Japan TobaccoJAPAF +7.42%75 Debt-to-EBITDA is 1.21 as of Mar. 2026, which is 8% below its 10-year median of 1.32. GuruFocus rates JAPAF with a GF Score™ of 75/100 and a GF Value™ of $32.94 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 35 Tobacco Products companies, Japan Tobacco ranks worse than 57.14% 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 Japan Tobacco's Debt-to-EBITDA or its related term are showing as below:
JAPAF'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.74 Med: 1.32 Max: 3.07
Current: 1.5
During the past 13 years, the highest Debt-to-EBITDA Ratio of Japan Tobacco was 3.07. The lowest was 0.74. And the median was 1.32.
JAPAF's Debt-to-EBITDA is ranked worse than 57.14% of 35
companies
in the Tobacco Products industry
Industry Median: 1.37
vs JAPAF: 1.50
Japan Tobacco (OTCPK:JAPAF) 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.
Japan Tobacco Debt-to-EBITDA Related Terms
Japan Tobacco Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Japan Tobacco'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.
For the Tobacco subindustry, Japan Tobacco'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.
Japan Tobacco Debt-to-EBITDA vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Japan Tobacco's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Japan Tobacco'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.
Japan Tobacco (JAPAF) has a Debt-to-EBITDA of 1.21 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 Japan Tobacco. This is near median its historical median of 1.32. Over the past decade, Japan Tobacco's Debt-to-EBITDA has ranged from 0.74 to 3.07. According to the industry distribution chart, Japan Tobacco ranks #20 out of 35 companies in the Tobacco Products industry, placing it in the top 57.1%.
Is Japan Tobacco's Debt-to-EBITDA too high?
Japan Tobacco's current Debt-to-EBITDA of 1.21 is near median its 10-year median of 1.32. Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 3.07. The Tobacco Products industry median Debt-to-EBITDA is 1.37. Japan Tobacco's value of 1.21 is 11.7% below this industry median. Based on the distribution chart, Japan Tobacco ranks #20 out of 35 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, Japan Tobacco has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Japan Tobacco's Debt-to-EBITDA compare to PM and MO?
According to the Tobacco Products industry distribution chart, Japan Tobacco ranks #20 out of 35 companies for Debt-to-EBITDA. This places Japan Tobacco in the lower half of its industry. The industry median Debt-to-EBITDA is 1.37. Japan Tobacco's value of 1.21 is 11.7% below this benchmark. Historically, Japan Tobacco's own Debt-to-EBITDA has ranged from 0.74 to 3.07 over the past decade. While the company's 10-year median is 1.32 vs. the industry median of 1.37, Japan Tobacco 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 Tobacco Products company?
The median Debt-to-EBITDA among Tobacco Products companies is 1.37, based on 35 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. Japan Tobacco's current Debt-to-EBITDA of 1.21 is 11.7% 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 Japan Tobacco. For the Tobacco Products industry, the median Debt-to-EBITDA is 1.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Japan Tobacco's current Debt-to-EBITDA is 1.21, which is near median its own 10-year median of 1.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Japan Tobacco stock overvalued right now?
Based on GuruFocus' analysis, Japan Tobacco (JAPAF) is currently considered Modestly Overvalued. The stock's GF Value™ is $32.94, compared to a current price of $38.36 — trading 16.5% above its estimated fair value. The current Debt-to-EBITDA is 1.21, which is near median its 10-year median of 1.32 and 11.7% below the Tobacco Products industry median of 1.37. Japan Tobacco's overall GF Score™ is 75/100 with 7 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 Japan Tobacco (JAPAF), the current Debt-to-EBITDA is 1.21 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 Japan Tobacco (JAPAF) Overvalued in 2026?
Based on GuruFocus' analysis, Japan Tobacco stock appears to be overvalued.
The current stock price of $38.36 is trading 16.5% above its estimated GF Value™ of $32.94.
GuruFocus considers Japan Tobacco to be Modestly Overvalued.
Key valuation signals for JAPAF:
Debt-to-EBITDA: 1.21 (near median its 10-year median of 1.32)
GF Value™: $32.94 vs. price of $38.36 (16.5% above fair value)
Industry Position: 11.7% below the Tobacco Products median (#20 of 35)
No single metric tells the full story. See the JAPAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Japan Tobacco primarily sells cigarettes and reduced-risk products, organized in three clusters consisting of Asia (which includes its home market and countries in Asia Pacific), Western Europe, and EMA (which includes Eastern Europe, the Middle East North Africa, Turkey, Americas, and duty-free). Its leading cigarette brands include Winston (non-US), Camel (non-US), Mevius, and LD. Its reduced-risk brands include Logic in vaping, Ploom in heated tobacco, and Nordic Spirit in nicotine pouches, though these generates less than 5% of tobacco sales.
75GF Score
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