FRMB (Forum Mobile) Debt-to-EBITDA : -0.42 (As of Jun. 2006)

Author:

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.

View Profile →

Reviewed by:

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.

View Profile →

What is Forum Mobile Debt-to-EBITDA?

Forum Mobile FRMB -99.00% Debt-to-EBITDA is -0.42 as of Jun. 2006.

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

Forum Mobile's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2006 was $9.66 Mil. Forum Mobile's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2006 was $2.89 Mil. Forum Mobile's annualized EBITDA for the quarter that ended in Jun. 2006 was $-30.20 Mil. Forum Mobile's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2006 was -0.42.

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 Forum Mobile's Debt-to-EBITDA or its related term are showing as below:

FRMB's Debt-to-EBITDA is not ranked ^*
in the Telecommunication Services industry.
Industry Median: 2.01
* Ranked among companies with meaningful Debt-to-EBITDA only.

Forum Mobile (OTCPK:FRMB) 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.

Forum Mobile Debt-to-EBITDA Related Terms

Forum Mobile Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Forum Mobile'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.

Forum Mobile Debt-to-EBITDA Chart

Forum Mobile Annual Data

Trend

Dec00

Dec01

Dec02

Dec03

Dec04

Dec05

Debt-to-EBITDA

Get a 7-Day Free Trial

-1.46

-3.24

-1.31

-0.49

-2.85

Forum Mobile Quarterly Data
	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06
Debt-to-EBITDA	Get a 7-Day Free Trial															7.28	-7.79	-0.61	-6.08	-0.42

FRMB vs DIRV, FULO, TOWTF: Debt-to-EBITDA Comparison

For the Telecom Services subindustry, Forum Mobile'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.

Forum Mobile Debt-to-EBITDA vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Forum Mobile's Debt-to-EBITDA distribution charts can be found below:

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

Save Embed

Forum Mobile Debt-to-EBITDA Calculation

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

Forum Mobile's Debt-to-EBITDA for the fiscal year that ended in Dec. 2005 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(6.443	+	6.858)	/	-4.668
	=	-2.85

Forum Mobile's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2006 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(9.662	+	2.891)	/	-30.196
	=	-0.42

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. 2006) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →

What does a Debt-to-EBITDA of -0.42 mean?

Forum Mobile (FRMB) has a Debt-to-EBITDA of -0.42 as of Jun. 2006. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Forum Mobile.

Is Forum Mobile's Debt-to-EBITDA too high?

Forum Mobile's current Debt-to-EBITDA is -0.42.

How does Forum Mobile's Debt-to-EBITDA compare to DIRV and FULO?

Forum Mobile's Debt-to-EBITDA of -0.42 can be compared against companies in the Telecommunication Services industry. The industry median Debt-to-EBITDA is 2.01. 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 Telecommunication Services company?

The median Debt-to-EBITDA among Telecommunication Services companies is 2.01, based on 303 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. 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 Forum Mobile. For the Telecommunication Services industry, the median Debt-to-EBITDA is 2.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forum Mobile's current Debt-to-EBITDA is -0.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Forum Mobile stock overvalued right now?

Forum Mobile (FRMB) has a current Debt-to-EBITDA of -0.42. The current Debt-to-EBITDA is -0.42. 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 Forum Mobile (FRMB), the current Debt-to-EBITDA is -0.42 as of Jun. 2006. 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.

Forum Mobile Business Description

Industry Communication Services Telecommunication Services

Comparable Companies DIRV FULO TOWTF INVT TWER DTGI MTSL WPCS KONE SLXXF TEUM VLTC CCOP GLOW CLRI TELLF NXGH OTEL SYTE FSNN

Address 26 Broadway, 21st Floor, New York, NY, USA, 10004

Website http://www.forum-mobile.com

Forum Mobile Inc is a global Mobile Virtual Network Enabler (MVNE) based in the USA. It specializes in MVNE, Mobile Services, Telecom, and cloud services. The company is active in a variety of complementary fields such as private banking, business development, and consulting, and provides hosting and trading platforms. Geographically the business activities are operated through the United States.