Tetra Tech (FRA:TT6) Debt-to-EBITDA : 1.48 (As of Jun. 2026) — 10% Below Median

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FRA:TT6 Tetra Tech Inc FRA:TT6
84 GF Score
Price €30.99
GF Value €28.95
! 2 Warning Signs
View Full Analysis

What is Tetra Tech Debt-to-EBITDA?

Tetra Tech FRA:TT6 +1.97% 84 Debt-to-EBITDA is 1.48 as of Jun. 2026, which is 10% below its 10-year median of 1.65. GuruFocus rates FRA:TT6 with a GF Score™ of 84/100 and a GF Value™ of €28.95. The stock has 2 warning signs investors should review. Among 1,413 Construction companies, Tetra Tech ranks better than 59.8% on this metric.

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

Tetra Tech's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €65 Mil. Tetra Tech's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was €824 Mil. Tetra Tech's annualized EBITDA for the quarter that ended in Jun. 2026 was €600 Mil. Tetra Tech's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2026 was 1.48.

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 Tetra Tech's Debt-to-EBITDA or its related term are showing as below:

FRA:TT6' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.19   Med: 1.65   Max: 2.12
Current: 1.48

During the past 13 years, the highest Debt-to-EBITDA Ratio of Tetra Tech was 2.12. The lowest was 1.19. And the median was 1.65.

FRA:TT6's Debt-to-EBITDA is ranked better than
59.8% of 1413 companies
in the Construction industry
Industry Median: 2.1 vs FRA:TT6: 1.48

Tetra Tech  (FRA:TT6) 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.


Tetra Tech Debt-to-EBITDA Related Terms


Tetra Tech Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Tetra Tech'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.

Tetra Tech Debt-to-EBITDA Chart

Tetra Tech Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.50 1.19 2.12 1.75 2.07

Tetra Tech 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 1.50 1.20 1.63 1.84 1.48

FRA:TT6 vs AGX, ACM, FLR: Debt-to-EBITDA Comparison

For the Engineering & Construction subindustry, Tetra Tech'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.


Tetra Tech Debt-to-EBITDA vs Construction Industry

For the Construction industry and Industrials sector, Tetra Tech's Debt-to-EBITDA distribution charts can be found below:

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


FRA:TT6
84GF Score
Tetra Tech Inc FRA:TT6
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Tetra Tech Debt-to-EBITDA Calculation

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

Tetra Tech's Debt-to-EBITDA for the fiscal year that ended in Sep. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(58.872 + 782.185) / 406.005
=2.07

Tetra Tech'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
=(64.823 + 823.572) / 599.584
=1.48

* 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.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 1.48 mean?
Tetra Tech (FRA:TT6) has a Debt-to-EBITDA of 1.48 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 Tetra Tech. This is 10% below median its historical median of 1.65. Over the past decade, Tetra Tech's Debt-to-EBITDA has ranged from 1.19 to 2.12. According to the industry distribution chart, Tetra Tech ranks #568 out of 1413 companies in the Construction industry, placing it in the top 40.2%.
Is Tetra Tech's Debt-to-EBITDA too high?
Tetra Tech's current Debt-to-EBITDA of 1.48 is 10% below median its 10-year median of 1.65. Over the past 10 years, this metric has ranged from a low of 1.19 to a high of 2.12. The Construction industry median Debt-to-EBITDA is 2.10. Tetra Tech's value of 1.48 is 29.5% below this industry median. Based on the distribution chart, Tetra Tech ranks #568 out of 1413 companies in the Construction industry, which is above the industry midpoint. Overall, Tetra Tech has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Tetra Tech's Debt-to-EBITDA compare to AGX and ACM?
According to the Construction industry distribution chart, Tetra Tech ranks #568 out of 1413 companies for Debt-to-EBITDA. This puts Tetra Tech in the upper half of its industry. The industry median Debt-to-EBITDA is 2.10. Tetra Tech's value of 1.48 is 29.5% below this benchmark. Historically, Tetra Tech's own Debt-to-EBITDA has ranged from 1.19 to 2.12 over the past decade. While the company's 10-year median is 1.65 vs. the industry median of 2.10, Tetra Tech 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 Construction company?
The median Debt-to-EBITDA among Construction companies is 2.10, based on 1,413 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. Tetra Tech's current Debt-to-EBITDA of 1.48 is 29.5% 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 Tetra Tech. For the Construction industry, the median Debt-to-EBITDA is 2.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tetra Tech's current Debt-to-EBITDA is 1.48, which is 10% below median its own 10-year median of 1.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tetra Tech stock overvalued right now?
Tetra Tech (FRA:TT6) has a current Debt-to-EBITDA of 1.48. The stock's GF Value™ is €28.95, compared to a current price of €30.99 — trading 7% above its estimated fair value. The current Debt-to-EBITDA is 1.48, which is 10% below median its 10-year median of 1.65 and 29.5% below the Construction industry median of 2.10. Tetra Tech's overall GF Score™ is 84/100 with 2 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 Tetra Tech (FRA:TT6), the current Debt-to-EBITDA is 1.48 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 Tetra Tech (FRA:TT6) Overvalued in 2026?

Based on GuruFocus' analysis, Tetra Tech stock appears to be overvalued. The current stock price of €30.99 is trading 7% above its estimated GF Value™ of €28.95.

Key valuation signals for FRA:TT6:

  • Debt-to-EBITDA: 1.48 (10% below median its 10-year median of 1.65)
  • GF Value™: €28.95 vs. price of €30.99 (7% above fair value)
  • GF Score™: 84/100 with 2 warning signs
  • Industry Position: 29.5% below the Construction median (#568 of 1413)

No single metric tells the full story. See the FRA:TT6 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tetra Tech Business Description

Address 3475 East Foothill Boulevard, Pasadena, CA, USA, 91107-­6024
Tetra Tech Inc provides consulting and engineering services for environmental, infrastructure, resource management, energy, and international development markets. It specializes in providing water-related services for public and private clients. It designs infrastructure, facilities, and other structures with complex plans and resource management. it has two reportable segments. Its Government Services Group (GSG) segment includes activities with U.S. government clients (federal, state and local) and activities with development agencies world-wide. Commercial/International Services Group (CIG) segment, which derives maximum revenue, includes activities with U.S. commercial clients and international clients other than development agencies.
84GF Score

Get the complete analysis for FRA:TT6

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

€30.99
Price
€28.95
GF Value