Nortel Inversora (BUE:NORT6) Debt-to-EBITDA : 0.51 (As of Sep. 2017) — 50% Above Median

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What is Nortel Inversora Debt-to-EBITDA?

Nortel Inversora BUE:NORT6 Debt-to-EBITDA is 0.51 as of Sep. 2017, which is 50% above its 10-year median of 0.34. The stock has 9 warning signs investors should review.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Nortel Inversora's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2017 was ARS1,461 Mil. Nortel Inversora's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2017 was ARS8,995 Mil. Nortel Inversora's annualized EBITDA for the quarter that ended in Sep. 2017 was ARS20,720 Mil. Nortel Inversora's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2017 was 0.50.

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 Nortel Inversora's Debt-to-EBITDA or its related term are showing as below:

BUE:NORT6' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.02   Med: 0.34   Max: 1.26
Current: 0.52

During the past 13 years, the highest Debt-to-EBITDA Ratio of Nortel Inversora was 1.26. The lowest was 0.02. And the median was 0.34.

BUE:NORT6's Debt-to-EBITDA is not ranked
in the Telecommunication Services industry.
Industry Median: 1.84 vs BUE:NORT6: 0.52

Nortel Inversora  (BUE:NORT6) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

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.


Nortel Inversora Debt-to-EBITDA Related Terms


Nortel Inversora Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Nortel Inversora'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.

Nortel Inversora Debt-to-EBITDA Chart

Nortel Inversora Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.02 0.03 0.05 0.46 0.86

Nortel Inversora Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.62 0.74 0.46 0.48 0.51

BUE:NORT6 vs GLIBA, TDCAF: Debt-to-EBITDA Comparison

For the Telecom Services subindustry, Nortel Inversora'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.


Nortel Inversora Debt-to-EBITDA vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Nortel Inversora's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Nortel Inversora's Debt-to-EBITDA falls into.



Nortel Inversora Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Nortel Inversora's Debt-to-EBITDA for the fiscal year that ended in Dec. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(3114 + 8646) / 13684
=0.86

Nortel Inversora's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2017 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1461 + 8995) / 20720
=0.50

* 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 (Sep. 2017) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.51 mean?
Nortel Inversora (BUE:NORT6) has a Debt-to-EBITDA of 0.51 as of Sep. 2017. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Nortel Inversora. This is 50% above median its historical median of 0.34. Over the past decade, Nortel Inversora's Debt-to-EBITDA has ranged from 0.02 to 1.26.
Is Nortel Inversora's Debt-to-EBITDA too high?
Nortel Inversora's current Debt-to-EBITDA of 0.51 is 50% above median its 10-year median of 0.34. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 1.26. The Telecommunication Services industry median Debt-to-EBITDA is 1.84. Nortel Inversora's value of 0.51 is 72.3% below this industry median.
How does Nortel Inversora's Debt-to-EBITDA compare to GLIBA and TDCAF?
Nortel Inversora's Debt-to-EBITDA of 0.51 can be compared against companies in the Telecommunication Services industry. The industry median Debt-to-EBITDA is 1.84. Nortel Inversora's value of 0.51 is 72.3% below this benchmark. Historically, Nortel Inversora's own Debt-to-EBITDA has ranged from 0.02 to 1.26 over the past decade. While the company's 10-year median is 0.34 vs. the industry median of 1.84, Nortel Inversora has consistently been below 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 Telecommunication Services company?
The median Debt-to-EBITDA among Telecommunication Services companies is 1.84, based on 303 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. Nortel Inversora's current Debt-to-EBITDA of 0.51 is 72.3% 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 Nortel Inversora. For the Telecommunication Services industry, the median Debt-to-EBITDA is 1.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nortel Inversora's current Debt-to-EBITDA is 0.51, which is 50% above median its own 10-year median of 0.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nortel Inversora stock overvalued right now?
Nortel Inversora (BUE:NORT6) has a current Debt-to-EBITDA of 0.51. The current Debt-to-EBITDA is 0.51, which is 50% above median its 10-year median of 0.34 and 72.3% below the Telecommunication Services industry median of 1.84. 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 Nortel Inversora (BUE:NORT6), the current Debt-to-EBITDA is 0.51 as of Sep. 2017. 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.

Nortel Inversora Business Description

Nortel Inversora SA is a holding company. The company provides fixed-line public telecommunications services and basic telephone services. Nortel operates through the following segments: Fixed Services; Personal Mobile Services; and Nucleo Mobile Services. The Fixed Services division provides a local area, national long-distance and international communications, supplementary services, data transmission, internet services, IT solution outsourcing and sales of equipment. Personal Mobile Services and Nucleo Mobile Services division offerings include voice communications, high-speed mobile internet content and applications download, multimedia messaging services, among others; and sale of mobile communication devices.