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The Honest CoHNST +2.02%60 Debt-to-EBITDA is 1.30 as of Mar. 2026. GuruFocus rates HNST with a GF Score™ of 60/100 and a GF Value™ of $2.81 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,551 Consumer Packaged Goods companies, The Honest Co ranks worse than 64474.47% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
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 The Honest Co's Debt-to-EBITDA or its related term are showing as below:
HNST'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -4.42 Med: -1.15 Max: 7.35
Current: -1.6
During the past 7 years, the highest Debt-to-EBITDA Ratio of The Honest Co was 7.35. The lowest was -4.42. And the median was -1.15.
HNST's Debt-to-EBITDA is ranked worse than 100% of 1551
companies
in the Consumer Packaged Goods industry
Industry Median: 2.08
vs HNST: -1.60
The Honest Co (NAS:HNST) 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.
The Honest Co Debt-to-EBITDA Related Terms
The Honest Co Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for The Honest Co'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.
HNST vs MAGN, NUS, WALD: Debt-to-EBITDA Comparison
For the Household & Personal Products subindustry, The Honest Co'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.
The Honest Co Debt-to-EBITDA vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Honest Co's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where The Honest Co'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 (Mar. 2026) EBITDA data.
The Honest Co (HNST) has a Debt-to-EBITDA of 1.30 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on The Honest Co. According to the industry distribution chart, The Honest Co ranks #999999 out of 1551 companies in the Consumer Packaged Goods industry.
Is The Honest Co's Debt-to-EBITDA too high?
The Honest Co's current Debt-to-EBITDA is 1.30. The Consumer Packaged Goods industry median Debt-to-EBITDA is 2.08. The Honest Co's value of 1.30 is 37.5% below this industry median. Based on the distribution chart, The Honest Co ranks #999999 out of 1551 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, The Honest Co has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Honest Co's Debt-to-EBITDA compare to MAGN and NUS?
According to the Consumer Packaged Goods industry distribution chart, The Honest Co ranks #999999 out of 1551 companies for Debt-to-EBITDA. This places The Honest Co in the lower half of its industry. The industry median Debt-to-EBITDA is 2.08. The Honest Co's value of 1.30 is 37.5% below 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 Consumer Packaged Goods company?
The median Debt-to-EBITDA among Consumer Packaged Goods companies is 2.08, based on 1,551 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. The Honest Co's current Debt-to-EBITDA of 1.30 is 37.5% 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 The Honest Co. For the Consumer Packaged Goods industry, the median Debt-to-EBITDA is 2.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Honest Co's current Debt-to-EBITDA is 1.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Honest Co stock overvalued right now?
Based on GuruFocus' analysis, The Honest Co (HNST) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.81, compared to a current price of $3.80 — trading 35.2% above its estimated fair value. The current Debt-to-EBITDA is 1.30 and 37.5% below the Consumer Packaged Goods industry median of 2.08. The Honest Co's overall GF Score™ is 60/100 with 4 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 The Honest Co (HNST), the current Debt-to-EBITDA is 1.30 as of Mar. 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 The Honest Co (HNST) Overvalued in 2026?
Based on GuruFocus' analysis, The Honest Co stock appears to be overvalued.
The current stock price of $3.80 is trading 35.2% above its estimated GF Value™ of $2.81.
GuruFocus considers The Honest Co to be Significantly Overvalued.
Key valuation signals for HNST:
Debt-to-EBITDA: 1.30
GF Value™: $2.81 vs. price of $3.80 (35.2% above fair value)
Industry Position: 37.5% below the Consumer Packaged Goods median (#999999 of 1551)
No single metric tells the full story. See the HNST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Honest Co Inc is a personal care company dedicated to creating cleanly-formulated and sustainably-designed products for everyone from babies to adults. By combining thoughtful design with science-based innovation, the company delivers personal care products for everyone from babies to adults, spanning categories across wipes, personal care, diapers, and beauty. It has three product categories namely; Diapers and Wipes, Skin and Personal Care, and Household and Wellness, out of which the majority of its revenue is generated from the sale of diapers and wipes. The company operates only in the United States.
60GF Score
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