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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 Check Point Software Technologies's Debt-to-EBITDA or its related term are showing as below:
CHKP'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.9 Med: 1.9 Max: 1.98
Current: 1.98
During the past 13 years, the highest Debt-to-EBITDA Ratio of Check Point Software Technologies was 1.98. The lowest was 1.90. And the median was 1.90.
CHKP's Debt-to-EBITDA is ranked worse than 63.77% of 1725
companies
in the Software industry
Industry Median: 1.09
vs CHKP: 1.98
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.
Check Point Software Technologies Debt-to-EBITDA Related Terms
Check Point Software Technologies Debt-to-EBITDA Historical Data
* 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.
Check Point Software Technologies Debt-to-EBITDA Chart
CHKP vs GDDY, DOCN, NTNX: Debt-to-EBITDA Comparison
For the Software - Infrastructure subindustry, Check Point Software Technologies'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.
Check Point Software Technologies Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Check Point Software Technologies's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Check Point Software Technologies'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 (Jun. 2026) EBITDA data.
Check Point Software Technologies (CHKP) has a Debt-to-EBITDA of 2.42 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Check Point Software Technologies. This is 27% above median its historical median of 1.90. Over the past decade, Check Point Software Technologies' Debt-to-EBITDA has ranged from 1.90 to 1.98. According to the industry distribution chart, Check Point Software Technologies ranks #1100 out of 1725 companies in the Software industry, placing it in the top 63.8%.
Is Check Point Software Technologies' Debt-to-EBITDA too high?
Check Point Software Technologies' current Debt-to-EBITDA of 2.42 is 27% above median its 10-year median of 1.90. Over the past 10 years, this metric has ranged from a low of 1.90 to a high of 1.98. The Software industry median Debt-to-EBITDA is 1.09. Check Point Software Technologies' value of 2.42 is 122% above this industry median. Based on the distribution chart, Check Point Software Technologies ranks #1100 out of 1725 companies in the Software industry, which is below the industry midpoint. Overall, Check Point Software Technologies has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Check Point Software Technologies' Debt-to-EBITDA compare to GDDY and DOCN?
According to the Software industry distribution chart, Check Point Software Technologies ranks #1100 out of 1725 companies for Debt-to-EBITDA. This places Check Point Software Technologies in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. Check Point Software Technologies' value of 2.42 is 122% above this benchmark. Historically, Check Point Software Technologies' own Debt-to-EBITDA has ranged from 1.90 to 1.98 over the past decade. While the company's 10-year median is 1.90 vs. the industry median of 1.09, Check Point Software Technologies 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 Software company?
The median Debt-to-EBITDA among Software companies is 1.09, based on 1,725 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. Check Point Software Technologies's current Debt-to-EBITDA of 2.42 is 122% 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 Check Point Software Technologies. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Check Point Software Technologies's current Debt-to-EBITDA is 2.42, which is 27% above median its own 10-year median of 1.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Check Point Software Technologies stock overvalued right now?
Based on GuruFocus' analysis, Check Point Software Technologies (CHKP) is currently considered Significantly Undervalued. The stock's GF Value™ is $207.26, compared to a current price of $123.57 — trading 40.4% below its estimated fair value. The current Debt-to-EBITDA is 2.42, which is 27% above median its 10-year median of 1.90 and 122% above the Software industry median of 1.09. Check Point Software Technologies' overall GF Score™ is 80/100 with 3 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 Check Point Software Technologies (CHKP), the current Debt-to-EBITDA is 2.42 as of Jun. 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 Check Point Software Technologies (CHKP) Overvalued in 2026?
Based on GuruFocus' analysis, Check Point Software Technologies stock appears to be undervalued.
The current stock price of $123.57 is trading 40.4% below its estimated GF Value™ of $207.26.
GuruFocus considers Check Point Software Technologies to be Significantly Undervalued.
Key valuation signals for CHKP:
Debt-to-EBITDA: 2.42 (27% above median its 10-year median of 1.90)
GF Value™: $207.26 vs. price of $123.57 (40.4% below fair value)
Industry Position: 122% above the Software median (#1100 of 1725)
No single metric tells the full story. See the CHKP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Check Point Software Technologies is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud, and mobile security in addition to security management. Check Point, a software specialist, sells to enterprises, businesses, and consumers. Around 50% of revenue is generated in Europe, the Middle East, and Africa, 40% from the Americas, and 10% from the Asia-Pacific region. The firm, based in Tel Aviv, Israel, was founded in 1993 and has about 5,000 employees.
80GF Score
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