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ESCO TechnologiesESE +0.27%87 Debt-to-EBITDA is 0.65 as of Mar. 2026, which is 43% below its 10-year median of 1.15. GuruFocus rates ESE with a GF Score™ of 87/100 and a GF Value™ of $187.73 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,796 Hardware companies, ESCO Technologies ranks better than 71.21% 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 ESCO Technologies's Debt-to-EBITDA or its related term are showing as below:
ESE'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.65 Med: 1.15 Max: 2.35
Current: 0.65
During the past 13 years, the highest Debt-to-EBITDA Ratio of ESCO Technologies was 2.35. The lowest was 0.65. And the median was 1.15.
ESE's Debt-to-EBITDA is ranked better than 71.21% of 1796
companies
in the Hardware industry
Industry Median: 1.715
vs ESE: 0.65
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.
ESCO Technologies Debt-to-EBITDA Related Terms
ESCO Technologies Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for ESCO Technologies'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 Scientific & Technical Instruments subindustry, ESCO 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.
ESCO Technologies Debt-to-EBITDA vs Hardware Industry
For the Hardware industry and Technology sector, ESCO Technologies's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where ESCO 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 (Mar. 2026) EBITDA data.
ESCO Technologies (ESE) has a Debt-to-EBITDA of 0.65 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 ESCO Technologies. This is 43% below median its historical median of 1.15. Over the past decade, ESCO Technologies' Debt-to-EBITDA has ranged from 0.65 to 2.35. According to the industry distribution chart, ESCO Technologies ranks #517 out of 1796 companies in the Hardware industry, placing it in the top 28.8%.
Is ESCO Technologies' Debt-to-EBITDA too high?
ESCO Technologies' current Debt-to-EBITDA of 0.65 is 43% below median its 10-year median of 1.15. Over the past 10 years, this metric has ranged from a low of 0.65 to a high of 2.35. The Hardware industry median Debt-to-EBITDA is 1.72. ESCO Technologies' value of 0.65 is 62.1% below this industry median. Based on the distribution chart, ESCO Technologies ranks #517 out of 1796 companies in the Hardware industry, which is above the industry midpoint. Overall, ESCO Technologies has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ESCO Technologies' Debt-to-EBITDA compare to ST and CGNX?
According to the Hardware industry distribution chart, ESCO Technologies ranks #517 out of 1796 companies for Debt-to-EBITDA. This puts ESCO Technologies in the upper half of its industry. The industry median Debt-to-EBITDA is 1.72. ESCO Technologies' value of 0.65 is 62.1% below this benchmark. Historically, ESCO Technologies' own Debt-to-EBITDA has ranged from 0.65 to 2.35 over the past decade. While the company's 10-year median is 1.15 vs. the industry median of 1.72, ESCO Technologies 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 Hardware company?
The median Debt-to-EBITDA among Hardware companies is 1.72, based on 1,796 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. ESCO Technologies's current Debt-to-EBITDA of 0.65 is 62.1% 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 ESCO Technologies. For the Hardware industry, the median Debt-to-EBITDA is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ESCO Technologies's current Debt-to-EBITDA is 0.65, which is 43% below median its own 10-year median of 1.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ESCO Technologies stock overvalued right now?
Based on GuruFocus' analysis, ESCO Technologies (ESE) is currently considered Significantly Overvalued. The stock's GF Value™ is $187.73, compared to a current price of $319.38 — trading 70.1% above its estimated fair value. The current Debt-to-EBITDA is 0.65, which is 43% below median its 10-year median of 1.15 and 62.1% below the Hardware industry median of 1.72. ESCO Technologies' overall GF Score™ is 87/100 with 6 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 ESCO Technologies (ESE), the current Debt-to-EBITDA is 0.65 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 ESCO Technologies (ESE) Overvalued in 2026?
Based on GuruFocus' analysis, ESCO Technologies stock appears to be overvalued.
The current stock price of $319.38 is trading 70.1% above its estimated GF Value™ of $187.73.
GuruFocus considers ESCO Technologies to be Significantly Overvalued.
Key valuation signals for ESE:
Debt-to-EBITDA: 0.65 (43% below median its 10-year median of 1.15)
GF Value™: $187.73 vs. price of $319.38 (70.1% above fair value)
Industry Position: 62.1% below the Hardware median (#517 of 1796)
No single metric tells the full story. See the ESE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ESCO Technologies Inc sells engineered products and systems for utility, industrial, aerospace, and commercial applications. The firm operates in three segments: Aerospace & Defense (A&D), Utility Solutions Group (USG), and RF Test & Measurement (Test). The Aerospace and Defense segment designs and manufactures specialty filtration and naval products. The USG segment provides diagnostic testing solutions. The Test segment provides its customers with the ability to identify, measure, and contain magnetic, electromagnetic, and acoustic energy.
87GF Score
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