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Builders FirstSourceBLDR +1.85%81 Debt-to-EBITDA is 8.02 as of Mar. 2026, which is 162% above its 10-year median of 3.06. GuruFocus rates BLDR with a GF Score™ of 81/100 and a GF Value™ of $133.73 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 1,405 Construction companies, Builders FirstSource ranks worse than 70.53% 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 Builders FirstSource's Debt-to-EBITDA or its related term are showing as below:
BLDR'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.82 Med: 3.06 Max: 5.21
Current: 4.36
During the past 13 years, the highest Debt-to-EBITDA Ratio of Builders FirstSource was 5.21. The lowest was 0.82. And the median was 3.06.
BLDR's Debt-to-EBITDA is ranked worse than 70.53% of 1405
companies
in the Construction industry
Industry Median: 2.15
vs BLDR: 4.36
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.
Builders FirstSource Debt-to-EBITDA Related Terms
Builders FirstSource Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Builders FirstSource'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.
For the Building Products & Equipment subindustry, Builders FirstSource'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.
Builders FirstSource Debt-to-EBITDA vs Construction Industry
For the Construction industry and Industrials sector, Builders FirstSource's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Builders FirstSource'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 four times the quarterly (Mar. 2026) EBITDA data.
Builders FirstSource (BLDR) has a Debt-to-EBITDA of 8.02 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 Builders FirstSource. This is 162% above median its historical median of 3.06. Over the past decade, Builders FirstSource's Debt-to-EBITDA has ranged from 0.82 to 5.21. According to the industry distribution chart, Builders FirstSource ranks #991 out of 1405 companies in the Construction industry, placing it in the top 70.5%.
Is Builders FirstSource's Debt-to-EBITDA too high?
Builders FirstSource's current Debt-to-EBITDA of 8.02 is 162% above median its 10-year median of 3.06. Over the past 10 years, this metric has ranged from a low of 0.82 to a high of 5.21. The Construction industry median Debt-to-EBITDA is 2.15. Builders FirstSource's value of 8.02 is 273% above this industry median. Based on the distribution chart, Builders FirstSource ranks #991 out of 1405 companies in the Construction industry, which is below the industry midpoint. Overall, Builders FirstSource has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Builders FirstSource's Debt-to-EBITDA compare to AAON and OC?
According to the Construction industry distribution chart, Builders FirstSource ranks #991 out of 1405 companies for Debt-to-EBITDA. This places Builders FirstSource in the lower half of its industry. The industry median Debt-to-EBITDA is 2.15. Builders FirstSource's value of 8.02 is 273% above this benchmark. Historically, Builders FirstSource's own Debt-to-EBITDA has ranged from 0.82 to 5.21 over the past decade. While the company's 10-year median is 3.06 vs. the industry median of 2.15, Builders FirstSource 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 Construction company?
The median Debt-to-EBITDA among Construction companies is 2.15, based on 1,405 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. Builders FirstSource's current Debt-to-EBITDA of 8.02 is 273% 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 Builders FirstSource. For the Construction industry, the median Debt-to-EBITDA is 2.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Builders FirstSource's current Debt-to-EBITDA is 8.02, which is 162% above median its own 10-year median of 3.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Builders FirstSource stock overvalued right now?
Based on GuruFocus' analysis, Builders FirstSource (BLDR) is currently considered Significantly Undervalued. The stock's GF Value™ is $133.73, compared to a current price of $71.03 — trading 46.9% below its estimated fair value. The current Debt-to-EBITDA is 8.02, which is 162% above median its 10-year median of 3.06 and 273% above the Construction industry median of 2.15. Builders FirstSource's overall GF Score™ is 81/100 with 7 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 Builders FirstSource (BLDR), the current Debt-to-EBITDA is 8.02 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.
Is Builders FirstSource (BLDR) Overvalued in 2026?
Based on GuruFocus' analysis, Builders FirstSource stock appears to be undervalued.
The current stock price of $71.03 is trading 46.9% below its estimated GF Value™ of $133.73.
GuruFocus considers Builders FirstSource to be Significantly Undervalued.
Key valuation signals for BLDR:
Debt-to-EBITDA: 8.02 (162% above median its 10-year median of 3.06)
GF Value™: $133.73 vs. price of $71.03 (46.9% below fair value)
Industry Position: 273% above the Construction median (#991 of 1405)
No single metric tells the full story. See the BLDR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Builders FirstSource Inc is a manufacturer and supplier of building materials. The company offers structural and related building products such as factory-built roof and floor trusses, wall panels and stairs, vinyl windows, custom millwork and trim, and engineered wood. The products can be designed for each home individually and are installed by Builders FirstSource. The company's construction-related services include professional installation, turn-key framing, and shell construction. Builders FirstSource's customers range from large production builders to small custom homebuilders.
81GF Score
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