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ReadyTech HoldingsASX:RDY +0.64%73 Debt-to-EBITDA is 1.92 as of Dec. 2025, which is 3% below its 10-year median of 1.97. GuruFocus rates ASX:RDY with a GF Score™ of 73/100 and a GF Value™ of A$3.38 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,735 Software companies, ReadyTech Holdings ranks worse than 61.79% 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 ReadyTech Holdings's Debt-to-EBITDA or its related term are showing as below:
ASX:RDY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.4 Med: 1.97 Max: 4.24
Current: 1.67
During the past 7 years, the highest Debt-to-EBITDA Ratio of ReadyTech Holdings was 4.24. The lowest was 1.40. And the median was 1.97.
ASX:RDY's Debt-to-EBITDA is ranked worse than 61.79% of 1735
companies
in the Software industry
Industry Median: 0.98
vs ASX:RDY: 1.67
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.
ReadyTech Holdings Debt-to-EBITDA Related Terms
ReadyTech Holdings Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for ReadyTech Holdings'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:RDY vs QH, SHOP, UBER: Debt-to-EBITDA Comparison
For the Software - Application subindustry, ReadyTech Holdings'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.
ReadyTech Holdings Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, ReadyTech Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where ReadyTech Holdings'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.
ReadyTech Holdings (ASX:RDY) has a Debt-to-EBITDA of 1.92 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 ReadyTech Holdings. This is near median its historical median of 1.97. Over the past decade, ReadyTech Holdings' Debt-to-EBITDA has ranged from 1.40 to 4.24. According to the industry distribution chart, ReadyTech Holdings ranks #1072 out of 1735 companies in the Software industry, placing it in the top 61.8%.
Is ReadyTech Holdings' Debt-to-EBITDA too high?
ReadyTech Holdings' current Debt-to-EBITDA of 1.92 is near median its 10-year median of 1.97. Over the past 10 years, this metric has ranged from a low of 1.40 to a high of 4.24. The Software industry median Debt-to-EBITDA is 0.98. ReadyTech Holdings' value of 1.92 is 95.9% above this industry median. Based on the distribution chart, ReadyTech Holdings ranks #1072 out of 1735 companies in the Software industry, which is below the industry midpoint. Overall, ReadyTech Holdings has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ReadyTech Holdings' Debt-to-EBITDA compare to QH and SHOP?
According to the Software industry distribution chart, ReadyTech Holdings ranks #1072 out of 1735 companies for Debt-to-EBITDA. This places ReadyTech Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 0.98. ReadyTech Holdings' value of 1.92 is 95.9% above this benchmark. Historically, ReadyTech Holdings' own Debt-to-EBITDA has ranged from 1.40 to 4.24 over the past decade. While the company's 10-year median is 1.97 vs. the industry median of 0.98, ReadyTech Holdings 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 0.98, based on 1,735 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. ReadyTech Holdings's current Debt-to-EBITDA of 1.92 is 95.9% 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 ReadyTech Holdings. For the Software industry, the median Debt-to-EBITDA is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReadyTech Holdings's current Debt-to-EBITDA is 1.92, which is near median its own 10-year median of 1.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadyTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, ReadyTech Holdings (ASX:RDY) is currently considered Possible Value Trap. The stock's GF Value™ is A$3.38, compared to a current price of A$1.58 — trading 53.4% below its estimated fair value. The current Debt-to-EBITDA is 1.92, which is near median its 10-year median of 1.97 and 95.9% above the Software industry median of 0.98. ReadyTech Holdings' overall GF Score™ is 73/100 with 6 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 ReadyTech Holdings (ASX:RDY), the current Debt-to-EBITDA is 1.92 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 ReadyTech Holdings (ASX:RDY) Overvalued in 2026?
Based on GuruFocus' analysis, ReadyTech Holdings stock appears to be undervalued.
The current stock price of A$1.58 is trading 53.4% below its estimated GF Value™ of A$3.38.
GuruFocus considers ReadyTech Holdings to be Possible Value Trap.
Key valuation signals for ASX:RDY:
Debt-to-EBITDA: 1.92 (near median its 10-year median of 1.97)
GF Value™: A$3.38 vs. price of A$1.58 (53.4% below fair value)
Industry Position: 95.9% above the Software median (#1072 of 1735)
No single metric tells the full story. See the ASX:RDY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Government and Justice. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments, and justice departments.
73GF Score
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