This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Rhythm Pharmaceuticals's Enterprise Value for the quarter that ended in Mar. 2026 was $5,730.6 Mil.
Rhythm Pharmaceuticals's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-182.0 Mil.
* 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.
* 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.
For the Biotechnology subindustry, Rhythm Pharmaceuticals's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.
Rhythm Pharmaceuticals EV-to-EBIT vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Rhythm Pharmaceuticals's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Rhythm Pharmaceuticals's EV-to-EBIT falls into.
Rhythm Pharmaceuticals's current Enterprise Value is $7,213.5 Mil.
Rhythm Pharmaceuticals's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $-182.0 Mil.
* 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.
Rhythm Pharmaceuticals (RYTM) has a EV-to-EBIT of -39.64 as of Jul. 13, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Rhythm Pharmaceuticals and its competitors. According to the industry distribution chart, Rhythm Pharmaceuticals ranks #999999 out of 365 companies in the Biotechnology industry.
Is Rhythm Pharmaceuticals' EV-to-EBIT too high?
Rhythm Pharmaceuticals' current EV-to-EBIT is -39.64. Based on the distribution chart, Rhythm Pharmaceuticals ranks #999999 out of 365 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Rhythm Pharmaceuticals has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rhythm Pharmaceuticals' EV-to-EBIT compare to MIRM and SYRE?
According to the Biotechnology industry distribution chart, Rhythm Pharmaceuticals ranks #999999 out of 365 companies for EV-to-EBIT. This places Rhythm Pharmaceuticals in the lower half of its industry. The industry median EV-to-EBIT is 14.29. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Biotechnology company?
The median EV-to-EBIT among Biotechnology companies is 14.29, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Rhythm Pharmaceuticals and its competitors. For the Biotechnology industry, the median EV-to-EBIT is 14.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rhythm Pharmaceuticals's current EV-to-EBIT is -39.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rhythm Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Rhythm Pharmaceuticals (RYTM) is currently considered Fairly Valued. The stock's GF Value™ is $112.25, compared to a current price of $108.40 — trading 3.4% below its estimated fair value. The current EV-to-EBIT is -39.64. Rhythm Pharmaceuticals' overall GF Score™ is 54/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Rhythm Pharmaceuticals (RYTM), the current EV-to-EBIT is -39.64 as of Jul. 13, 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 Rhythm Pharmaceuticals (RYTM) Overvalued in 2026?
Based on GuruFocus' analysis, Rhythm Pharmaceuticals stock appears to be undervalued.
The current stock price of $108.40 is trading 3.4% below its estimated GF Value™ of $112.25.
GuruFocus considers Rhythm Pharmaceuticals to be Fairly Valued.
Key valuation signals for RYTM:
EV-to-EBIT: -39.64
GF Value™: $112.25 vs. price of $108.40 (3.4% below fair value)
No single metric tells the full story. See the RYTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rhythm Pharmaceuticals Inc is a commercial-stage biopharmaceutical company engaged in the development and commercialization of therapies for patients with rare neuroendocrine diseases. The company is focused on advancing its melanocortin-4 receptor (MC4R) agonists, including its main asset, IMCIVREE (setmelanotide), as a precision medicine designed to treat hyperphagia and severe obesity caused by rare MC4R pathway diseases. In addition, it has two early-stage investigational MC4R agonists in clinical development, RM-718 and bivamelagon, designed not to cause hyperpigmentation. The company is also focused on advancing potential candidates for congenital hyperinsulinism. It currently operates in two business segments: the United States, which generates maximum revenue, and International.
54GF Score
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