TARS (Tarsus Pharmaceuticals) Effective Interest Rate on Debt %: 10.86% (As of Mar. 2026)


TARS Tarsus Pharmaceuticals Inc TARS
47 GF Score
Price $65.44
GF Value $203.47
Valuation Possible Value Trap
! 2 Warning Signs
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What is Tarsus Pharmaceuticals Effective Interest Rate on Debt %?

Tarsus Pharmaceuticals TARS +7.47% 47 Effective Interest Rate on Debt % is 10.86% as of Mar. 2026. GuruFocus rates TARS with a GF Score™ of 47/100 and a GF Value™ of $203.47 (Possible Value Trap). The stock has 2 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Tarsus Pharmaceuticals's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was $7.9 Mil. Tarsus Pharmaceuticals's average total debt for the quarter that ended in Mar. 2026 was $72.5 Mil. Therefore, Tarsus Pharmaceuticals's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 10.86%.


Tarsus Pharmaceuticals  (NAS:TARS) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Tarsus Pharmaceuticals Effective Interest Rate on Debt % Related Terms


Tarsus Pharmaceuticals Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Tarsus Pharmaceuticals's Effective Interest Rate on Debt % 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.

Tarsus Pharmaceuticals Effective Interest Rate on Debt % Chart

Tarsus Pharmaceuticals Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial 0.00 18.72 12.80 14.51 11.51

Tarsus Pharmaceuticals Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.46 11.57 11.69 11.37 10.86

TARS vs KLRA, CLDX, TRVI: Effective Interest Rate on Debt % Comparison

For the Biotechnology subindustry, Tarsus Pharmaceuticals's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.


Tarsus Pharmaceuticals Effective Interest Rate on Debt % vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Tarsus Pharmaceuticals's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Tarsus Pharmaceuticals's Effective Interest Rate on Debt % falls into.


TARS
47GF Score
Tarsus Pharmaceuticals Inc TARS
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Tarsus Pharmaceuticals Effective Interest Rate on Debt % Calculation

Tarsus Pharmaceuticals's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -8.342/( (72.453+72.438)/ 2 )
=-1  *  -8.342/72.4455
=11.51 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=71.845 + 0.608
=72.453

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=72.438 + 0
=72.438

Tarsus Pharmaceuticals's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -7.876/( (72.438+72.597)/ 2 )
=-1  *  -7.876/72.5175
=10.86 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=72.438 + 0
=72.438

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=72.597 + 0
=72.597

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 10.86% mean?
Tarsus Pharmaceuticals (TARS) has a Effective Interest Rate on Debt % of 10.86% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Tarsus Pharmaceuticals and its competitors.
Is Tarsus Pharmaceuticals' Effective Interest Rate on Debt % too high?
Tarsus Pharmaceuticals' current Effective Interest Rate on Debt % is 10.86%. Overall, Tarsus Pharmaceuticals has a GF Score™ of 47/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tarsus Pharmaceuticals' Effective Interest Rate on Debt % compare to KLRA and CLDX?
Tarsus Pharmaceuticals' Effective Interest Rate on Debt % of 10.86% can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Biotechnology company?
A good Effective Interest Rate on Debt % depends on the Biotechnology industry context. However, Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Tarsus Pharmaceuticals and its competitors. Tarsus Pharmaceuticals's current Effective Interest Rate on Debt % is 10.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tarsus Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Tarsus Pharmaceuticals (TARS) is currently considered Possible Value Trap. The stock's GF Value™ is $203.47, compared to a current price of $65.44 — trading 67.8% below its estimated fair value. The current Effective Interest Rate on Debt % is 10.86%. Tarsus Pharmaceuticals' overall GF Score™ is 47/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Tarsus Pharmaceuticals (TARS), the current Effective Interest Rate on Debt % is 10.86% 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 Tarsus Pharmaceuticals (TARS) Overvalued in 2026?

Based on GuruFocus' analysis, Tarsus Pharmaceuticals stock appears to be undervalued. The current stock price of $65.44 is trading 67.8% below its estimated GF Value™ of $203.47. GuruFocus considers Tarsus Pharmaceuticals to be Possible Value Trap.

Key valuation signals for TARS:

  • Effective Interest Rate on Debt %: 10.86%
  • GF Value™: $203.47 vs. price of $65.44 (67.8% below fair value)
  • GF Score™: 47/100 with 2 warning signs

No single metric tells the full story. See the TARS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tarsus Pharmaceuticals Business Description

Address 15440 Laguna Canyon Road, Suite 160, Irvine, CA, USA, 92618
Tarsus Pharmaceuticals Inc is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutics, starting with eye care. The company is focused on the development and commercialization of first-in-class therapeutic candidates to provide treatment for ophthalmic conditions. The company's candidate XDEMVY is a novel investigational eye drop to treat blepharitis caused by the infestation of Demodex mites, referred to as Demodex blepharitis. TP-04 for the potential treatment of ocular rosacea and TP-05 for potential Lyme disease prophylaxis and community malaria reduction.
47GF Score

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$65.44
Price
$203.47
GF Value