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AO WorldCHIX:AOL +0.10%74 Debt-to-EBITDA is 0.66 as of Mar. 2026, which is 68% below its 10-year median of 2.07. GuruFocus rates CHIX:AOL with a GF Score™ of 74/100 and a GF Value™ of £1.14 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 903 Retail - Cyclical companies, AO World ranks better than 82.72% 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 AO World's Debt-to-EBITDA or its related term are showing as below:
CHIX:AOl'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -16.78 Med: 2.07 Max: 174
Current: 0.77
During the past 13 years, the highest Debt-to-EBITDA Ratio of AO World was 174.00. The lowest was -16.78. And the median was 2.07.
CHIX:AOl's Debt-to-EBITDA is ranked better than 82.72% of 903
companies
in the Retail - Cyclical industry
Industry Median: 2.36
vs CHIX:AOl: 0.77
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.
AO World Debt-to-EBITDA Related Terms
AO World Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for AO World'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.
CHIX:AOL vs CASY, WSM, ULTA: Debt-to-EBITDA Comparison
For the Specialty Retail subindustry, AO World'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.
AO World Debt-to-EBITDA vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, AO World's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where AO World'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 (Mar. 2026) EBITDA data.
AO World (CHIX:AOL) has a Debt-to-EBITDA of 0.66 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 AO World. This is 68% below median its historical median of 2.07. According to the industry distribution chart, AO World ranks #156 out of 903 companies in the Retail - Cyclical industry, placing it in the top 17.3%.
Is AO World's Debt-to-EBITDA too high?
AO World's current Debt-to-EBITDA of 0.66 is 68% below median its 10-year median of 2.07. The Retail - Cyclical industry median Debt-to-EBITDA is 2.36. AO World's value of 0.66 is 72% below this industry median. Based on the distribution chart, AO World ranks #156 out of 903 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, AO World has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AO World's Debt-to-EBITDA compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, AO World ranks #156 out of 903 companies for Debt-to-EBITDA. This places AO World in the top 17% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 2.36. AO World's value of 0.66 is 72% below this benchmark. While the company's 10-year median is 2.07 vs. the industry median of 2.36, AO World 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 Retail - Cyclical company?
The median Debt-to-EBITDA among Retail - Cyclical companies is 2.36, based on 903 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. AO World's current Debt-to-EBITDA of 0.66 is 72% 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 AO World. For the Retail - Cyclical industry, the median Debt-to-EBITDA is 2.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AO World's current Debt-to-EBITDA is 0.66, which is 68% below median its own 10-year median of 2.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AO World stock overvalued right now?
Based on GuruFocus' analysis, AO World (CHIX:AOL) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.14, compared to a current price of £0.97 — trading 14.7% below its estimated fair value. The current Debt-to-EBITDA is 0.66, which is 68% below median its 10-year median of 2.07 and 72% below the Retail - Cyclical industry median of 2.36. AO World's overall GF Score™ is 74/100 with 1 warning sign 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 AO World (CHIX:AOL), the current Debt-to-EBITDA is 0.66 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 AO World (CHIX:AOL) Overvalued in 2026?
Based on GuruFocus' analysis, AO World stock appears to be undervalued.
The current stock price of £0.97 is trading 14.7% below its estimated GF Value™ of £1.14.
GuruFocus considers AO World to be Modestly Undervalued.
Key valuation signals for CHIX:AOL:
Debt-to-EBITDA: 0.66 (68% below median its 10-year median of 2.07)
GF Value™: £1.14 vs. price of £0.97 (14.7% below fair value)
Industry Position: 72% below the Retail - Cyclical median (#156 of 903)
No single metric tells the full story. See the CHIX:AOL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AO World PLC is a European retailer that specializes in electrical products. The company's primary markets include essential domestic appliances, small domestic appliances, and audiovisual equipment. Within the domestic appliances category, AO collaborates with suppliers such as Fisher & Paykel, Daewoo, and Amica. The small domestic appliances segment encompasses a variety of appliances including food preparation appliances, kitchen appliances, and floorcare devices. Additionally, the company offers ancillary services to customers in the UK. AO's main geographical markets are the UK, Germany, and the Netherlands.
74GF Score
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