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Red VioletFRA:2KH -0.84%71 Debt-to-EBITDA is 0.08 as of Jun. 2026, which is 33% below its 10-year median of 0.12. GuruFocus rates FRA:2KH with a GF Score™ of 71/100 and a GF Value™ of €39.65 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,726 Software companies, Red Violet ranks better than 88.41% 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 Red Violet's Debt-to-EBITDA or its related term are showing as below:
FRA:2KH'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -1.76 Med: 0.12 Max: 0.47
Current: 0.09
During the past 10 years, the highest Debt-to-EBITDA Ratio of Red Violet was 0.47. The lowest was -1.76. And the median was 0.12.
FRA:2KH's Debt-to-EBITDA is ranked better than 88.41% of 1726
companies
in the Software industry
Industry Median: 1.035
vs FRA:2KH: 0.09
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.
Red Violet Debt-to-EBITDA Related Terms
Red Violet Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Red Violet'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.
FRA:2KH vs GTM, DJCO, MITK: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Red Violet'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.
Red Violet Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Red Violet's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Red Violet'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 (Jun. 2026) EBITDA data.
Red Violet (FRA:2KH) has a Debt-to-EBITDA of 0.08 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Red Violet. This is 33% below median its historical median of 0.12. According to the industry distribution chart, Red Violet ranks #200 out of 1726 companies in the Software industry, placing it in the top 11.6%.
Is Red Violet's Debt-to-EBITDA too high?
Red Violet's current Debt-to-EBITDA of 0.08 is 33% below median its 10-year median of 0.12. The Software industry median Debt-to-EBITDA is 1.04. Red Violet's value of 0.08 is 92.3% below this industry median. Based on the distribution chart, Red Violet ranks #200 out of 1726 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Red Violet has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Red Violet's Debt-to-EBITDA compare to GTM and DJCO?
According to the Software industry distribution chart, Red Violet ranks #200 out of 1726 companies for Debt-to-EBITDA. This places Red Violet in the top 12% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.04. Red Violet's value of 0.08 is 92.3% below this benchmark. While the company's 10-year median is 0.12 vs. the industry median of 1.04, Red Violet 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 Software company?
The median Debt-to-EBITDA among Software companies is 1.04, based on 1,726 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. Red Violet's current Debt-to-EBITDA of 0.08 is 92.3% 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 Red Violet. For the Software industry, the median Debt-to-EBITDA is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Violet's current Debt-to-EBITDA is 0.08, which is 33% below median its own 10-year median of 0.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Violet stock overvalued right now?
Based on GuruFocus' analysis, Red Violet (FRA:2KH) is currently considered Significantly Overvalued. The stock's GF Value™ is €39.65, compared to a current price of €59.00 — trading 48.8% above its estimated fair value. The current Debt-to-EBITDA is 0.08, which is 33% below median its 10-year median of 0.12 and 92.3% below the Software industry median of 1.04. Red Violet's overall GF Score™ is 71/100 with 4 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 Red Violet (FRA:2KH), the current Debt-to-EBITDA is 0.08 as of Jun. 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 Red Violet (FRA:2KH) Overvalued in 2026?
Based on GuruFocus' analysis, Red Violet stock appears to be overvalued.
The current stock price of €59.00 is trading 48.8% above its estimated GF Value™ of €39.65.
GuruFocus considers Red Violet to be Significantly Overvalued.
Key valuation signals for FRA:2KH:
Debt-to-EBITDA: 0.08 (33% below median its 10-year median of 0.12)
GF Value™: €39.65 vs. price of €59.00 (48.8% above fair value)
Industry Position: 92.3% below the Software median (#200 of 1726)
No single metric tells the full story. See the FRA:2KH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red Violet Inc builds proprietary technologies and applies analytical capabilities to deliver identity intelligence. The company's solutions enable the real-time identification and location of people, businesses, assets, and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Its cloud-native, AI-enabled identity intelligence platform, CORE, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. The company generates substantially all of its revenue from licensing its solutions.
71GF Score
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