ASBFY (Associated British Foods) Debt-to-EBITDA : 1.56 (As of Feb. 2026) — 22% Above Median

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ASBFY Associated British Foods PLC ASBFY
80 GF Score
Price $27.58
GF Value $30.14
Valuation Fairly Valued
! 2 Warning Signs
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What is Associated British Foods Debt-to-EBITDA?

Associated British Foods ASBFY +1.70% 80 Debt-to-EBITDA is 1.56 as of Feb. 2026, which is 22% above its 10-year median of 1.28. GuruFocus rates ASBFY with a GF Score™ of 80/100 and a GF Value™ of $30.14 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,549 Consumer Packaged Goods companies, Associated British Foods ranks better than 60.17% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Associated British Foods's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2026 was $965 Mil. Associated British Foods's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2026 was $4,115 Mil. Associated British Foods's annualized EBITDA for the quarter that ended in Feb. 2026 was $3,258 Mil. Associated British Foods's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2026 was 1.56.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Associated British Foods's Debt-to-EBITDA or its related term are showing as below:

ASBFY' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.31   Med: 1.28   Max: 2.28
Current: 1.42

During the past 13 years, the highest Debt-to-EBITDA Ratio of Associated British Foods was 2.28. The lowest was 0.31. And the median was 1.28.

ASBFY's Debt-to-EBITDA is ranked better than
60.17% of 1549 companies
in the Consumer Packaged Goods industry
Industry Median: 2.08 vs ASBFY: 1.42

Associated British Foods  (OTCPK:ASBFY) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Associated British Foods Debt-to-EBITDA Related Terms


Associated British Foods Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Associated British Foods's Debt-to-EBITDA 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.

Associated British Foods Debt-to-EBITDA Chart

Associated British Foods Annual Data
Trend Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24 Aug25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.05 1.83 1.50 1.17 1.39

Associated British Foods Semi-Annual Data
Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24 Feb25 Aug25 Feb26
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.36 1.05 1.46 1.29 1.56

ASBFY vs KHC, GIS: Debt-to-EBITDA Comparison

For the Packaged Foods subindustry, Associated British Foods's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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.


Associated British Foods Debt-to-EBITDA vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Associated British Foods's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Associated British Foods's Debt-to-EBITDA falls into.


ASBFY
80GF Score
Associated British Foods PLC ASBFY
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
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Associated British Foods Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Associated British Foods's Debt-to-EBITDA for the fiscal year that ended in Aug. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(741.588 + 4219.381) / 3572.005
=1.39

Associated British Foods's annualized Debt-to-EBITDA for the quarter that ended in Feb. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(964.674 + 4115.489) / 3258.152
=1.56

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is two times the quarterly (Feb. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 1.56 mean?
Associated British Foods (ASBFY) has a Debt-to-EBITDA of 1.56 as of Feb. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Associated British Foods. This is 22% above median its historical median of 1.28. Over the past decade, Associated British Foods' Debt-to-EBITDA has ranged from 0.31 to 2.28. According to the industry distribution chart, Associated British Foods ranks #617 out of 1549 companies in the Consumer Packaged Goods industry, placing it in the top 39.8%.
Is Associated British Foods' Debt-to-EBITDA too high?
Associated British Foods' current Debt-to-EBITDA of 1.56 is 22% above median its 10-year median of 1.28. Over the past 10 years, this metric has ranged from a low of 0.31 to a high of 2.28. The Consumer Packaged Goods industry median Debt-to-EBITDA is 2.08. Associated British Foods' value of 1.56 is 25% below this industry median. Based on the distribution chart, Associated British Foods ranks #617 out of 1549 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Associated British Foods has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Associated British Foods' Debt-to-EBITDA compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Associated British Foods ranks #617 out of 1549 companies for Debt-to-EBITDA. This puts Associated British Foods in the upper half of its industry. The industry median Debt-to-EBITDA is 2.08. Associated British Foods' value of 1.56 is 25% below this benchmark. Historically, Associated British Foods' own Debt-to-EBITDA has ranged from 0.31 to 2.28 over the past decade. While the company's 10-year median is 1.28 vs. the industry median of 2.08, Associated British Foods 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 Debt-to-EBITDA for a Consumer Packaged Goods company?
The median Debt-to-EBITDA among Consumer Packaged Goods companies is 2.08, based on 1,549 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Associated British Foods's current Debt-to-EBITDA of 1.56 is 25% 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 Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Associated British Foods. For the Consumer Packaged Goods industry, the median Debt-to-EBITDA is 2.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Associated British Foods's current Debt-to-EBITDA is 1.56, which is 22% above median its own 10-year median of 1.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Associated British Foods stock overvalued right now?
Based on GuruFocus' analysis, Associated British Foods (ASBFY) is currently considered Fairly Valued. The stock's GF Value™ is $30.14, compared to a current price of $27.58 — trading 8.5% below its estimated fair value. The current Debt-to-EBITDA is 1.56, which is 22% above median its 10-year median of 1.28 and 25% below the Consumer Packaged Goods industry median of 2.08. Associated British Foods' overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Associated British Foods (ASBFY), the current Debt-to-EBITDA is 1.56 as of Feb. 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 Associated British Foods (ASBFY) Overvalued in 2026?

Based on GuruFocus' analysis, Associated British Foods stock appears to be undervalued. The current stock price of $27.58 is trading 8.5% below its estimated GF Value™ of $30.14. GuruFocus considers Associated British Foods to be Fairly Valued.

Key valuation signals for ASBFY:

  • Debt-to-EBITDA: 1.56 (22% above median its 10-year median of 1.28)
  • GF Value™: $30.14 vs. price of $27.58 (8.5% below fair value)
  • GF Score™: 80/100 with 2 warning signs
  • Industry Position: 25% below the Consumer Packaged Goods median (#617 of 1549)

No single metric tells the full story. See the ASBFY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Associated British Foods Business Description

Address 10 Grosvenor Street, Weston Centre, London, GBR, W1K 4QY
Associated British Foods is a diversified international food, ingredients, and retail group with 138,000 employees and operations in 56 countries across Europe, Africa, the Americas, Asia, and Australia. The group sells branded groceries, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the multinational Primark clothing retail chain. It also supplies ingredients like bakers' yeast, enzymes, lipids, and cereal specialties. In fiscal 2025, approximately 36% of sales came from the UK, and Primark accounted for around 60% of operating profit.On April 21, 2026, ABF announced it plans to separate Primark and the food businesses. Subject to approvals, the demerger is expected to become effective at the end of 2027.
80GF Score

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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$27.58
Price
$30.14
GF Value