Coles GroupFRA:2OF -0.70%71 Debt-to-EBITDA is 6.74 as of Dec. 2025, which is 110% above its 10-year median of 3.21. GuruFocus rates FRA:2OF with a GF Score™ of 71/100 and a GF Value™ of €12.12 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 255 Retail - Defensive companies, Coles Group ranks worse than 89.02% 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 Coles Group's Debt-to-EBITDA or its related term are showing as below:
FRA:2OF'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.39 Med: 3.21 Max: 6.76
Current: 6.76
During the past 8 years, the highest Debt-to-EBITDA Ratio of Coles Group was 6.76. The lowest was 1.39. And the median was 3.21.
FRA:2OF's Debt-to-EBITDA is ranked worse than 89.02% of 255
companies
in the Retail - Defensive industry
Industry Median: 2.19
vs FRA:2OF: 6.76
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.
Coles Group Debt-to-EBITDA Related Terms
Coles Group Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Coles Group'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:2OF vs KR, SFM, ACI: Debt-to-EBITDA Comparison
For the Grocery Stores subindustry, Coles Group'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.
Coles Group Debt-to-EBITDA vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Coles Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Coles Group'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.
Coles Group (FRA:2OF) has a Debt-to-EBITDA of 6.74 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 Coles Group. This is 110% above median its historical median of 3.21. Over the past decade, Coles Group's Debt-to-EBITDA has ranged from 1.39 to 6.76. According to the industry distribution chart, Coles Group ranks #227 out of 255 companies in the Retail - Defensive industry, placing it in the top 89%.
Is Coles Group's Debt-to-EBITDA too high?
Coles Group's current Debt-to-EBITDA of 6.74 is 110% above median its 10-year median of 3.21. Over the past 10 years, this metric has ranged from a low of 1.39 to a high of 6.76. The Retail - Defensive industry median Debt-to-EBITDA is 2.19. Coles Group's value of 6.74 is 207.8% above this industry median. Based on the distribution chart, Coles Group ranks #227 out of 255 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, Coles Group has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Coles Group's Debt-to-EBITDA compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Coles Group ranks #227 out of 255 companies for Debt-to-EBITDA. This places Coles Group in the lower half of its industry. The industry median Debt-to-EBITDA is 2.19. Coles Group's value of 6.74 is 207.8% above this benchmark. Historically, Coles Group's own Debt-to-EBITDA has ranged from 1.39 to 6.76 over the past decade. While the company's 10-year median is 3.21 vs. the industry median of 2.19, Coles Group 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 Retail - Defensive company?
The median Debt-to-EBITDA among Retail - Defensive companies is 2.19, based on 255 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. Coles Group's current Debt-to-EBITDA of 6.74 is 207.8% 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 Coles Group. For the Retail - Defensive 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. Coles Group's current Debt-to-EBITDA is 6.74, which is 110% above median its own 10-year median of 3.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coles Group stock overvalued right now?
Based on GuruFocus' analysis, Coles Group (FRA:2OF) is currently considered Modestly Overvalued. The stock's GF Value™ is €12.12, compared to a current price of €14.10 — trading 16.3% above its estimated fair value. The current Debt-to-EBITDA is 6.74, which is 110% above median its 10-year median of 3.21 and 207.8% above the Retail - Defensive industry median of 2.19. Coles Group's overall GF Score™ is 71/100 with 8 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 Coles Group (FRA:2OF), the current Debt-to-EBITDA is 6.74 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 Coles Group (FRA:2OF) Overvalued in 2026?
Based on GuruFocus' analysis, Coles Group stock appears to be overvalued.
The current stock price of €14.10 is trading 16.3% above its estimated GF Value™ of €12.12.
GuruFocus considers Coles Group to be Modestly Overvalued.
Key valuation signals for FRA:2OF:
Debt-to-EBITDA: 6.74 (110% above median its 10-year median of 3.21)
GF Value™: €12.12 vs. price of €14.10 (16.3% above fair value)
Industry Position: 207.8% above the Retail - Defensive median (#227 of 255)
No single metric tells the full story. See the FRA:2OF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coles is one of Australia's largest retailers, operating the second-largest supermarket chain behind market leader Woolworths, and the country's second-largest liquor chain. The group has an extensive store network of over 1,800 stores and roughly 80% of Australians live within a 10-minute drive from a Coles store. The retailer employs some 120,000 people, who process some 20 million individual customer transactions a week. This compares with Woolworths processing about 30 million customer transactions per week from Australia's population of 27 million.
71GF Score
Get the complete analysis for FRA:2OF
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
FRA:2OF has been successfully added to your 
