Latest Ratios: P/E Ratio -38.3x · 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 | $2.6B | $3.4B | $2.1B | $595M | $361M | $462M | $840M | — | — |
| Enterprise Value | $2.5B | $3.3B | $2.1B | $400M | $309M | $293M | $673M | — | — |
| P/E Ratio → | -38.30 | — | — | — | — | — | — | — | — |
| P/S Ratio | 5.80 | 7.58 | 11.38 | 34.10 | 13.98 | 8.11 | — | — | — |
| P/B Ratio | 7.41 | 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 |
Payer reimbursement and GTN
As reported in recent financial statements, TARS trades at a price-to-sales multiple of 6.00, which suggests that investors are pricing in significant long-term market share expansion rather than current earnings, given the company's negative TTM P/E of -39.57 and its early-stage commercial trajectory.
The current valuation multiple appears to be predicated on the assumption that Xdemvy will achieve widespread adoption as the standard of care for Demodex blepharitis. Investors should monitor whether this premium valuation holds as the company transitions from high-growth launch phases to more mature, volume-driven revenue cycles.
Based on the company's reported figures, the ROIC has remained consistently negative, reaching -1.6% in 2026Q1, which indicates that the firm is currently destroying value on invested capital as it prioritizes aggressive market penetration and clinical development over immediate bottom-line profitability.
The trend of negative returns on capital is typical for a commercial-stage biotech, but the narrowing gap from -49.5% in 2024Q1 suggests that operational efficiency is improving. Future compounding of returns will likely depend on the company's ability to scale revenue without proportional increases in R&D and commercial overhead.
According to the latest quarterly filings, the cash conversion cycle has fluctuated wildly, reaching -94 days in 2026Q1, which reflects the company's ongoing struggle to balance inventory management with the extended payment terms often required to secure formulary access in the competitive US ophthalmic market.
The extreme volatility in the CCC, driven by high DPO levels, suggests that Tarsus is leveraging its supplier relationships to preserve cash during its commercial ramp-up. Analysts should investigate whether these payment terms are sustainable or if they represent a temporary liquidity management strategy that may tighten in future periods.
As indicated by the financial statements, the current ratio of 3.74 in 2026Q1 provides an adequate liquidity buffer, though this has moderated from the 8.01 level seen in 2024Q1 as the company actively deploys capital to fund its commercial infrastructure and pipeline expansion.
While the current liquidity position appears stable, the rapid consumption of cash reserves warrants close monitoring as the company pursues systemic indications. The firm's ability to maintain this buffer will be critical if the commercial launch of Xdemvy faces unexpected payer friction or reimbursement delays.
Based on the provided data, the P/E ratio is a fundamentally flawed metric for Tarsus, as it obscures the company's massive investment in commercial infrastructure and R&D, which are currently being expensed rather than capitalized, thereby artificially depressing earnings and rendering the P/E multiple meaningless.
Investors should instead focus on the price-to-sales ratio or enterprise value to peak revenue estimates to gauge the company's true market potential. Relying on P/E in this context risks misinterpreting a high-growth, investment-heavy phase as a sign of structural unprofitability.
Includes 30+ ratios · 8 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
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 -38.3x. 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 -38.3x. 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.