Fair IsaacFICO -2.63%87 Debt-to-EBITDA is 2.26 as of Mar. 2026, which is 21% below its 10-year median of 2.87. GuruFocus rates FICO with a GF Score™ of 87/100 and a GF Value™ of $2,108.22 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,702 Software companies, Fair Isaac ranks worse than 76.15% 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 Fair Isaac's Debt-to-EBITDA or its related term are showing as below:
FICO'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.48 Med: 2.87 Max: 3.5
Current: 3.15
During the past 13 years, the highest Debt-to-EBITDA Ratio of Fair Isaac was 3.50. The lowest was 2.48. And the median was 2.87.
FICO's Debt-to-EBITDA is ranked worse than 76.15% of 1702
companies
in the Software industry
Industry Median: 1.085
vs FICO: 3.15
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.
Fair Isaac Debt-to-EBITDA Related Terms
Fair Isaac Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Fair Isaac'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 Software - Application subindustry, Fair Isaac'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.
Fair Isaac Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Fair Isaac's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Fair Isaac'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.
Fair Isaac (FICO) has a Debt-to-EBITDA of 2.26 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 Fair Isaac. This is 21% below median its historical median of 2.87. Over the past decade, Fair Isaac's Debt-to-EBITDA has ranged from 2.48 to 3.50. According to the industry distribution chart, Fair Isaac ranks #1296 out of 1702 companies in the Software industry, placing it in the top 76.1%.
Is Fair Isaac's Debt-to-EBITDA too high?
Fair Isaac's current Debt-to-EBITDA of 2.26 is 21% below median its 10-year median of 2.87. Over the past 10 years, this metric has ranged from a low of 2.48 to a high of 3.50. The Software industry median Debt-to-EBITDA is 1.09. Fair Isaac's value of 2.26 is 108.3% above this industry median. Based on the distribution chart, Fair Isaac ranks #1296 out of 1702 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Fair Isaac has a GF Score™ of 87/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fair Isaac's Debt-to-EBITDA compare to MSTR and ZM?
According to the Software industry distribution chart, Fair Isaac ranks #1296 out of 1702 companies for Debt-to-EBITDA. This places Fair Isaac in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. Fair Isaac's value of 2.26 is 108.3% above this benchmark. Historically, Fair Isaac's own Debt-to-EBITDA has ranged from 2.48 to 3.50 over the past decade. While the company's 10-year median is 2.87 vs. the industry median of 1.09, Fair Isaac 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 1,702 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. Fair Isaac's current Debt-to-EBITDA of 2.26 is 108.3% 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 Fair Isaac. 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. Fair Isaac's current Debt-to-EBITDA is 2.26, which is 21% below median its own 10-year median of 2.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fair Isaac stock overvalued right now?
Based on GuruFocus' analysis, Fair Isaac (FICO) is currently considered Significantly Undervalued. The stock's GF Value™ is $2,108.22, compared to a current price of $1,266.08 — trading 39.9% below its estimated fair value. The current Debt-to-EBITDA is 2.26, which is 21% below median its 10-year median of 2.87 and 108.3% above the Software industry median of 1.09. Fair Isaac's overall GF Score™ is 87/100 with 1 warning sign 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 Fair Isaac (FICO), the current Debt-to-EBITDA is 2.26 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 Fair Isaac (FICO) Overvalued in 2026?
Based on GuruFocus' analysis, Fair Isaac stock appears to be undervalued.
The current stock price of $1,266.08 is trading 39.9% below its estimated GF Value™ of $2,108.22.
GuruFocus considers Fair Isaac to be Significantly Undervalued.
Key valuation signals for FICO:
Debt-to-EBITDA: 2.26 (21% below median its 10-year median of 2.87)
GF Value™: $2,108.22 vs. price of $1,266.08 (39.9% below fair value)
Industry Position: 108.3% above the Software median (#1296 of 1702)
No single metric tells the full story. See the FICO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1956, Fair Isaac Corporation is a leading applied analytics company. Fair Isaac is primarily known for its FICO credit scores, which is a widely used industry benchmark to determine the creditworthiness of an individual consumer. The firm's US-centric credit scores business accounts for most of the firm's revenue and profits and consists of business-to-business and business-to-consumer services. In addition to scores, Fair Isaac also sells software primarily to financial institutions for areas such as analytics, decision-making, customer workflows, and fraud.
87GF Score
Get the complete analysis for FICO
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FICO has been successfully added to your 
