Downer EDIDNERY -8.46%63 Debt-to-EBITDA is 1.97 as of Dec. 2025, which is 29% below its 10-year median of 2.78. GuruFocus rates DNERY with a GF Score™ of 63/100 and a GF Value™ of $3.41. The stock has 7 warning signs investors should review. Among 1,404 Construction companies, Downer EDI ranks better than 50.14% 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 Downer EDI's Debt-to-EBITDA or its related term are showing as below:
DNERY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.22 Med: 2.78 Max: 31.64
Current: 2.17
During the past 13 years, the highest Debt-to-EBITDA Ratio of Downer EDI was 31.64. The lowest was 1.22. And the median was 2.78.
DNERY's Debt-to-EBITDA is ranked better than 50.14% of 1404
companies
in the Construction industry
Industry Median: 2.19
vs DNERY: 2.17
Downer EDI (OTCPK:DNERY) Debt-to-EBITDA Explanation
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.
Downer EDI Debt-to-EBITDA Related Terms
Downer EDI Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Downer EDI'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 Engineering & Construction subindustry, Downer EDI'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.
Downer EDI Debt-to-EBITDA vs Construction Industry
For the Construction industry and Industrials sector, Downer EDI's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Downer EDI'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. 2025) EBITDA data.
Downer EDI (DNERY) has a Debt-to-EBITDA of 1.97 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Downer EDI. This is 29% below median its historical median of 2.78. Over the past decade, Downer EDI's Debt-to-EBITDA has ranged from 1.22 to 31.64. According to the industry distribution chart, Downer EDI ranks #700 out of 1404 companies in the Construction industry, placing it in the top 49.9%.
Is Downer EDI's Debt-to-EBITDA too high?
Downer EDI's current Debt-to-EBITDA of 1.97 is 29% below median its 10-year median of 2.78. Over the past 10 years, this metric has ranged from a low of 1.22 to a high of 31.64. The Construction industry median Debt-to-EBITDA is 2.19. Downer EDI's value of 1.97 is 10% below this industry median. Based on the distribution chart, Downer EDI ranks #700 out of 1404 companies in the Construction industry, which is above the industry midpoint. Overall, Downer EDI has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Downer EDI's Debt-to-EBITDA compare to PWR and FIX?
According to the Construction industry distribution chart, Downer EDI ranks #700 out of 1404 companies for Debt-to-EBITDA. This puts Downer EDI in the upper half of its industry. The industry median Debt-to-EBITDA is 2.19. Downer EDI's value of 1.97 is 10% below this benchmark. Historically, Downer EDI's own Debt-to-EBITDA has ranged from 1.22 to 31.64 over the past decade. While the company's 10-year median is 2.78 vs. the industry median of 2.19, Downer EDI 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 Construction company?
The median Debt-to-EBITDA among Construction companies is 2.19, based on 1,404 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. Downer EDI's current Debt-to-EBITDA of 1.97 is 10% 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 Downer EDI. For the Construction industry, the median Debt-to-EBITDA is 2.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Downer EDI's current Debt-to-EBITDA is 1.97, which is 29% below median its own 10-year median of 2.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Downer EDI stock overvalued right now?
Downer EDI (DNERY) has a current Debt-to-EBITDA of 1.97. The stock's GF Value™ is $3.41, compared to a current price of $5.95 — trading 74.5% above its estimated fair value. The current Debt-to-EBITDA is 1.97, which is 29% below median its 10-year median of 2.78 and 10% below the Construction industry median of 2.19. Downer EDI's overall GF Score™ is 63/100 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 Downer EDI (DNERY), the current Debt-to-EBITDA is 1.97 as of Dec. 2025. 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 Downer EDI (DNERY) Overvalued in 2026?
Based on GuruFocus' analysis, Downer EDI stock appears to be overvalued.
The current stock price of $5.95 is trading 74.5% above its estimated GF Value™ of $3.41.
Key valuation signals for DNERY:
Debt-to-EBITDA: 1.97 (29% below median its 10-year median of 2.78)
GF Value™: $3.41 vs. price of $5.95 (74.5% above fair value)
Industry Position: 10% below the Construction median (#700 of 1404)
No single metric tells the full story. See the DNERY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Downer conducts construction and maintenance in the transport, technology and communications, utilities, rail, and defense segments. The future of Downer is focused on urban services, with mining and higher-risk construction businesses exited. Downer has strong relationships with local and state governments that outsource operational and management activities, ensuring a relatively consistent stream of recurring contract work. The transport segment contributes the majority of earnings.
63GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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