Lenovo Group (FRA:LHL1) Debt-to-EBITDA : (As of Jun. 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:LHL1 Lenovo Group Ltd FRA:LHL1
71 GF Score
Price €82.00
GF Value €33.28
Valuation Significantly Overvalued
! 9 Warning Signs
View Full Analysis

What is Lenovo Group Debt-to-EBITDA?

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

Lenovo Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €872 Mil. Lenovo Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €4,959 Mil. Lenovo Group's annualized EBITDA for the quarter that ended in Jun. 2026 was €1,408 Mil. Lenovo Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 was 4.14.

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 Lenovo Group's Debt-to-EBITDA or its related term are showing as below:

FRA:LHL1' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.87   Med: 1.61   Max: 4.01
Current: 1.83

During the past 13 years, the highest Debt-to-EBITDA Ratio of Lenovo Group was 4.01. The lowest was 0.87. And the median was 1.61.

FRA:LHL1's Debt-to-EBITDA is ranked worse than
52.25% of 1803 companies
in the Hardware industry
Industry Median: 1.69 vs FRA:LHL1: 1.83

Lenovo Group  (FRA:LHL1) 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.


Lenovo Group Debt-to-EBITDA Related Terms


Lenovo Group Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Lenovo 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.

Lenovo Group Debt-to-EBITDA Chart

Lenovo Group Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - - -

Lenovo Group Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
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 - - - - -

FRA:LHL1 vs DELL, ANET, SNDK: Debt-to-EBITDA Comparison

For the Computer Hardware subindustry, Lenovo 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.


Lenovo Group Debt-to-EBITDA vs Hardware Industry

For the Hardware industry and Technology sector, Lenovo Group's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Lenovo Group's Debt-to-EBITDA falls into.


FRA:LHL1
71GF Score
Lenovo Group Ltd FRA:LHL1
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Lenovo Group Debt-to-EBITDA Calculation

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

Lenovo Group's Debt-to-EBITDA for the fiscal year that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(857.88883497945 + 3617.4188141995) / 4134.6402471624
=1.08

Lenovo Group's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(871.71364932057 + 4958.9182407036) / 1407.9140788788
=4.14

* 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.

Is Lenovo Group (FRA:LHL1) Overvalued in 2026?

Based on GuruFocus' analysis, Lenovo Group stock appears to be overvalued. The current stock price of €82.00 is trading 146.4% above its estimated GF Value™ of €33.28. GuruFocus considers Lenovo Group to be Significantly Overvalued.

Key valuation signals for FRA:LHL1:

  • Debt-to-EBITDA:
  • GF Value™: €33.28 vs. price of €82.00 (146.4% above fair value)
  • GF Score™: 71/100 with 9 warning signs

No single metric tells the full story. See the FRA:LHL1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Lenovo Group Business Description

Address 979 King\'s Road, 23rd Floor, Lincoln House, Taikoo Place, Quarry Bay, Hong Kong, HKG
Lenovo is a global technology hardware company with a leading market share in personal computers. The firm has been actively growing its data center business, which primarily sells network servers to enterprise and hyperscale customers, as well as storage equipment through its mainland China joint venture with NetApp. Server-related revenue contribution has jumped to 23% of overall sales in fiscal 2025, from 6% in 2015.
71GF Score

Get the complete analysis for FRA:LHL1

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

€82.00
Price
€33.28
GF Value