Tarsus Pharmaceuticals (NAS:TARS) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Tarsus Pharmaceuticals Forward PE Ratio Related Terms
Tarsus Pharmaceuticals Forward PE Ratio Historical Data
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The historical data trend for Tarsus Pharmaceuticals's Forward PE Ratio 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 Forward PE Ratio Chart
Tarsus Pharmaceuticals Annual Data
Trend
2025-12
Forward PE Ratio
46.78
Tarsus Pharmaceuticals Quarterly Data
2025-09
2025-12
2026-03
Forward PE Ratio
35.25
46.78
105.67
TARS vs KLRA, CLDX, TRVI: Forward PE Ratio Comparison
For the Biotechnology subindustry, Tarsus Pharmaceuticals's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Tarsus Pharmaceuticals's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Tarsus Pharmaceuticals's Forward PE Ratio falls into.
Tarsus Pharmaceuticals Forward PE Ratio Calculation
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Tarsus Pharmaceuticals (TARS) has a Forward PE Ratio of 97.29 as of Jul. 06, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Tarsus Pharmaceuticals and its competitors. According to the industry distribution chart, Tarsus Pharmaceuticals ranks #297 out of 354 companies in the Biotechnology industry, placing it in the top 83.9%.
Is Tarsus Pharmaceuticals' Forward PE Ratio too high?
Tarsus Pharmaceuticals' current Forward PE Ratio is 97.29. The Biotechnology industry median Forward PE Ratio is 22.33. Tarsus Pharmaceuticals' value of 97.29 is 335.8% above this industry median. Based on the distribution chart, Tarsus Pharmaceuticals ranks #297 out of 354 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. 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' Forward PE Ratio compare to KLRA and CLDX?
According to the Biotechnology industry distribution chart, Tarsus Pharmaceuticals ranks #297 out of 354 companies for Forward PE Ratio. This places Tarsus Pharmaceuticals in the lower half of its industry. The industry median Forward PE Ratio is 22.33. Tarsus Pharmaceuticals' value of 97.29 is 335.8% 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 Forward PE Ratio for a Biotechnology company?
The median Forward PE Ratio among Biotechnology companies is 22.33, based on 354 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tarsus Pharmaceuticals's current Forward PE Ratio of 97.29 is 335.8% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Tarsus Pharmaceuticals and its competitors. For the Biotechnology industry, the median Forward PE Ratio is 22.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tarsus Pharmaceuticals's current Forward PE Ratio is 97.29. 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 $204.06, compared to a current price of $65.40 — trading 68% below its estimated fair value. The current Forward PE Ratio is 97.29 and 335.8% above the Biotechnology industry median of 22.33. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Tarsus Pharmaceuticals (TARS), the current Forward PE Ratio is 97.29 as of Jul. 06, 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 $65.40 is trading 68% below its estimated GF Value™ of $204.06.
GuruFocus considers Tarsus Pharmaceuticals to be Possible Value Trap.
Key valuation signals for TARS:
Forward PE Ratio: 97.29
GF Value™: $204.06 vs. price of $65.40 (68% below fair value)
Industry Position: 335.8% above the Biotechnology median (#297 of 354)
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 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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