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SSECHIX:SSEL +2.79%75 Debt-to-EBITDA is 2.63 as of Mar. 2026, which is 19% below its 10-year median of 3.26. GuruFocus rates CHIX:SSEL with a GF Score™ of 75/100 and a GF Value™ of £16.67 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 450 Utilities - Regulated companies, SSE ranks better than 58.89% 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 SSE's Debt-to-EBITDA or its related term are showing as below:
CHIX:SSEl'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.19 Med: 3.26 Max: 10.71
Current: 3.24
During the past 13 years, the highest Debt-to-EBITDA Ratio of SSE was 10.71. The lowest was 2.19. And the median was 3.26.
CHIX:SSEl's Debt-to-EBITDA is ranked better than 58.89% of 450
companies
in the Utilities - Regulated industry
Industry Median: 3.99
vs CHIX:SSEl: 3.24
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.
SSE Debt-to-EBITDA Related Terms
SSE Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for SSE'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 Utilities - Diversified subindustry, SSE'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.
SSE Debt-to-EBITDA vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, SSE's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where SSE'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.
SSE (CHIX:SSEL) has a Debt-to-EBITDA of 2.63 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 SSE. This is 19% below median its historical median of 3.26. Over the past decade, SSE's Debt-to-EBITDA has ranged from 2.19 to 10.71. According to the industry distribution chart, SSE ranks #185 out of 450 companies in the Utilities - Regulated industry, placing it in the top 41.1%.
Is SSE's Debt-to-EBITDA too high?
SSE's current Debt-to-EBITDA of 2.63 is 19% below median its 10-year median of 3.26. Over the past 10 years, this metric has ranged from a low of 2.19 to a high of 10.71. The Utilities - Regulated industry median Debt-to-EBITDA is 3.99. SSE's value of 2.63 is 34.1% below this industry median. Based on the distribution chart, SSE ranks #185 out of 450 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, SSE has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SSE's Debt-to-EBITDA compare to SRE and AES?
According to the Utilities - Regulated industry distribution chart, SSE ranks #185 out of 450 companies for Debt-to-EBITDA. This puts SSE in the upper half of its industry. The industry median Debt-to-EBITDA is 3.99. SSE's value of 2.63 is 34.1% below this benchmark. Historically, SSE's own Debt-to-EBITDA has ranged from 2.19 to 10.71 over the past decade. While the company's 10-year median is 3.26 vs. the industry median of 3.99, SSE 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 an Utilities - Regulated company?
The median Debt-to-EBITDA among Utilities - Regulated companies is 3.99, based on 450 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. SSE's current Debt-to-EBITDA of 2.63 is 34.1% 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 SSE. For the Utilities - Regulated industry, the median Debt-to-EBITDA is 3.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SSE's current Debt-to-EBITDA is 2.63, which is 19% below median its own 10-year median of 3.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SSE stock overvalued right now?
Based on GuruFocus' analysis, SSE (CHIX:SSEL) is currently considered Significantly Overvalued. The stock's GF Value™ is £16.67, compared to a current price of £25.08 — trading 50.4% above its estimated fair value. The current Debt-to-EBITDA is 2.63, which is 19% below median its 10-year median of 3.26 and 34.1% below the Utilities - Regulated industry median of 3.99. SSE's overall GF Score™ is 75/100 with 8 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 SSE (CHIX:SSEL), the current Debt-to-EBITDA is 2.63 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 SSE (CHIX:SSEL) Overvalued in 2026?
Based on GuruFocus' analysis, SSE stock appears to be overvalued.
The current stock price of £25.08 is trading 50.4% above its estimated GF Value™ of £16.67.
GuruFocus considers SSE to be Significantly Overvalued.
Key valuation signals for CHIX:SSEL:
Debt-to-EBITDA: 2.63 (19% below median its 10-year median of 3.26)
GF Value™: £16.67 vs. price of £25.08 (50.4% above fair value)
Industry Position: 34.1% below the Utilities - Regulated median (#185 of 450)
No single metric tells the full story. See the CHIX:SSEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SSE is an integrated utility based in the United Kingdom owning and operating renewables and gas-fired power plants and electricity transmission and distribution networks. The firm is also involved in smaller related businesses such as gas storage and energy services.
75GF Score
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