Built from weaker models, sales multiples or analyst targets, so treat it as a rough guide.
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Valued as a loss-making company: Sales comps and Analyst consensus.
ACCE opinionTarsus Pharmaceuticals Inc. Common Stock (TARS)
Fair value
Not available
ACCE price target
$82.00
Rating
Not rated
Horizon
12 months
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Price used: $68.20 at the close on 23 Oct 2026, 22:00 CEST.
Models: Analyst consensus and Sales comps.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
49
out of 100
Analysts
100% buy
10 covering
1-year return
-0.2%
Dividend yield
0.00%
Tarsus Pharmaceuticals Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Tarsus Pharmaceuticals sells XDEMVY, an eye drop for Demodex blepharitis, and is building a pipeline around treatments for ocular conditions, which makes its revenue a single-product story for now. Its case rests on that product's early commercial ramp: revenue is growing 69.4% year over year, and an 82.7% gross margin shows the drug earns well once it sells. Operating margin is still negative at -11.5%, so the business is not yet covering its costs, and the stock trades at a forward P/E of 68 on earnings that remain thin. At a $3.3B market cap with a 48/100 score and no index membership, the name is priced for continued launch execution, and the diligence question is how quickly operating margin turns positive as sales scale.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Cash burn despite growth
Free cash flow is -$22.3M while revenue grew 69.4% YoY. Earnings growth is flat at 0.0%, and operating margin sits at -11.5%, so growth is not yet converting to cash.
moderate
Elevated short interest
Short interest stands at 16.8% of float. Combined with negative operating margin and cash burn, this signals meaningful bearish positioning among market participants.
moderate
Insider selling, no buying
Insiders sold $6.72M across the last 10 disclosed transactions and bought nothing. Insider ownership is only 2.7%, so the signal carries limited weight but is one-directional.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 69.4% year over year, and has averaged 68.3% growth per year over five years.
All 10 analysts covering the stock rate it Buy or Strong Buy, and their mean price target sits well above the current price.
Debt is modest at 0.27 times equity, so the company is not leaning heavily on borrowed money.
Why it could disappoint
The company still loses money, with a net margin of -7.7% and free cash flow of -$22M over the last twelve months.
Shareholders are being diluted, as the diluted share count rose 11.1% last fiscal year.
Latest earnings missed badly, with EPS of -0.43 against an expected -0.21, a 104.8% shortfall.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where TARS's valuation models land
Price
$68.20
Model fair valueConfidence: low
about $73.16
Model
Fair value
Upside
Analyst consensus
Sales comps
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Quality
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