Cherat Cement Co (KAR:CHCC) Debt-to-EBITDA : 0.33 (As of Mar. 2026) — 82% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
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.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
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.

KAR:CHCC Cherat Cement Co Ltd KAR:CHCC
89 GF Score
Price ₨329.81
GF Value ₨251.73
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Cherat Cement Co Debt-to-EBITDA?

Cherat Cement Co KAR:CHCC -0.07% 89 Debt-to-EBITDA is 0.33 as of Mar. 2026, which is 82% below its 10-year median of 1.84. GuruFocus rates KAR:CHCC with a GF Score™ of 89/100 and a GF Value™ of ₨251.73 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 337 Building Materials companies, Cherat Cement Co ranks better than 83.38% on this metric.

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

Cherat Cement Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₨1,446 Mil. Cherat Cement Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₨2,303 Mil. Cherat Cement Co's annualized EBITDA for the quarter that ended in Mar. 2026 was ₨11,330 Mil. Cherat Cement Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 0.33.

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 Cherat Cement Co's Debt-to-EBITDA or its related term are showing as below:

KAR:CHCC' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.27   Med: 1.84   Max: 12.91
Current: 0.27

During the past 13 years, the highest Debt-to-EBITDA Ratio of Cherat Cement Co was 12.91. The lowest was 0.27. And the median was 1.84.

KAR:CHCC's Debt-to-EBITDA is ranked better than
83.38% of 337 companies
in the Building Materials industry
Industry Median: 2.17 vs KAR:CHCC: 0.27

Cherat Cement Co  (KAR:CHCC) 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.


Cherat Cement Co Debt-to-EBITDA Related Terms


Cherat Cement Co Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Cherat Cement 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.

Cherat Cement Co Debt-to-EBITDA Chart

Cherat Cement Co Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.27 1.65 1.02 0.38 0.36

Cherat Cement Co 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 0.41 0.39 0.31 0.35 0.33

KAR:CHCC vs CRH, VMC, MLM: Debt-to-EBITDA Comparison

For the Building Materials subindustry, Cherat Cement 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.


Cherat Cement Co Debt-to-EBITDA vs Building Materials Industry

For the Building Materials industry and Basic Materials sector, Cherat Cement Co's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Cherat Cement Co's Debt-to-EBITDA falls into.


KAR:CHCC
89GF Score
Cherat Cement Co Ltd KAR:CHCC
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cherat Cement Co Debt-to-EBITDA Calculation

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

Cherat Cement Co'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
=(2928.181 + 2550.388) / 15254.394
=0.36

Cherat Cement Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1446.086 + 2303.078) / 11330.12
=0.33

* 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.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.33 mean?
Cherat Cement Co (KAR:CHCC) has a Debt-to-EBITDA of 0.33 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 Cherat Cement Co. This is 82% below median its historical median of 1.84. Over the past decade, Cherat Cement Co's Debt-to-EBITDA has ranged from 0.27 to 12.91. According to the industry distribution chart, Cherat Cement Co ranks #56 out of 337 companies in the Building Materials industry, placing it in the top 16.6%.
Is Cherat Cement Co's Debt-to-EBITDA too high?
Cherat Cement Co's current Debt-to-EBITDA of 0.33 is 82% below median its 10-year median of 1.84. Over the past 10 years, this metric has ranged from a low of 0.27 to a high of 12.91. The Building Materials industry median Debt-to-EBITDA is 2.17. Cherat Cement Co's value of 0.33 is 84.8% below this industry median. Based on the distribution chart, Cherat Cement Co ranks #56 out of 337 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Cherat Cement Co has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cherat Cement Co's Debt-to-EBITDA compare to CRH and VMC?
According to the Building Materials industry distribution chart, Cherat Cement Co ranks #56 out of 337 companies for Debt-to-EBITDA. This places Cherat Cement Co in the top 17% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 2.17. Cherat Cement Co's value of 0.33 is 84.8% below this benchmark. Historically, Cherat Cement Co's own Debt-to-EBITDA has ranged from 0.27 to 12.91 over the past decade. While the company's 10-year median is 1.84 vs. the industry median of 2.17, Cherat Cement Co 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 Building Materials company?
The median Debt-to-EBITDA among Building Materials companies is 2.17, based on 337 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. Cherat Cement Co's current Debt-to-EBITDA of 0.33 is 84.8% 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 Cherat Cement Co. For the Building Materials industry, the median Debt-to-EBITDA is 2.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cherat Cement Co's current Debt-to-EBITDA is 0.33, which is 82% below median its own 10-year median of 1.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cherat Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Cherat Cement Co (KAR:CHCC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨251.73, compared to a current price of ₨329.81 — trading 31% above its estimated fair value. The current Debt-to-EBITDA is 0.33, which is 82% below median its 10-year median of 1.84 and 84.8% below the Building Materials industry median of 2.17. Cherat Cement Co's overall GF Score™ is 89/100 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 Cherat Cement Co (KAR:CHCC), the current Debt-to-EBITDA is 0.33 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 Cherat Cement Co (KAR:CHCC) Overvalued in 2026?

Based on GuruFocus' analysis, Cherat Cement Co stock appears to be overvalued. The current stock price of ₨329.81 is trading 31% above its estimated GF Value™ of ₨251.73. GuruFocus considers Cherat Cement Co to be Significantly Overvalued.

Key valuation signals for KAR:CHCC:

  • Debt-to-EBITDA: 0.33 (82% below median its 10-year median of 1.84)
  • GF Value™: ₨251.73 vs. price of ₨329.81 (31% above fair value)
  • GF Score™: 89/100 with 3 warning signs
  • Industry Position: 84.8% below the Building Materials median (#56 of 337)

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


Cherat Cement Co Business Description

Address Beaumont Road, Modern Motors House, Karachi, SD, PAK, 75530
Cherat Cement Co Ltd is a Ghulam Faruque Group (GFG) Company. Its main business activity is the manufacturing, marketing, and sale of cement. The main product is ordinary Portland Cement, branded as Cherat, with the introduction of composite Cement named Cherat Khyber. The manufacturing plant is located in Village Lakrai, District Nowshera, Khyber Pakhtunkhwa, Pakistan. The product is actively exported to the Afghanistan market.
89GF Score

Get the complete analysis for KAR:CHCC

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

₨329.81
Price
₨251.73
GF Value