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EROADASX:ERD +2.50%39 Debt-to-EBITDA is 4.01 as of Mar. 2026, which is 197% above its 10-year median of 1.35. GuruFocus rates ASX:ERD with a GF Score™ of 39/100 and a GF Value™ of A$0.77 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,720 Software companies, EROAD ranks worse than 58139.48% 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 EROAD's Debt-to-EBITDA or its related term are showing as below:
ASX:ERD'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.3 Med: 1.35 Max: 2.74
Current: -0.3
During the past 11 years, the highest Debt-to-EBITDA Ratio of EROAD was 2.74. The lowest was -0.30. And the median was 1.35.
ASX:ERD's Debt-to-EBITDA is ranked worse than 100% of 1720
companies
in the Software industry
Industry Median: 1.085
vs ASX:ERD: -0.30
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.
EROAD Debt-to-EBITDA Related Terms
EROAD Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for EROAD'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:ERD vs MSFT, ORCL, PLTR: Debt-to-EBITDA Comparison
For the Software - Infrastructure subindustry, EROAD'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.
EROAD Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, EROAD's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where EROAD'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 (Mar. 2026) EBITDA data.
EROAD (ASX:ERD) has a Debt-to-EBITDA of 4.01 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on EROAD. This is 197% above median its historical median of 1.35. According to the industry distribution chart, EROAD ranks #999999 out of 1720 companies in the Software industry.
Is EROAD's Debt-to-EBITDA too high?
EROAD's current Debt-to-EBITDA of 4.01 is 197% above median its 10-year median of 1.35. The Software industry median Debt-to-EBITDA is 1.09. EROAD's value of 4.01 is 269.6% above this industry median. Based on the distribution chart, EROAD ranks #999999 out of 1720 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, EROAD has a GF Score™ of 39/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does EROAD's Debt-to-EBITDA compare to MSFT and ORCL?
According to the Software industry distribution chart, EROAD ranks #999999 out of 1720 companies for Debt-to-EBITDA. This places EROAD in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. EROAD's value of 4.01 is 269.6% above this benchmark. While the company's 10-year median is 1.35 vs. the industry median of 1.09, EROAD 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 a Software company?
The median Debt-to-EBITDA among Software companies is 1.09, based on 1,720 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. EROAD's current Debt-to-EBITDA of 4.01 is 269.6% 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 EROAD. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EROAD's current Debt-to-EBITDA is 4.01, which is 197% above median its own 10-year median of 1.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EROAD stock overvalued right now?
Based on GuruFocus' analysis, EROAD (ASX:ERD) is currently considered Fairly Valued. The stock's GF Value™ is A$0.77, compared to a current price of A$0.82 — trading 6.5% above its estimated fair value. The current Debt-to-EBITDA is 4.01, which is 197% above median its 10-year median of 1.35 and 269.6% above the Software industry median of 1.09. EROAD's overall GF Score™ is 39/100 with 7 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 EROAD (ASX:ERD), the current Debt-to-EBITDA is 4.01 as of Mar. 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 EROAD (ASX:ERD) Overvalued in 2026?
Based on GuruFocus' analysis, EROAD stock appears to be overvalued.
The current stock price of A$0.82 is trading 6.5% above its estimated GF Value™ of A$0.77.
GuruFocus considers EROAD to be Fairly Valued.
Key valuation signals for ASX:ERD:
Debt-to-EBITDA: 4.01 (197% above median its 10-year median of 1.35)
GF Value™: A$0.77 vs. price of A$0.82 (6.5% above fair value)
Industry Position: 269.6% above the Software median (#999999 of 1720)
No single metric tells the full story. See the ASX:ERD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EROAD Ltd is a New Zealand Based company which is a fully integrated technology, tolling and services provider. It designs and manufactures in-vehicle hardware operates secure payment and merchant gateways and offers web-based value-added services. The company provides electronic on-board units and software as a service to the transport industry. Its products are categorized in RUC Compliance, Health & Safety, and Fleet Management. It operates through four segments: Corporate & Development, North America, Australia, and New Zealand.
39GF Score
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