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Iridium CommunicationsIRDM +0.20%77 Debt-to-EBITDA is 4.22 as of Mar. 2026, which is 14% below its 10-year median of 4.90. GuruFocus rates IRDM with a GF Score™ of 77/100 and a GF Value™ of $36.53 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 301 Telecommunication Services companies, Iridium Communications ranks worse than 75.42% 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 Iridium Communications's Debt-to-EBITDA or its related term are showing as below:
IRDM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 3.66 Med: 4.9 Max: 9.11
Current: 4.03
During the past 13 years, the highest Debt-to-EBITDA Ratio of Iridium Communications was 9.11. The lowest was 3.66. And the median was 4.90.
IRDM's Debt-to-EBITDA is ranked worse than 75.42% of 301
companies
in the Telecommunication Services industry
Industry Median: 2.01
vs IRDM: 4.03
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.
Iridium Communications Debt-to-EBITDA Related Terms
Iridium Communications Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Iridium Communications'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.
IRDM vs LBRDA, TDS, LBTYA: Debt-to-EBITDA Comparison
For the Telecom Services subindustry, Iridium Communications'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.
Iridium Communications Debt-to-EBITDA vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Iridium Communications's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Iridium Communications'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.
Iridium Communications (IRDM) has a Debt-to-EBITDA of 4.22 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 Iridium Communications. This is 14% below median its historical median of 4.90. Over the past decade, Iridium Communications' Debt-to-EBITDA has ranged from 3.66 to 9.11. According to the industry distribution chart, Iridium Communications ranks #227 out of 301 companies in the Telecommunication Services industry, placing it in the top 75.4%.
Is Iridium Communications' Debt-to-EBITDA too high?
Iridium Communications' current Debt-to-EBITDA of 4.22 is 14% below median its 10-year median of 4.90. Over the past 10 years, this metric has ranged from a low of 3.66 to a high of 9.11. The Telecommunication Services industry median Debt-to-EBITDA is 2.01. Iridium Communications' value of 4.22 is 110% above this industry median. Based on the distribution chart, Iridium Communications ranks #227 out of 301 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Iridium Communications has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Iridium Communications' Debt-to-EBITDA compare to LBRDA and TDS?
According to the Telecommunication Services industry distribution chart, Iridium Communications ranks #227 out of 301 companies for Debt-to-EBITDA. This places Iridium Communications in the lower half of its industry. The industry median Debt-to-EBITDA is 2.01. Iridium Communications' value of 4.22 is 110% above this benchmark. Historically, Iridium Communications' own Debt-to-EBITDA has ranged from 3.66 to 9.11 over the past decade. While the company's 10-year median is 4.90 vs. the industry median of 2.01, Iridium Communications has consistently been above 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 Telecommunication Services company?
The median Debt-to-EBITDA among Telecommunication Services companies is 2.01, based on 301 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. Iridium Communications's current Debt-to-EBITDA of 4.22 is 110% 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 Iridium Communications. 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. Iridium Communications's current Debt-to-EBITDA is 4.22, which is 14% below median its own 10-year median of 4.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Iridium Communications stock overvalued right now?
Based on GuruFocus' analysis, Iridium Communications (IRDM) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.53, compared to a current price of $46.71 — trading 27.9% above its estimated fair value. The current Debt-to-EBITDA is 4.22, which is 14% below median its 10-year median of 4.90 and 110% above the Telecommunication Services industry median of 2.01. Iridium Communications' overall GF Score™ is 77/100 with 5 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 Iridium Communications (IRDM), the current Debt-to-EBITDA is 4.22 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 Iridium Communications (IRDM) Overvalued in 2026?
Based on GuruFocus' analysis, Iridium Communications stock appears to be overvalued.
The current stock price of $46.71 is trading 27.9% above its estimated GF Value™ of $36.53.
GuruFocus considers Iridium Communications to be Modestly Overvalued.
Key valuation signals for IRDM:
Debt-to-EBITDA: 4.22 (14% below median its 10-year median of 4.90)
GF Value™: $36.53 vs. price of $46.71 (27.9% above fair value)
Industry Position: 110% above the Telecommunication Services median (#227 of 301)
No single metric tells the full story. See the IRDM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iridium Communications Inc is the commercial provider of communications services offering true globalised coverage, connecting people, organizations, and assets to and from anywhere, in real time. The company is a provider of mobile voice and data communications services through a constellation of low-earth-orbiting satellites. Iridium's solutions are ideally suited for industries such as maritime, aviation, government/military, emergency/humanitarian services, mining, forestry, oil and gas, heavy equipment, transportation, and utilities. Iridium also provides service to subscribers from the U.S. Department of Defense, as well as other civil and government agencies world-wide. The Company operates in one business segment, providing satellite communications services and products.
77GF Score
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