DP WorldDFM:DPW Debt-to-EBITDA is 5.07 as of Dec. 2019, which is 40% above its 10-year median of 3.63. The stock has 9 warning signs investors should review.
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 DP World's Debt-to-EBITDA or its related term are showing as below:
DFM:DPW'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.88 Med: 3.63 Max: 5.82
Current: 5.13
During the past 13 years, the highest Debt-to-EBITDA Ratio of DP World was 5.82. The lowest was 2.88. And the median was 3.63.
DFM:DPW's Debt-to-EBITDA is not ranked
in the Transportation industry.
Industry Median: 2.63
vs DFM:DPW: 5.13
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.
DP World Debt-to-EBITDA Related Terms
DP World Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for DP 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.
For the Marine Shipping subindustry, DP 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.
DP World Debt-to-EBITDA vs Transportation Industry
For the Transportation industry and Industrials sector, DP World's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where DP 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 (Dec. 2019) EBITDA data.
DP World (DFM:DPW) has a Debt-to-EBITDA of 5.07 as of Dec. 2019. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on DP World. This is 40% above median its historical median of 3.63. Over the past decade, DP World's Debt-to-EBITDA has ranged from 2.88 to 5.82.
Is DP World's Debt-to-EBITDA too high?
DP World's current Debt-to-EBITDA of 5.07 is 40% above median its 10-year median of 3.63. Over the past 10 years, this metric has ranged from a low of 2.88 to a high of 5.82. The Transportation industry median Debt-to-EBITDA is 2.63. DP World's value of 5.07 is 92.8% above this industry median.
How does DP World's Debt-to-EBITDA compare to KEX?
DP World's Debt-to-EBITDA of 5.07 can be compared against companies in the Transportation industry. The industry median Debt-to-EBITDA is 2.63. DP World's value of 5.07 is 92.8% above this benchmark. Historically, DP World's own Debt-to-EBITDA has ranged from 2.88 to 5.82 over the past decade. While the company's 10-year median is 3.63 vs. the industry median of 2.63, DP World 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 Transportation company?
The median Debt-to-EBITDA among Transportation companies is 2.63, based on 867 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. DP World's current Debt-to-EBITDA of 5.07 is 92.8% 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 DP World. For the Transportation industry, the median Debt-to-EBITDA is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DP World's current Debt-to-EBITDA is 5.07, which is 40% above median its own 10-year median of 3.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DP World stock overvalued right now?
DP World (DFM:DPW) has a current Debt-to-EBITDA of 5.07. The current Debt-to-EBITDA is 5.07, which is 40% above median its 10-year median of 3.63 and 92.8% above the Transportation industry median of 2.63. 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 DP World (DFM:DPW), the current Debt-to-EBITDA is 5.07 as of Dec. 2019. 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.
DP World PLC is a transportation and logistics company, domiciled in the United Arab Emirates. The company develops and manages international marine and inland terminal facilities, operates industrial parks and economic zones, and provides logistics services. DP World organises itself into three geographical segments: Asia-Pacific and the Indian subcontinent; Australia and Americas; and the Middle East, Europe, and Africa. The company derives the vast majority of revenue from the Middle East, Europe, and Africa.
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