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 Azure Power Global's Debt-to-EBITDA or its related term are showing as below:
AZREF's Debt-to-EBITDA is not ranked *
in the Utilities - Independent Power Producers industry.
Industry Median: 4.535 * Ranked among companies with meaningful Debt-to-EBITDA only.
Azure Power Global (OTCPK:AZREF) Debt-to-EBITDA Explanation
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.
Azure Power Global Debt-to-EBITDA Related Terms
Azure Power Global Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Azure Power Global'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.
AZREF vs SAFX, VGAS, STEM: Debt-to-EBITDA Comparison
For the Utilities - Renewable subindustry, Azure Power Global'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.
Azure Power Global Debt-to-EBITDA vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Azure Power Global's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Azure Power Global'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 one times the quarterly (Mar. 2024) EBITDA data.
Azure Power Global (AZREF) has a Debt-to-EBITDA of 9.53 as of Mar. 2024. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Azure Power Global.
Is Azure Power Global's Debt-to-EBITDA too high?
Azure Power Global's current Debt-to-EBITDA is 9.53. The Utilities - Independent Power Producers industry median Debt-to-EBITDA is 4.54. Azure Power Global's value of 9.53 is 110.1% above this industry median. Overall, Azure Power Global has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Azure Power Global's Debt-to-EBITDA compare to SAFX and VGAS?
Azure Power Global's Debt-to-EBITDA of 9.53 can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Debt-to-EBITDA is 4.54. Azure Power Global's value of 9.53 is 110.1% 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 an Utilities - Independent Power Producers company?
The median Debt-to-EBITDA among Utilities - Independent Power Producers companies is 4.54, based on 338 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. Azure Power Global's current Debt-to-EBITDA of 9.53 is 110.1% 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 Azure Power Global. For the Utilities - Independent Power Producers industry, the median Debt-to-EBITDA is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azure Power Global's current Debt-to-EBITDA is 9.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azure Power Global stock overvalued right now?
Azure Power Global (AZREF) has a current Debt-to-EBITDA of 9.53. The current Debt-to-EBITDA is 9.53 and 110.1% above the Utilities - Independent Power Producers industry median of 4.54. Azure Power Global's overall GF Score™ is 12/100. 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 Azure Power Global (AZREF), the current Debt-to-EBITDA is 9.53 as of Mar. 2024. 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.
Azure Power Global Ltd is a utility-scale renewable energy project developer and operator. It is engaged in the development, construction, ownership, operation, maintenance, and management of renewable energy assets based on long-term contracts (Power Purchase Agreements or PPA) with Indian Government energy distribution companies, as well as other Indian non-governmental energy distribution companies and commercial customers.
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