Latest Ratios: P/E Ratio -46.7x · EV/EBITDA N/A · ROE -23.4%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.2B | $3.4B | $2.1B | $595M | $361M | $462M | $840M | — | — |
| Enterprise Value | $3.1B | $3.3B | $2.1B | $400M | $309M | $293M | $673M | — | — |
| P/E Ratio → | -46.72 | — | — | — | — | — | — | — | — |
| P/S Ratio | 7.08 | 7.58 | 11.38 | 34.10 | 13.98 | 8.11 | — | — | — |
| P/B Ratio | 9.04 | 9.96 | 9.27 | 3.02 | 1.87 | 2.77 | 5.06 | — | — |
| P/FCF | — | — | — | — | — | 146.26 | — | — | — |
| P/OCF | — | — | — | — | — | 123.39 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.38 | 11.26 | 22.94 | 11.99 | 5.14 | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | 92.67 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 93.2% | 93.2% | 93.0% | 90.9% | 96.3% | 96.4% | — | — | — |
| Operating Margin | -15.7% | -15.7% | -65.9% | -820.5% | -242.9% | -21.3% | — | — | — |
| Net Profit Margin | -14.7% | -14.7% | -63.2% | -778.9% | -240.5% | -24.2% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | -23.4% | -23.4% | -54.8% | -69.7% | -34.5% | -8.3% | -33.5% | — | — |
| ROA | -14.1% | -14.1% | -36.0% | -55.1% | -30.5% | -7.9% | -23.3% | -15.4% | -55.2% |
| ROIC | -23.4% | -23.4% | -88.5% | -149.4% | -67.8% | — | — | — | — |
| ROCE | -19.6% | -19.6% | -45.9% | -64.9% | -33.0% | -7.3% | -24.1% | -14.4% | -61.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.27 | 0.27 | 0.32 | 0.15 | 0.10 | 0.01 | 0.01 | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.26 | -0.10 | -0.99 | -0.27 | -1.02 | -1.01 | — | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | -53.59 | — | — | — |
| Interest Coverage | -6.20 | -6.20 | -14.46 | -41.10 | -29.08 | — | -142.61 | -115.72 | — |
Net cash position: cash ($184M) exceeds total debt ($94M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.85 | 3.85 | 4.42 | 6.93 | 14.61 | 15.33 | 31.68 | 70.85 | 13.31 |
| Quick Ratio | 3.82 | 3.82 | 4.39 | 6.85 | 14.61 | 15.33 | 31.68 | 70.85 | 13.31 |
| Cash Ratio | 3.08 | 3.08 | 3.61 | 6.16 | 14.07 | 14.97 | 31.21 | 70.76 | 13.16 |
| Asset Turnover | — | 0.80 | 0.49 | 0.07 | 0.11 | 0.32 | — | — | — |
| Inventory Turnover | 7.02 | 7.02 | 4.90 | 0.51 | — | — | — | — | — |
| Days Sales Outstanding | — | 70.44 | 95.88 | 370.59 | 50.64 | 0.59 | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | 0.7% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $42M | $38M | $29M | $25M | $21M | $20M | $20M | $4M |
Includes 30+ ratios · 8 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TARS stock.
Tarsus Pharmaceuticals, Inc.'s current P/E ratio is -46.7x. This places it at the 50th percentile of its historical range.
Tarsus Pharmaceuticals, Inc.'s return on equity (ROE) is -23.4%. The historical average is -37.4%.
Based on historical data, Tarsus Pharmaceuticals, Inc. is trading at a P/E of -46.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Tarsus Pharmaceuticals, Inc. has 93.2% gross margin and -15.7% operating margin.
Key Metrics
Top Statement Risk
Gross-to-net erosion and payer friction
Metrics are mathematically derived from official filings.
Gross Margin Strength Masks Operating Leverage
Gross margin held at 93.0% in 2026Q2, per reported financials, while operating margin improved from -136.5% in 2024Q1 to -11.4%, indicating early operating leverage.
The gross margin stability above 92% across most quarters, except the 79.3% dip in 2025Q3, suggests manufacturing scale and pricing power are intact. Operating margin improvement from -136.5% to -11.4% over ten quarters reflects SG&A growing slower than revenue, a sign of emerging operating leverage. However, the negative operating margin still indicates that commercialization and R&D costs outweigh gross profits, so the path to profitability depends on sustaining volume growth without proportional cost increases.
Working Capital Swings Drive Cash Flow Volatility
Cash conversion cycle improved from -738 days in 2024Q1 to -151 days in 2026Q2, per reported figures, driven by negative DPO trends and inventory management.
The negative CCC, ranging from -738 to -151 days, reflects a business model where TARS collects cash from customers before paying suppliers, a structural advantage typical of specialty pharma. DPO improved from 1015 days in 2024Q1 to 241 days in 2026Q2, indicating more normalized payment terms, while DSO remained stable around 56 days. The working capital tailwind of $35.0M in 2026Q2, per recent SEC filings, may reverse, so investors should monitor whether the negative CCC is sustainable as the company scales.
Low Leverage Provides Refinancing Flexibility
D/E ratio held at 0.26 in 2026Q2, according to reported financials, with total debt of $88.7M, indicating modest leverage that supports future capital needs.
The D/E ratio has remained below 0.32 across all ten quarters, reflecting a conservative capital structure with minimal reliance on debt. Interest coverage is negative due to operating losses, but the low absolute debt level suggests refinancing risk is limited. As the company approaches potential profitability, the modest leverage provides headroom for pipeline investments without immediate covenant pressure.
Liquidity Buffer Strong but Working Capital Dependent
Current ratio stood at 3.20 in 2026Q2, per recent SEC filings, with cash of $204.6M, though a $35.0M working capital benefit may reverse.
The current ratio has declined from 8.01 in 2024Q1 to 3.20 in 2026Q2, reflecting increased operational scale and cash deployment. The quick ratio of 3.17 indicates minimal inventory dependence, consistent with an asset-light model. However, the $35.0M working capital tailwind in 2026Q2, per reported figures, may reverse, potentially reducing the liquidity cushion. Investors should monitor whether the cash position remains robust as operating losses narrow.
ROIC Improving from Deep Negative Base
ROIC improved from -49.5% in 2024Q1 to -5.3% in 2026Q2, according to reported figures, reflecting narrowing losses and better capital efficiency.
The ROIC trend shows a clear trajectory of improvement, driven by revenue growth outpacing invested capital expansion. The improvement from -49.5% to -5.3% over ten quarters suggests the company is approaching a breakeven return on capital, though still negative. The driver is margin expansion rather than asset turnover, which remained stable around 0.29. If operating leverage continues, ROIC could turn positive within the next few quarters, but this depends on sustaining revenue growth.
Gross Margin Misapplied as Profitability Proxy
Gross margin of 93.0% in 2026Q2, per reported financials, is often cited as a strength, but it obscures the negative operating margin and GTN erosion risk.
The 93% gross margin is a common misapplication for TARS because it reflects the low marginal cost of lotilaner production, not the true earning power of the business. Operating margin of -11.4% and net margin of -10.7% in 2026Q2, according to reported figures, show that SG&A and R&D costs dominate. Additionally, gross-to-net erosion from Medicare Part D coverage could compress net revenue per bottle, making gross margin an unreliable indicator of profitability. Investors should focus on operating margin and net revenue per prescription as more accurate measures of economic value.