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Hong Leong AsiaFRA:HOM +1.94%62 Debt-to-EBITDA is 1.16 as of Jun. 2026, which is 51% below its 10-year median of 2.38. GuruFocus rates FRA:HOM with a GF Score™ of 62/100 and a GF Value™ of €0.84 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,104 Vehicles & Parts companies, Hong Leong Asia ranks better than 61.68% 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 Hong Leong Asia's Debt-to-EBITDA or its related term are showing as below:
FRA:HOM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.62 Med: 2.38 Max: 3.07
Current: 1.62
During the past 13 years, the highest Debt-to-EBITDA Ratio of Hong Leong Asia was 3.07. The lowest was 1.62. And the median was 2.38.
FRA:HOM's Debt-to-EBITDA is ranked better than 61.68% of 1104
companies
in the Vehicles & Parts industry
Industry Median: 2.29
vs FRA:HOM: 1.62
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.
Hong Leong Asia Debt-to-EBITDA Related Terms
Hong Leong Asia Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Hong Leong Asia'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 Auto Manufacturers subindustry, Hong Leong Asia'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.
Hong Leong Asia Debt-to-EBITDA vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hong Leong Asia's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Hong Leong Asia'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 (Jun. 2026) EBITDA data.
Hong Leong Asia (FRA:HOM) has a Debt-to-EBITDA of 1.16 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 Hong Leong Asia. This is 51% below median its historical median of 2.38. Over the past decade, Hong Leong Asia's Debt-to-EBITDA has ranged from 1.62 to 3.07. According to the industry distribution chart, Hong Leong Asia ranks #423 out of 1104 companies in the Vehicles & Parts industry, placing it in the top 38.3%.
Is Hong Leong Asia's Debt-to-EBITDA too high?
Hong Leong Asia's current Debt-to-EBITDA of 1.16 is 51% below median its 10-year median of 2.38. Over the past 10 years, this metric has ranged from a low of 1.62 to a high of 3.07. The Vehicles & Parts industry median Debt-to-EBITDA is 2.29. Hong Leong Asia's value of 1.16 is 49.3% below this industry median. Based on the distribution chart, Hong Leong Asia ranks #423 out of 1104 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Hong Leong Asia has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Leong Asia's Debt-to-EBITDA compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Hong Leong Asia ranks #423 out of 1104 companies for Debt-to-EBITDA. This puts Hong Leong Asia in the upper half of its industry. The industry median Debt-to-EBITDA is 2.29. Hong Leong Asia's value of 1.16 is 49.3% below this benchmark. Historically, Hong Leong Asia's own Debt-to-EBITDA has ranged from 1.62 to 3.07 over the past decade. While the company's 10-year median is 2.38 vs. the industry median of 2.29, Hong Leong Asia 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 Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.29, based on 1,104 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. Hong Leong Asia's current Debt-to-EBITDA of 1.16 is 49.3% 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 Hong Leong Asia. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Leong Asia's current Debt-to-EBITDA is 1.16, which is 51% below median its own 10-year median of 2.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Leong Asia stock overvalued right now?
Based on GuruFocus' analysis, Hong Leong Asia (FRA:HOM) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.84, compared to a current price of €2.10 — trading 150% above its estimated fair value. The current Debt-to-EBITDA is 1.16, which is 51% below median its 10-year median of 2.38 and 49.3% below the Vehicles & Parts industry median of 2.29. Hong Leong Asia's overall GF Score™ is 62/100 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 Hong Leong Asia (FRA:HOM), the current Debt-to-EBITDA is 1.16 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 Hong Leong Asia (FRA:HOM) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Leong Asia stock appears to be overvalued.
The current stock price of €2.10 is trading 150% above its estimated GF Value™ of €0.84.
GuruFocus considers Hong Leong Asia to be Significantly Overvalued.
Key valuation signals for FRA:HOM:
Debt-to-EBITDA: 1.16 (51% below median its 10-year median of 2.38)
GF Value™: €0.84 vs. price of €2.10 (150% above fair value)
Industry Position: 49.3% below the Vehicles & Parts median (#423 of 1104)
No single metric tells the full story. See the FRA:HOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Leong Asia Ltd is the industrial manufacturing and distribution division of Hong Leong Group Singapore. It operates as the diversified industrial conglomerate in China and Southeast Asia. Its reportable segments are Powertrain solutions: engines for on-road, off-road, genset and marine applications. and Building materials: cement, precast concrete products, ready-mix concrete and quarry products. Geographically it derives key revenue from China.
62GF Score
Get the complete analysis for FRA:HOM
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