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WatercoASX:WAT +1.00%79 Debt-to-EBITDA is 2.44 as of Dec. 2025, which is 36% below its 10-year median of 3.82. GuruFocus rates ASX:WAT with a GF Score™ of 79/100 and a GF Value™ of A$7.73 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,330 Industrial Products companies, Waterco ranks worse than 64.03% 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 Waterco's Debt-to-EBITDA or its related term are showing as below:
ASX:WAT'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.94 Med: 3.82 Max: 7.21
Current: 2.86
During the past 13 years, the highest Debt-to-EBITDA Ratio of Waterco was 7.21. The lowest was 0.94. And the median was 3.82.
ASX:WAT's Debt-to-EBITDA is ranked worse than 64.03% of 2330
companies
in the Industrial Products industry
Industry Median: 1.7
vs ASX:WAT: 2.86
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.
Waterco Debt-to-EBITDA Related Terms
Waterco Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Waterco'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:WAT vs VLTO, ZWS, CECO: Debt-to-EBITDA Comparison
For the Pollution & Treatment Controls subindustry, Waterco'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.
Waterco Debt-to-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Waterco's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Waterco'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.
Waterco (ASX:WAT) has a Debt-to-EBITDA of 2.44 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 Waterco. This is 36% below median its historical median of 3.82. Over the past decade, Waterco's Debt-to-EBITDA has ranged from 0.94 to 7.21. According to the industry distribution chart, Waterco ranks #1492 out of 2330 companies in the Industrial Products industry, placing it in the top 64%.
Is Waterco's Debt-to-EBITDA too high?
Waterco's current Debt-to-EBITDA of 2.44 is 36% below median its 10-year median of 3.82. Over the past 10 years, this metric has ranged from a low of 0.94 to a high of 7.21. The Industrial Products industry median Debt-to-EBITDA is 1.70. Waterco's value of 2.44 is 43.5% above this industry median. Based on the distribution chart, Waterco ranks #1492 out of 2330 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Waterco has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Waterco's Debt-to-EBITDA compare to VLTO and ZWS?
According to the Industrial Products industry distribution chart, Waterco ranks #1492 out of 2330 companies for Debt-to-EBITDA. This places Waterco in the lower half of its industry. The industry median Debt-to-EBITDA is 1.70. Waterco's value of 2.44 is 43.5% above this benchmark. Historically, Waterco's own Debt-to-EBITDA has ranged from 0.94 to 7.21 over the past decade. While the company's 10-year median is 3.82 vs. the industry median of 1.70, Waterco 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 an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.70, based on 2,330 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. Waterco's current Debt-to-EBITDA of 2.44 is 43.5% 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 Waterco. For the Industrial Products industry, the median Debt-to-EBITDA is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waterco's current Debt-to-EBITDA is 2.44, which is 36% below median its own 10-year median of 3.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waterco stock overvalued right now?
Based on GuruFocus' analysis, Waterco (ASX:WAT) is currently considered Significantly Undervalued. The stock's GF Value™ is A$7.73, compared to a current price of A$5.05 — trading 34.7% below its estimated fair value. The current Debt-to-EBITDA is 2.44, which is 36% below median its 10-year median of 3.82 and 43.5% above the Industrial Products industry median of 1.70. Waterco's overall GF Score™ is 79/100 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 Waterco (ASX:WAT), the current Debt-to-EBITDA is 2.44 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 Waterco (ASX:WAT) Overvalued in 2026?
Based on GuruFocus' analysis, Waterco stock appears to be undervalued.
The current stock price of A$5.05 is trading 34.7% below its estimated GF Value™ of A$7.73.
GuruFocus considers Waterco to be Significantly Undervalued.
Key valuation signals for ASX:WAT:
Debt-to-EBITDA: 2.44 (36% below median its 10-year median of 3.82)
GF Value™: A$7.73 vs. price of A$5.05 (34.7% below fair value)
Industry Position: 43.5% above the Industrial Products median (#1492 of 2330)
No single metric tells the full story. See the ASX:WAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Waterco Ltd designs, manufactures, and distributes filtration and sanitisation products for swimming pools, spas, aquaculture, and water purification sectors. The company serves residential, commercial, and industrial markets in various countries. Waterco operates manufacturing and R&D facilities in Australia, New Zealand, Malaysia, China, and other countries. It also franchises Swimart, a pool and spa retail network in Australia and New Zealand, and is the exclusive distributor of Zane Solar Pool Heating systems. Waterco's product range includes pool equipment, water treatment systems, chemicals, and solar heating solutions. The company generates revenue predominantly through the sales of pool and spa equipment, water treatment systems, and franchising operations.
79GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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