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Simulations PlusSLP +0.05%82 Degree of Operating Leverage is 69.89 as of May. 2026. GuruFocus rates SLP with a GF Score™ of 82/100 and a GF Value™ of $35.22 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 648 Healthcare Providers & Services companies, Simulations Plus ranks worse than 97.84% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Simulations Plus's Degree of Operating Leverage for the quarter that ended in May. 2026 was 69.89. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Simulations Plus's Degree of Operating Leverage or its related term are showing as below:
SLP's Degree of Operating Leverage is ranked worse than 97.84% of 648
companies
in the Healthcare Providers & Services industry
Industry Median: 0.915
vs SLP: 69.89
Simulations Plus (NAS:SLP) 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.
Simulations Plus Degree of Operating Leverage Related Terms
Simulations Plus Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Simulations Plus'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.
Simulations Plus Degree of Operating Leverage Chart
SLP vs CARL, NRC, SY: Degree of Operating Leverage Comparison
For the Health Information Services subindustry, Simulations Plus'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.
Simulations Plus Degree of Operating Leverage vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Simulations Plus's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Simulations Plus'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 69.89 mean?
Simulations Plus (SLP) has a Degree of Operating Leverage of 69.89 as of May. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Simulations Plus and its competitors. According to the industry distribution chart, Simulations Plus ranks #634 out of 648 companies in the Healthcare Providers & Services industry, placing it in the top 97.8%.
Is Simulations Plus' Degree of Operating Leverage too high?
Simulations Plus' current Degree of Operating Leverage is 69.89. The Healthcare Providers & Services industry median Degree of Operating Leverage is 0.92. Simulations Plus' value of 69.89 is 7538.3% above this industry median. Based on the distribution chart, Simulations Plus ranks #634 out of 648 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Simulations Plus has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Simulations Plus' Degree of Operating Leverage compare to CARL and NRC?
According to the Healthcare Providers & Services industry distribution chart, Simulations Plus ranks #634 out of 648 companies for Degree of Operating Leverage. This places Simulations Plus in the lower half of its industry. The industry median Degree of Operating Leverage is 0.92. Simulations Plus' value of 69.89 is 7538.3% above 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 Operating Leverage for a Healthcare Providers & Services company?
The median Degree of Operating Leverage among Healthcare Providers & Services companies is 0.92, based on 648 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Simulations Plus's current Degree of Operating Leverage of 69.89 is 7538.3% 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 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 Simulations Plus and its competitors. For the Healthcare Providers & Services industry, the median Degree of Operating Leverage is 0.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simulations Plus's current Degree of Operating Leverage is 69.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simulations Plus stock overvalued right now?
Based on GuruFocus' analysis, Simulations Plus (SLP) is currently considered Significantly Undervalued. The stock's GF Value™ is $35.22, compared to a current price of $18.43 — trading 47.7% below its estimated fair value. The current Degree of Operating Leverage is 69.89 and 7538.3% above the Healthcare Providers & Services industry median of 0.92. Simulations Plus' overall GF Score™ is 82/100 with 7 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 Simulations Plus (SLP), the current Degree of Operating Leverage is 69.89 as of May. 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 Simulations Plus (SLP) Overvalued in 2026?
Based on GuruFocus' analysis, Simulations Plus stock appears to be undervalued.
The current stock price of $18.43 is trading 47.7% below its estimated GF Value™ of $35.22.
GuruFocus considers Simulations Plus to be Significantly Undervalued.
Key valuation signals for SLP:
Degree of Operating Leverage: 69.89
GF Value™: $35.22 vs. price of $18.43 (47.7% below fair value)
Industry Position: 7538.3% above the Healthcare Providers & Services median (#634 of 648)
No single metric tells the full story. See the SLP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simulations Plus Inc is engaged in the software industry. It develops and produces software for use in pharmaceutical research and education, and provides consulting and contract research services to the pharmaceutical industry. The company's operating segments include Software and services. The company offers software products for pharmaceutical research such as ADMET (Absorption, Distribution, Metabolism, Excretion, and Toxicity). It generates maximum revenue from the software segment. Maximum revenue is earned from USA following EMEA and Asia Pacific.
82GF Score
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