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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 Megaport's Debt-to-EBITDA or its related term are showing as below:
ASX:MP1'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.83 Med: -0.01 Max: 2.34
Current: 2.34
During the past 10 years, the highest Debt-to-EBITDA Ratio of Megaport was 2.34. The lowest was -3.83. And the median was -0.01.
ASX:MP1's Debt-to-EBITDA is ranked worse than 68.07% of 1716
companies
in the Software industry
Industry Median: 1.08
vs ASX:MP1: 2.34
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.
Megaport Debt-to-EBITDA Related Terms
Megaport Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Megaport'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:MP1 vs MSFT, ORCL, PLTR: Debt-to-EBITDA Comparison
For the Software - Infrastructure subindustry, Megaport'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.
Megaport Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Megaport's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Megaport'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.
Megaport (ASX:MP1) has a Debt-to-EBITDA of 4.26 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 Megaport. According to the industry distribution chart, Megaport ranks #1168 out of 1716 companies in the Software industry, placing it in the top 68.1%.
Is Megaport's Debt-to-EBITDA too high?
Megaport's current Debt-to-EBITDA is 4.26. The Software industry median Debt-to-EBITDA is 1.08. Megaport's value of 4.26 is 294.4% above this industry median. Based on the distribution chart, Megaport ranks #1168 out of 1716 companies in the Software industry, which is below the industry midpoint. Overall, Megaport has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Megaport's Debt-to-EBITDA compare to MSFT and ORCL?
According to the Software industry distribution chart, Megaport ranks #1168 out of 1716 companies for Debt-to-EBITDA. This places Megaport in the lower half of its industry. The industry median Debt-to-EBITDA is 1.08. Megaport's value of 4.26 is 294.4% above this benchmark. 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 1.08, based on 1,716 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. Megaport's current Debt-to-EBITDA of 4.26 is 294.4% 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 Megaport. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Megaport's current Debt-to-EBITDA is 4.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megaport stock overvalued right now?
Based on GuruFocus' analysis, Megaport (ASX:MP1) is currently considered Fairly Valued. The stock's GF Value™ is A$17.62, compared to a current price of A$18.23 — trading 3.5% above its estimated fair value. The current Debt-to-EBITDA is 4.26 and 294.4% above the Software industry median of 1.08. Megaport's overall GF Score™ is 78/100 with 3 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 Megaport (ASX:MP1), the current Debt-to-EBITDA is 4.26 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 Megaport (ASX:MP1) Overvalued in 2026?
Based on GuruFocus' analysis, Megaport stock appears to be overvalued.
The current stock price of A$18.23 is trading 3.5% above its estimated GF Value™ of A$17.62.
GuruFocus considers Megaport to be Fairly Valued.
Key valuation signals for ASX:MP1:
Debt-to-EBITDA: 4.26
GF Value™: A$17.62 vs. price of A$18.23 (3.5% above fair value)
Industry Position: 294.4% above the Software median (#1168 of 1716)
No single metric tells the full story. See the ASX:MP1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Megaport is one of the world's largest software-defined network service providers, enabling around 3,000 enterprise customers to connect to over 1,000 data centers throughout the world. Megaport's services mostly revolve around enabling enterprises to connect to cloud service providers, like Amazon Web Services, but it also offers services to enable businesses to connect across multiple data centers, to internet exchanges, and to buy compute capacity.
78GF Score
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