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Clearwater Analytics HoldingsCWAN 60 Debt-to-EBITDA is 5.58 as of Mar. 2026, which is 230% above its 10-year median of 1.69. GuruFocus rates CWAN with a GF Score™ of 60/100 and a GF Value™ of $32.39 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,725 Software companies, Clearwater Analytics Holdings ranks worse than 91.54% 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 Clearwater Analytics Holdings's Debt-to-EBITDA or its related term are showing as below:
CWAN'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -23.42 Med: 1.69 Max: 10.55
Current: 8
During the past 7 years, the highest Debt-to-EBITDA Ratio of Clearwater Analytics Holdings was 10.55. The lowest was -23.42. And the median was 1.69.
CWAN's Debt-to-EBITDA is ranked worse than 91.54% of 1725
companies
in the Software industry
Industry Median: 1.1
vs CWAN: 8.00
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.
Clearwater Analytics Holdings Debt-to-EBITDA Related Terms
Clearwater Analytics Holdings 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.
CWAN vs IDCC, CHYM, TTAN: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Clearwater Analytics Holdings'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.
Clearwater Analytics Holdings Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Clearwater Analytics Holdings's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Clearwater Analytics Holdings'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.
Clearwater Analytics Holdings (CWAN) has a Debt-to-EBITDA of 5.58 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 Clearwater Analytics Holdings. This is 230% above median its historical median of 1.69. According to the industry distribution chart, Clearwater Analytics Holdings ranks #1579 out of 1725 companies in the Software industry, placing it in the top 91.5%.
Is Clearwater Analytics Holdings' Debt-to-EBITDA too high?
Clearwater Analytics Holdings' current Debt-to-EBITDA of 5.58 is 230% above median its 10-year median of 1.69. The Software industry median Debt-to-EBITDA is 1.10. Clearwater Analytics Holdings' value of 5.58 is 407.3% above this industry median. Based on the distribution chart, Clearwater Analytics Holdings ranks #1579 out of 1725 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Clearwater Analytics Holdings has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Clearwater Analytics Holdings' Debt-to-EBITDA compare to IDCC and CHYM?
According to the Software industry distribution chart, Clearwater Analytics Holdings ranks #1579 out of 1725 companies for Debt-to-EBITDA. This places Clearwater Analytics Holdings in the lower half of its industry. The industry median Debt-to-EBITDA is 1.10. Clearwater Analytics Holdings' value of 5.58 is 407.3% above this benchmark. While the company's 10-year median is 1.69 vs. the industry median of 1.10, Clearwater Analytics Holdings 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 1.10, 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. Clearwater Analytics Holdings's current Debt-to-EBITDA of 5.58 is 407.3% 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 Clearwater Analytics Holdings. For the Software industry, the median Debt-to-EBITDA is 1.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clearwater Analytics Holdings's current Debt-to-EBITDA is 5.58, which is 230% above median its own 10-year median of 1.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clearwater Analytics Holdings stock overvalued right now?
Based on GuruFocus' analysis, Clearwater Analytics Holdings (CWAN) is currently considered Modestly Undervalued. The stock's GF Value™ is $32.39, compared to a current price of $24.56 — trading 24.2% below its estimated fair value. The current Debt-to-EBITDA is 5.58, which is 230% above median its 10-year median of 1.69 and 407.3% above the Software industry median of 1.10. Clearwater Analytics Holdings' overall GF Score™ is 60/100 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 Clearwater Analytics Holdings (CWAN), the current Debt-to-EBITDA is 5.58 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 Clearwater Analytics Holdings (CWAN) Overvalued in 2026?
Based on GuruFocus' analysis, Clearwater Analytics Holdings stock appears to be undervalued.
The current stock price of $24.56 is trading 24.2% below its estimated GF Value™ of $32.39.
GuruFocus considers Clearwater Analytics Holdings to be Modestly Undervalued.
Key valuation signals for CWAN:
Debt-to-EBITDA: 5.58 (230% above median its 10-year median of 1.69)
GF Value™: $32.39 vs. price of $24.56 (24.2% below fair value)
Industry Position: 407.3% above the Software median (#1579 of 1725)
No single metric tells the full story. See the CWAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clearwater Analytics describes its mission as aiming to be the world's most trusted and comprehensive technology platform for the entire investment cycle. Clearwater has historically focused on back-office functions such as investment accounting, but with acquisitions such Enfusion, Beacon, and Bistro, the firm has broadened its focus with front-office and middle-office capabilities. Clearwater primarily serves insurance companies, asset managers, hedge funds, and corporate treasuries. Pro forma for Enfusion, about 76% of Clearwater's revenue is generated in the US.
60GF Score
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