of 53/100 and a GF Value™ of $3.34 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 852 Biotechnology companies, Puma Biotechnology ranks worse than 92.14% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Puma Biotechnology's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 8.73. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Puma Biotechnology's Degree of Operating Leverage or its related term are showing as below:
PBYI's Degree of Operating Leverage is ranked worse than 92.14% of 852
companies
in the Biotechnology industry
Industry Median: -0.04
vs PBYI: 8.73
Puma Biotechnology (NAS:PBYI) 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.
Puma Biotechnology Degree of Operating Leverage Related Terms
Puma Biotechnology Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Puma Biotechnology'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.
Puma Biotechnology Degree of Operating Leverage Chart
PBYI vs EVMN, OCGN, EDIT: Degree of Operating Leverage Comparison
For the Biotechnology subindustry, Puma Biotechnology'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.
Puma Biotechnology Degree of Operating Leverage vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Puma Biotechnology's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Puma Biotechnology'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 8.73 mean?
Puma Biotechnology (PBYI) has a Degree of Operating Leverage of 8.73 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 Puma Biotechnology and its competitors. According to the industry distribution chart, Puma Biotechnology ranks #785 out of 852 companies in the Biotechnology industry, placing it in the top 92.1%.
Is Puma Biotechnology's Degree of Operating Leverage too high?
Puma Biotechnology's current Degree of Operating Leverage is 8.73. Based on the distribution chart, Puma Biotechnology ranks #785 out of 852 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Puma Biotechnology has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Puma Biotechnology's Degree of Operating Leverage compare to EVMN and OCGN?
According to the Biotechnology industry distribution chart, Puma Biotechnology ranks #785 out of 852 companies for Degree of Operating Leverage. This places Puma Biotechnology in the lower half of its industry. 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 Puma Biotechnology and its competitors. Puma Biotechnology's current Degree of Operating Leverage is 8.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Puma Biotechnology stock overvalued right now?
Based on GuruFocus' analysis, Puma Biotechnology (PBYI) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.34, compared to a current price of $7.69 — trading 130.1% above its estimated fair value. The current Degree of Operating Leverage is 8.73. Puma Biotechnology's overall GF Score™ is 53/100 with 9 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 Puma Biotechnology (PBYI), the current Degree of Operating Leverage is 8.73 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 Puma Biotechnology (PBYI) Overvalued in 2026?
Based on GuruFocus' analysis, Puma Biotechnology stock appears to be overvalued.
The current stock price of $7.69 is trading 130.1% above its estimated GF Value™ of $3.34.
GuruFocus considers Puma Biotechnology to be Significantly Overvalued.
Key valuation signals for PBYI:
Degree of Operating Leverage: 8.73
GF Value™: $3.34 vs. price of $7.69 (130.1% above fair value)
No single metric tells the full story. See the PBYI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Puma Biotechnology Inc is a biopharmaceutical company that develops and commercializes inventive products to enhance cancer care and improve treatment outcomes for patients. It is currently commercializing NERLYNX, an oral version of neratinib, for the treatment of HER2-positive breast cancer. Also, it is developing Alisertib, a selective, small-molecule inhibitor of aurora kinase A that is designed to disrupt mitosis, resulting in apoptosis of rapidly proliferating tumor cells that are dependent on aurora kinase A.
53GF Score
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