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NextdcASX:NXT -0.53%86 Debt-to-EBITDA is 11.37 as of Dec. 2025, which is 59% above its 10-year median of 7.17. GuruFocus rates ASX:NXT with a GF Score™ of 86/100 and a GF Value™ of A$15.24 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,716 Software companies, Nextdc ranks worse than 94.46% 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 Nextdc's Debt-to-EBITDA or its related term are showing as below:
ASX:NXT'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 4.36 Med: 7.17 Max: 11.55
Current: 11.55
During the past 13 years, the highest Debt-to-EBITDA Ratio of Nextdc was 11.55. The lowest was 4.36. And the median was 7.17.
ASX:NXT's Debt-to-EBITDA is ranked worse than 94.46% of 1716
companies
in the Software industry
Industry Median: 1.085
vs ASX:NXT: 11.55
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.
Nextdc Debt-to-EBITDA Related Terms
Nextdc Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Nextdc'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:NXT vs IBM, ACN, FISV: Debt-to-EBITDA Comparison
For the Information Technology Services subindustry, Nextdc'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.
Nextdc Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Nextdc's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Nextdc'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.
Nextdc (ASX:NXT) has a Debt-to-EBITDA of 11.37 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 Nextdc. This is 59% above median its historical median of 7.17. Over the past decade, Nextdc's Debt-to-EBITDA has ranged from 4.36 to 11.55. According to the industry distribution chart, Nextdc ranks #1621 out of 1716 companies in the Software industry, placing it in the top 94.5%.
Is Nextdc's Debt-to-EBITDA too high?
Nextdc's current Debt-to-EBITDA of 11.37 is 59% above median its 10-year median of 7.17. Over the past 10 years, this metric has ranged from a low of 4.36 to a high of 11.55. The Software industry median Debt-to-EBITDA is 1.09. Nextdc's value of 11.37 is 947.9% above this industry median. Based on the distribution chart, Nextdc ranks #1621 out of 1716 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Nextdc has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nextdc's Debt-to-EBITDA compare to IBM and ACN?
According to the Software industry distribution chart, Nextdc ranks #1621 out of 1716 companies for Debt-to-EBITDA. This places Nextdc in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. Nextdc's value of 11.37 is 947.9% above this benchmark. Historically, Nextdc's own Debt-to-EBITDA has ranged from 4.36 to 11.55 over the past decade. While the company's 10-year median is 7.17 vs. the industry median of 1.09, Nextdc 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 1,716 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. Nextdc's current Debt-to-EBITDA of 11.37 is 947.9% 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 Nextdc. 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. Nextdc's current Debt-to-EBITDA is 11.37, which is 59% above median its own 10-year median of 7.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nextdc stock overvalued right now?
Based on GuruFocus' analysis, Nextdc (ASX:NXT) is currently considered Modestly Undervalued. The stock's GF Value™ is A$15.24, compared to a current price of A$13.05 — trading 14.4% below its estimated fair value. The current Debt-to-EBITDA is 11.37, which is 59% above median its 10-year median of 7.17 and 947.9% above the Software industry median of 1.09. Nextdc's overall GF Score™ is 86/100 with 5 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 Nextdc (ASX:NXT), the current Debt-to-EBITDA is 11.37 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 Nextdc (ASX:NXT) Overvalued in 2026?
Based on GuruFocus' analysis, Nextdc stock appears to be undervalued.
The current stock price of A$13.05 is trading 14.4% below its estimated GF Value™ of A$15.24.
GuruFocus considers Nextdc to be Modestly Undervalued.
Key valuation signals for ASX:NXT:
Debt-to-EBITDA: 11.37 (59% above median its 10-year median of 7.17)
GF Value™: A$15.24 vs. price of A$13.05 (14.4% below fair value)
Industry Position: 947.9% above the Software median (#1621 of 1716)
No single metric tells the full story. See the ASX:NXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NextDC operates 17 data centers in Australian cities with a focus on co-location and interconnection between enterprises, global cloud, and ICT providers and telecommunication networks. It has another 2 data centers in Asia and 13 data centers in development or planning stage in Australia, Asia, and New Zealand. NextDC provides physical space, cooling, power, and security services and offers optional technical and project management support. The company's tenants store their servers within the data center and can connect to each other, to and between global public cloud providers and telecommunication network providers via physical and virtual connections. Co-location services allow enterprises to enhance security of data transmission and reduce latency.
86GF Score
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