FREKF (Freee KK) Debt-to-EBITDA : 4.01 (As of Dec. 2025)


FREKF Freee KK FREKF
64 GF Score
Price $11.23
GF Value $28.65
Valuation Possible Value Trap
! 3 Warning Signs
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What is Freee KK Debt-to-EBITDA?

Freee KK FREKF 64 Debt-to-EBITDA is 4.01 as of Dec. 2025. GuruFocus rates FREKF with a GF Score™ of 64/100 and a GF Value™ of $28.65 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,702 Software companies, Freee KK ranks worse than 53.23% on this metric.

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

Freee KK's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was $71.1 Mil. Freee KK's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2025 was $0.0 Mil. Freee KK's annualized EBITDA for the quarter that ended in Dec. 2025 was $17.7 Mil. Freee KK's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2025 was 4.01.

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 Freee KK's Debt-to-EBITDA or its related term are showing as below:

FREKF' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.47   Med: -0.08   Max: 10.65
Current: 1.24

During the past 7 years, the highest Debt-to-EBITDA Ratio of Freee KK was 10.65. The lowest was -0.47. And the median was -0.08.

FREKF's Debt-to-EBITDA is ranked worse than
53.23% of 1702 companies
in the Software industry
Industry Median: 1.075 vs FREKF: 1.24

Freee KK  (OTCPK:FREKF) 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.


Freee KK Debt-to-EBITDA Related Terms


Freee KK Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Freee KK'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.

Freee KK Debt-to-EBITDA Chart

Freee KK Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Debt-to-EBITDA
Get a 7-Day Free Trial -0.12 -0.05 0.00 -0.47 10.65

Freee KK Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 -0.21 0.25 11.72 4.01 40.48

FREKF vs UBER, SHOP, CRM: Debt-to-EBITDA Comparison

For the Software - Application subindustry, Freee KK'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.


Freee KK Debt-to-EBITDA vs Software Industry

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

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


FREKF
64GF Score
Freee KK FREKF
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
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Freee KK Debt-to-EBITDA Calculation

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

Freee KK's Debt-to-EBITDA for the fiscal year that ended in Jun. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(66.444 + 0) / 6.237
=10.65

Freee KK'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
=(71.064 + 0) / 17.724
=4.01

* 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 (Dec. 2025) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 4.01 mean?
Freee KK (FREKF) has a Debt-to-EBITDA of 4.01 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 Freee KK. According to the industry distribution chart, Freee KK ranks #906 out of 1702 companies in the Software industry, placing it in the top 53.2%.
Is Freee KK's Debt-to-EBITDA too high?
Freee KK's current Debt-to-EBITDA is 4.01. The Software industry median Debt-to-EBITDA is 1.08. Freee KK's value of 4.01 is 273% above this industry median. Based on the distribution chart, Freee KK ranks #906 out of 1702 companies in the Software industry, which is below the industry midpoint. Overall, Freee KK has a GF Score™ of 64/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Freee KK's Debt-to-EBITDA compare to UBER and SHOP?
According to the Software industry distribution chart, Freee KK ranks #906 out of 1702 companies for Debt-to-EBITDA. This places Freee KK in the lower half of its industry. The industry median Debt-to-EBITDA is 1.08. Freee KK's value of 4.01 is 273% 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 1.08, based on 1,702 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. Freee KK's current Debt-to-EBITDA of 4.01 is 273% 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 Freee KK. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freee KK's current Debt-to-EBITDA is 4.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freee KK stock overvalued right now?
Based on GuruFocus' analysis, Freee KK (FREKF) is currently considered Possible Value Trap. The stock's GF Value™ is $28.65, compared to a current price of $11.23 — trading 60.8% below its estimated fair value. The current Debt-to-EBITDA is 4.01 and 273% above the Software industry median of 1.08. Freee KK's overall GF Score™ is 64/100 with 3 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 Freee KK (FREKF), the current Debt-to-EBITDA is 4.01 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 Freee KK (FREKF) Overvalued in 2026?

Based on GuruFocus' analysis, Freee KK stock appears to be undervalued. The current stock price of $11.23 is trading 60.8% below its estimated GF Value™ of $28.65. GuruFocus considers Freee KK to be Possible Value Trap.

Key valuation signals for FREKF:

  • Debt-to-EBITDA: 4.01
  • GF Value™: $28.65 vs. price of $11.23 (60.8% below fair value)
  • GF Score™: 64/100 with 3 warning signs
  • Industry Position: 273% above the Software median (#906 of 1702)

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


Freee KK Business Description

Other Exchanges 4478:Japan
Address 2-8-1 Nishi-Gotanda, Shinagawa-ku, Gotanda First Building 9th Floor, Tokyo, JPN, 141-0031
Freee KK is a developer of cloud-based software. Its software products include Cloud Accounting software, Cloud HR Labor software, Cloud ERP for Midsize companies, among others.
64GF Score

Get the complete analysis for FREKF

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

$11.23
Price
$28.65
GF Value