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ChallengerASX:CGF +2.48%57 Debt-to-EBITDA is 8.97 as of Dec. 2025, which is 13% above its 10-year median of 7.92. GuruFocus rates ASX:CGF with a GF Score™ of 57/100 and a GF Value™ of A$4.01 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 321 Insurance companies, Challenger ranks worse than 96.88% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
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 Challenger's Debt-to-EBITDA or its related term are showing as below:
ASX:CGF'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -21.6 Med: 7.92 Max: 14.01
Current: 10.32
During the past 13 years, the highest Debt-to-EBITDA Ratio of Challenger was 14.01. The lowest was -21.60. And the median was 7.92.
ASX:CGF's Debt-to-EBITDA is ranked worse than 96.88% of 321
companies
in the Insurance industry
Industry Median: 1.19
vs ASX:CGF: 10.32
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.
Challenger Debt-to-EBITDA Related Terms
Challenger Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Challenger'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.
ASX:CGF vs AFL, MET, PRU: Debt-to-EBITDA Comparison
For the Insurance - Life subindustry, Challenger'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.
Challenger Debt-to-EBITDA vs Insurance Industry
For the Insurance industry and Financial Services sector, Challenger's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Challenger's Debt-to-EBITDA falls into.
* 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 (Dec. 2025) EBITDA data.
Challenger (ASX:CGF) has a Debt-to-EBITDA of 8.97 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Challenger. This is 13% above median its historical median of 7.92. According to the industry distribution chart, Challenger ranks #311 out of 321 companies in the Insurance industry, placing it in the top 96.9%.
Is Challenger's Debt-to-EBITDA too high?
Challenger's current Debt-to-EBITDA of 8.97 is 13% above median its 10-year median of 7.92. The Insurance industry median Debt-to-EBITDA is 1.19. Challenger's value of 8.97 is 653.8% above this industry median. Based on the distribution chart, Challenger ranks #311 out of 321 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Challenger has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Challenger's Debt-to-EBITDA compare to AFL and MET?
According to the Insurance industry distribution chart, Challenger ranks #311 out of 321 companies for Debt-to-EBITDA. This places Challenger in the lower half of its industry. The industry median Debt-to-EBITDA is 1.19. Challenger's value of 8.97 is 653.8% above this benchmark. While the company's 10-year median is 7.92 vs. the industry median of 1.19, Challenger has consistently been above 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 an Insurance company?
The median Debt-to-EBITDA among Insurance companies is 1.19, based on 321 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. Challenger's current Debt-to-EBITDA of 8.97 is 653.8% above 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 Challenger. For the Insurance industry, the median Debt-to-EBITDA is 1.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Challenger's current Debt-to-EBITDA is 8.97, which is 13% above median its own 10-year median of 7.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Challenger stock overvalued right now?
Based on GuruFocus' analysis, Challenger (ASX:CGF) is currently considered Significantly Overvalued. The stock's GF Value™ is A$4.01, compared to a current price of A$10.75 — trading 168.1% above its estimated fair value. The current Debt-to-EBITDA is 8.97, which is 13% above median its 10-year median of 7.92 and 653.8% above the Insurance industry median of 1.19. Challenger's overall GF Score™ is 57/100 with 9 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 Challenger (ASX:CGF), the current Debt-to-EBITDA is 8.97 as of Dec. 2025. 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 Challenger (ASX:CGF) Overvalued in 2026?
Based on GuruFocus' analysis, Challenger stock appears to be overvalued.
The current stock price of A$10.75 is trading 168.1% above its estimated GF Value™ of A$4.01.
GuruFocus considers Challenger to be Significantly Overvalued.
Key valuation signals for ASX:CGF:
Debt-to-EBITDA: 8.97 (13% above median its 10-year median of 7.92)
GF Value™: A$4.01 vs. price of A$10.75 (168.1% above fair value)
Industry Position: 653.8% above the Insurance median (#311 of 321)
No single metric tells the full story. See the ASX:CGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Challenger's core business is selling annuity products in the Australian retirement market and, since November 2016, selling Australian dollar-denominated annuities into Japan's large retirement market. The firm's annuity products provide investors guaranteed regular payments over an agreed term for an upfront lump sum investment and is designed primarily to protect investors from the longevity risk of outliving their savings. Challenger also operates a funds management business, Fidante Partners, which has minority stakes in several boutique global investment managers, and Challenger Investment Management, which primarily manages investments supporting its annuities business.
57GF Score
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