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Ligand PharmaceuticalsSTU:LGDN 74 Interest Coverage is 9.94 as of Mar. 2026, which is 96% above its 10-year median of 5.06. GuruFocus rates STU:LGDN with a GF Score™ of 74/100 and a GF Value™ of €153.80 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 374 Biotechnology companies, Ligand Pharmaceuticals ranks worse than 68.18% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Ligand Pharmaceuticals's
Operating Income
for the
three
months ended in Mar. 2026 was €15.0 Mil. Ligand Pharmaceuticals's Interest Expense for the
three
months ended in Mar. 2026 was €-1.5 Mil.
Ligand Pharmaceuticals's interest coverage for the quarter that ended in Mar. 2026 was 9.94.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Ligand Pharmaceuticals's Interest Coverage or its related term are showing as below:
STU:LGDN'
s Interest Coverage Range Over the Past 10 Years
Min: 0.74 Med: 5.06 Max: 18.09
Current: 18.09
STU:LGDN's Interest Coverage is ranked worse than 68.18% of 374
companies
in the Biotechnology industry
Industry Median: 104.025
vs STU:LGDN: 18.09
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Ligand Pharmaceuticals Interest Coverage Related Terms
Ligand Pharmaceuticals Interest Coverage Historical Data
* Premium members only.
The historical data trend for Ligand Pharmaceuticals's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:LGDN vs CGON, DFTX, XENE: Interest Coverage Comparison
For the Biotechnology subindustry, Ligand Pharmaceuticals's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.
Ligand Pharmaceuticals Interest Coverage vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Ligand Pharmaceuticals's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ligand Pharmaceuticals's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Ligand Pharmaceuticals (STU:LGDN) has a Interest Coverage of 9.94 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ligand Pharmaceuticals and its competitors. This is 96% above median its historical median of 5.06. Over the past decade, Ligand Pharmaceuticals' Interest Coverage has ranged from 0.74 to 18.09. According to the industry distribution chart, Ligand Pharmaceuticals ranks #255 out of 374 companies in the Biotechnology industry, placing it in the top 68.2%.
Is Ligand Pharmaceuticals' Interest Coverage too high?
Ligand Pharmaceuticals' current Interest Coverage of 9.94 is 96% above median its 10-year median of 5.06. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 18.09. The Biotechnology industry median Interest Coverage is 104.03. Ligand Pharmaceuticals' value of 9.94 is 90.4% below this industry median. Based on the distribution chart, Ligand Pharmaceuticals ranks #255 out of 374 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Ligand Pharmaceuticals has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ligand Pharmaceuticals' Interest Coverage compare to CGON and DFTX?
According to the Biotechnology industry distribution chart, Ligand Pharmaceuticals ranks #255 out of 374 companies for Interest Coverage. This places Ligand Pharmaceuticals in the lower half of its industry. The industry median Interest Coverage is 104.03. Ligand Pharmaceuticals' value of 9.94 is 90.4% below this benchmark. Historically, Ligand Pharmaceuticals' own Interest Coverage has ranged from 0.74 to 18.09 over the past decade. While the company's 10-year median is 5.06 vs. the industry median of 104.03, Ligand Pharmaceuticals has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Biotechnology company?
The median Interest Coverage among Biotechnology companies is 104.03, based on 374 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ligand Pharmaceuticals's current Interest Coverage of 9.94 is 90.4% below 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ligand Pharmaceuticals and its competitors. For the Biotechnology industry, the median Interest Coverage is 104.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ligand Pharmaceuticals's current Interest Coverage is 9.94, which is 96% above median its own 10-year median of 5.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ligand Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Ligand Pharmaceuticals (STU:LGDN) is currently considered Significantly Overvalued. The stock's GF Value™ is €153.80, compared to a current price of €260.00 — trading 69.1% above its estimated fair value. The current Interest Coverage is 9.94, which is 96% above median its 10-year median of 5.06 and 90.4% below the Biotechnology industry median of 104.03. Ligand Pharmaceuticals' overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Ligand Pharmaceuticals (STU:LGDN), the current Interest Coverage is 9.94 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 Ligand Pharmaceuticals (STU:LGDN) Overvalued in 2026?
Based on GuruFocus' analysis, Ligand Pharmaceuticals stock appears to be overvalued.
The current stock price of €260.00 is trading 69.1% above its estimated GF Value™ of €153.80.
GuruFocus considers Ligand Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for STU:LGDN:
Interest Coverage: 9.94 (96% above median its 10-year median of 5.06)
GF Value™: €153.80 vs. price of €260.00 (69.1% above fair value)
Industry Position: 90.4% below the Biotechnology median (#255 of 374)
No single metric tells the full story. See the STU:LGDN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ligand Pharmaceuticals Inc is a biopharmaceutical company focused on developing and acquiring technologies that aid in creating medicine. The company has partnerships and license agreements with various pharmaceutical and biotechnology companies. Ligand's business model is based on drug discovery, early-stage drug development, product reformulation, and partnerships. The company's revenue consists of three primary elements: royalties from commercialized products, license and milestone payments, and sale of its trademarked Captisol material.
74GF Score
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