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ReadCloudASX:RCL -5.71% Debt-to-EBITDA is 0.04 as of Mar. 2026. The stock has 3 warning signs investors should review. Among 1,715 Software companies, ReadCloud ranks better than 76.15% 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 ReadCloud's Debt-to-EBITDA or its related term are showing as below:
ASX:RCL'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -4.23 Med: -0.47 Max: 4.12
Current: 0.26
During the past 9 years, the highest Debt-to-EBITDA Ratio of ReadCloud was 4.12. The lowest was -4.23. And the median was -0.47.
ASX:RCL's Debt-to-EBITDA is ranked better than 76.15% of 1715
companies
in the Software industry
Industry Median: 1.09
vs ASX:RCL: 0.26
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.
ReadCloud Debt-to-EBITDA Related Terms
ReadCloud Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for ReadCloud'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:RCL vs UBER, SHOP, CRM: Debt-to-EBITDA Comparison
For the Software - Application subindustry, ReadCloud'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.
ReadCloud Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, ReadCloud's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where ReadCloud'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.
ReadCloud (ASX:RCL) has a Debt-to-EBITDA of 0.04 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 ReadCloud. According to the industry distribution chart, ReadCloud ranks #409 out of 1715 companies in the Software industry, placing it in the top 23.8%.
Is ReadCloud's Debt-to-EBITDA too high?
ReadCloud's current Debt-to-EBITDA is 0.04. The Software industry median Debt-to-EBITDA is 1.09. ReadCloud's value of 0.04 is 96.3% below this industry median. Based on the distribution chart, ReadCloud ranks #409 out of 1715 companies in the Software industry, which is in the top quartile — a strong position relative to peers.
How does ReadCloud's Debt-to-EBITDA compare to UBER and SHOP?
According to the Software industry distribution chart, ReadCloud ranks #409 out of 1715 companies for Debt-to-EBITDA. This places ReadCloud in the top 24% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.09. ReadCloud's value of 0.04 is 96.3% below 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 1.09, based on 1,715 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. ReadCloud's current Debt-to-EBITDA of 0.04 is 96.3% 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 ReadCloud. 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. ReadCloud's current Debt-to-EBITDA is 0.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadCloud stock overvalued right now?
Based on GuruFocus' analysis, ReadCloud (ASX:RCL) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.10, compared to a current price of A$0.07 — trading 34% below its estimated fair value. The current Debt-to-EBITDA is 0.04 and 96.3% below the Software industry median of 1.09. 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 ReadCloud (ASX:RCL), the current Debt-to-EBITDA is 0.04 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.
ReadCloud Ltd is an education technology company that offers digital e-learning solutions to secondary schools. The firm operates in two segments: eBook solutions, which is the key revenue driver, and Vocational Education and Training (VET). It provides software solutions, including eBooks, to schools within Australia. In addition, it also provides digital VET course materials and services to schools through its subsidiary Australian Institute of Education and Training Unit Trust, PKY Media Pty Ltd and Ripponlea Institute Pty Ltd, which offers over 40 VET courses and services to schools across Australia.
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