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 NTT Data Group's Debt-to-EBITDA or its related term are showing as below:
FRA:NT5's Debt-to-EBITDA is not ranked *
in the Software industry.
Industry Median: 1.09 * Ranked among companies with meaningful Debt-to-EBITDA only.
NTT Data Group (FRA:NT5) 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.
NTT Data Group Debt-to-EBITDA Related Terms
NTT Data Group Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for NTT Data 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:NT5 vs FIS, FISV, LDOS: Debt-to-EBITDA Comparison
For the Information Technology Services subindustry, NTT Data 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.
NTT Data Group Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, NTT Data Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where NTT Data 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 (Jun. 2025) EBITDA data.
NTT Data Group (FRA:NT5) has a Debt-to-EBITDA of 4.50 as of Jun. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on NTT Data Group.
Is NTT Data Group's Debt-to-EBITDA too high?
NTT Data Group's current Debt-to-EBITDA is 4.50. The Software industry median Debt-to-EBITDA is 1.09. NTT Data Group's value of 4.50 is 312.8% above this industry median. Overall, NTT Data Group has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does NTT Data Group's Debt-to-EBITDA compare to FIS and FISV?
NTT Data Group's Debt-to-EBITDA of 4.50 can be compared against companies in the Software industry. The industry median Debt-to-EBITDA is 1.09. NTT Data Group's value of 4.50 is 312.8% above this benchmark. 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 1.09, based on 1,714 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. NTT Data Group's current Debt-to-EBITDA of 4.50 is 312.8% 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 NTT Data Group. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NTT Data Group's current Debt-to-EBITDA is 4.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NTT Data Group stock overvalued right now?
NTT Data Group (FRA:NT5) has a current Debt-to-EBITDA of 4.50. The current Debt-to-EBITDA is 4.50 and 312.8% above the Software industry median of 1.09. NTT Data Group's overall GF Score™ is 13/100. 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 NTT Data Group (FRA:NT5), the current Debt-to-EBITDA is 4.50 as of Jun. 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.
NTT Data Group Corp provides IT services to a wide range of business fields. It provides solutions in cloud, cybersecurity, data and analytics, Salesforce, SAP, ServiceNow, and application development and management, along with 5G-related services. The company also delivers consulting, sector-specific solutions, business process outsourcing, IT modernization, and managed service offerings.
13GF Score
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