Inspur Digital Enterprise Technology (FRA:L1CC) Debt-to-EBITDA : 3.87 (As of Dec. 2025) — 5429% Above Median

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FRA:L1CC Inspur Digital Enterprise Technology Ltd FRA:L1CC
66 GF Score
Price €0.38
GF Value €0.74
! 8 Warning Signs
View Full Analysis

What is Inspur Digital Enterprise Technology Debt-to-EBITDA?

Inspur Digital Enterprise Technology FRA:L1CC 66 Debt-to-EBITDA is 3.87 as of Dec. 2025, which is 5429% above its 10-year median of 0.07. GuruFocus rates FRA:L1CC with a GF Score™ of 66/100 and a GF Value™ of €0.74. The stock has 8 warning signs investors should review. Among 1,728 Software companies, Inspur Digital Enterprise Technology ranks worse than 58.45% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Inspur Digital Enterprise Technology's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was €40.5 Mil. Inspur Digital Enterprise Technology's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was €2.8 Mil. Inspur Digital Enterprise Technology's annualized EBITDA for the quarter that ended in Dec. 2025 was €11.2 Mil. Inspur Digital Enterprise Technology's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2025 was 3.86.

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 Inspur Digital Enterprise Technology's Debt-to-EBITDA or its related term are showing as below:

FRA:L1CC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.26   Med: 0.07   Max: 1.5
Current: 1.5

During the past 13 years, the highest Debt-to-EBITDA Ratio of Inspur Digital Enterprise Technology was 1.50. The lowest was -0.26. And the median was 0.07.

FRA:L1CC's Debt-to-EBITDA is ranked worse than
58.45% of 1728 companies
in the Software industry
Industry Median: 1.03 vs FRA:L1CC: 1.50

Inspur Digital Enterprise Technology  (FRA:L1CC) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

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.


Inspur Digital Enterprise Technology Debt-to-EBITDA Related Terms


Inspur Digital Enterprise Technology Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Inspur Digital Enterprise Technology'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.

Inspur Digital Enterprise Technology Debt-to-EBITDA Chart

Inspur Digital Enterprise Technology Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.17 0.09 0.06 0.03 1.13

Inspur Digital Enterprise Technology Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.04 0.51 0.02 1.97 3.87

FRA:L1CC vs QH, SHOP, UBER: Debt-to-EBITDA Comparison

For the Software - Application subindustry, Inspur Digital Enterprise Technology'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.


Inspur Digital Enterprise Technology Debt-to-EBITDA vs Software Industry

For the Software industry and Technology sector, Inspur Digital Enterprise Technology's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Inspur Digital Enterprise Technology's Debt-to-EBITDA falls into.


FRA:L1CC
66GF Score
Inspur Digital Enterprise Technology Ltd FRA:L1CC
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Inspur Digital Enterprise Technology Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Inspur Digital Enterprise Technology's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(40.54 + 2.793) / 38.395
=1.13

Inspur Digital Enterprise Technology's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(40.54 + 2.793) / 11.212
=3.86

* 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.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 3.87 mean?
Inspur Digital Enterprise Technology (FRA:L1CC) has a Debt-to-EBITDA of 3.87 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 Inspur Digital Enterprise Technology. This is 5429% above median its historical median of 0.07. According to the industry distribution chart, Inspur Digital Enterprise Technology ranks #1010 out of 1728 companies in the Software industry, placing it in the top 58.4%.
Is Inspur Digital Enterprise Technology's Debt-to-EBITDA too high?
Inspur Digital Enterprise Technology's current Debt-to-EBITDA of 3.87 is 5429% above median its 10-year median of 0.07. The Software industry median Debt-to-EBITDA is 1.03. Inspur Digital Enterprise Technology's value of 3.87 is 275.7% above this industry median. Based on the distribution chart, Inspur Digital Enterprise Technology ranks #1010 out of 1728 companies in the Software industry, which is below the industry midpoint. Overall, Inspur Digital Enterprise Technology has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Inspur Digital Enterprise Technology's Debt-to-EBITDA compare to QH and SHOP?
According to the Software industry distribution chart, Inspur Digital Enterprise Technology ranks #1010 out of 1728 companies for Debt-to-EBITDA. This places Inspur Digital Enterprise Technology in the lower half of its industry. The industry median Debt-to-EBITDA is 1.03. Inspur Digital Enterprise Technology's value of 3.87 is 275.7% above this benchmark. While the company's 10-year median is 0.07 vs. the industry median of 1.03, Inspur Digital Enterprise Technology 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 1.03, based on 1,728 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. Inspur Digital Enterprise Technology's current Debt-to-EBITDA of 3.87 is 275.7% 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 Inspur Digital Enterprise Technology. For the Software industry, the median Debt-to-EBITDA is 1.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inspur Digital Enterprise Technology's current Debt-to-EBITDA is 3.87, which is 5429% above median its own 10-year median of 0.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inspur Digital Enterprise Technology stock overvalued right now?
Inspur Digital Enterprise Technology (FRA:L1CC) has a current Debt-to-EBITDA of 3.87. The stock's GF Value™ is €0.74, compared to a current price of €0.38 — trading 48.1% below its estimated fair value. The current Debt-to-EBITDA is 3.87, which is 5429% above median its 10-year median of 0.07 and 275.7% above the Software industry median of 1.03. Inspur Digital Enterprise Technology's overall GF Score™ is 66/100 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 Inspur Digital Enterprise Technology (FRA:L1CC), the current Debt-to-EBITDA is 3.87 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 Inspur Digital Enterprise Technology (FRA:L1CC) Overvalued in 2026?

Based on GuruFocus' analysis, Inspur Digital Enterprise Technology stock appears to be undervalued. The current stock price of €0.38 is trading 48.1% below its estimated GF Value™ of €0.74.

Key valuation signals for FRA:L1CC:

  • Debt-to-EBITDA: 3.87 (5429% above median its 10-year median of 0.07)
  • GF Value™: €0.74 vs. price of €0.38 (48.1% below fair value)
  • GF Score™: 66/100 with 8 warning signs
  • Industry Position: 275.7% above the Software median (#1010 of 1728)

No single metric tells the full story. See the FRA:L1CC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Inspur Digital Enterprise Technology Business Description

Other Exchanges 00596:Hong Kong
Address 1 Wang Kwong Road, Kowloon Bay, Billion Center, Room B&C, 30th Floor, Tower A, Kowloon, Hong Kong, HKG
Inspur Digital Enterprise Technology Ltd is an investment holding company. The company's segments are Cloud services, Management software, and the Internet of Things. The Cloud services segment includes the provision of cloud services. The management software segment involves the provision of software development and other software services, whereas the Internet of Things segment is engaged in the provision of data centre engineering services and sales of IT peripherals and software. Geographically, the firm generates a majority of its revenue from Mainland China, and also has its presence in Hong Kong and Other countries.
66GF Score

Get the complete analysis for FRA:L1CC

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€0.38
Price
€0.74
GF Value