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H World GroupFRA:CL4 -0.56%83 Debt-to-EBITDA is 5.40 as of Mar. 2026, which is 19% above its 10-year median of 4.54. GuruFocus rates FRA:CL4 with a GF Score™ of 83/100 and a GF Value™ of €3.97. The stock has 1 warning sign investors should review. Among 647 Travel & Leisure companies, H World Group ranks worse than 67.85% 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 H World Group's Debt-to-EBITDA or its related term are showing as below:
FRA:CL4'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -117.14 Med: 4.54 Max: 169.45
Current: 4.13
During the past 13 years, the highest Debt-to-EBITDA Ratio of H World Group was 169.45. The lowest was -117.14. And the median was 4.54.
FRA:CL4's Debt-to-EBITDA is ranked worse than 67.85% of 647
companies
in the Travel & Leisure industry
Industry Median: 2.55
vs FRA:CL4: 4.13
H World Group (FRA:CL4) 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.
H World Group Debt-to-EBITDA Related Terms
H World Group Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for H World 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.
For the Lodging subindustry, H World 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.
H World Group Debt-to-EBITDA vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, H World Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where H World 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 four times the quarterly (Mar. 2026) EBITDA data.
H World Group (FRA:CL4) has a Debt-to-EBITDA of 5.40 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 H World Group. This is 19% above median its historical median of 4.54. According to the industry distribution chart, H World Group ranks #439 out of 647 companies in the Travel & Leisure industry, placing it in the top 67.9%.
Is H World Group's Debt-to-EBITDA too high?
H World Group's current Debt-to-EBITDA of 5.40 is 19% above median its 10-year median of 4.54. The Travel & Leisure industry median Debt-to-EBITDA is 2.55. H World Group's value of 5.40 is 111.8% above this industry median. Based on the distribution chart, H World Group ranks #439 out of 647 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, H World Group has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does H World Group's Debt-to-EBITDA compare to H and WH?
According to the Travel & Leisure industry distribution chart, H World Group ranks #439 out of 647 companies for Debt-to-EBITDA. This places H World Group in the lower half of its industry. The industry median Debt-to-EBITDA is 2.55. H World Group's value of 5.40 is 111.8% above this benchmark. While the company's 10-year median is 4.54 vs. the industry median of 2.55, H World 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 Travel & Leisure company?
The median Debt-to-EBITDA among Travel & Leisure companies is 2.55, based on 647 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. H World Group's current Debt-to-EBITDA of 5.40 is 111.8% 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 H World Group. For the Travel & Leisure industry, the median Debt-to-EBITDA is 2.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H World Group's current Debt-to-EBITDA is 5.40, which is 19% above median its own 10-year median of 4.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H World Group stock overvalued right now?
H World Group (FRA:CL4) has a current Debt-to-EBITDA of 5.40. The stock's GF Value™ is €3.97, compared to a current price of €3.52 — trading 11.3% below its estimated fair value. The current Debt-to-EBITDA is 5.40, which is 19% above median its 10-year median of 4.54 and 111.8% above the Travel & Leisure industry median of 2.55. H World Group's overall GF Score™ is 83/100 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 H World Group (FRA:CL4), the current Debt-to-EBITDA is 5.40 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 H World Group (FRA:CL4) Overvalued in 2026?
Based on GuruFocus' analysis, H World Group stock appears to be undervalued.
The current stock price of €3.52 is trading 11.3% below its estimated GF Value™ of €3.97.
Key valuation signals for FRA:CL4:
Debt-to-EBITDA: 5.40 (19% above median its 10-year median of 4.54)
GF Value™: €3.97 vs. price of €3.52 (11.3% below fair value)
Industry Position: 111.8% above the Travel & Leisure median (#439 of 647)
No single metric tells the full story. See the FRA:CL4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H World Group Ltd a foremost, fast-growing multi-brand hotel group with international operations. The principal business activities of the Company are to develop and operate leased and owned, manachised and franchised hotels mainly in the PRC or PRC Mainland. The Group has two operating segments which are legacy Huazhu and legacy DH according to the way management intends to evaluate results and allocate resources within the Group. The majority of revenue comes from legacy Huazhu. The company has presence in Greater China and also Outside Greater China.
83GF Score
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