REACT Group (LSE:REAT) Debt-to-EBITDA : 1.38 (As of Mar. 2026) — 151% Above 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.

LSE:REAT REACT Group PLC LSE:REAT
44 GF Score
Price £0.43
GF Value £0.82
Valuation Significantly Undervalued
! 6 Warning Signs
View Full Analysis

What is REACT Group Debt-to-EBITDA?

REACT Group LSE:REAT 44 Debt-to-EBITDA is 1.38 as of Mar. 2026, which is 151% above its 10-year median of 0.55. GuruFocus rates LSE:REAT with a GF Score™ of 44/100 and a GF Value™ of £0.82 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 834 Business Services companies, REACT Group ranks better than 56.12% on this metric.

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

REACT Group's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was £1.60 Mil. REACT Group's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was £2.04 Mil. REACT Group's annualized EBITDA for the quarter that ended in Mar. 2026 was £2.64 Mil. REACT Group's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 1.38.

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 REACT Group's Debt-to-EBITDA or its related term are showing as below:

LSE:REAT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.17   Med: 0.55   Max: 2.64
Current: 1.28

During the past 13 years, the highest Debt-to-EBITDA Ratio of REACT Group was 2.64. The lowest was 0.17. And the median was 0.55.

LSE:REAT's Debt-to-EBITDA is ranked better than
56.12% of 834 companies
in the Business Services industry
Industry Median: 1.655 vs LSE:REAT: 1.28

REACT Group  (LSE:REAT) 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.


REACT Group Debt-to-EBITDA Related Terms


REACT Group Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for REACT Group'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.

REACT Group Debt-to-EBITDA Chart

REACT Group Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.43 2.64 0.67 0.38 1.56

REACT Group Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 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 0.34 0.46 2.08 1.36 1.38

LSE:REAT vs CTAS, CPRT, GPN: Debt-to-EBITDA Comparison

For the Specialty Business Services subindustry, REACT Group'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.


REACT Group Debt-to-EBITDA vs Business Services Industry

For the Business Services industry and Industrials sector, REACT Group's Debt-to-EBITDA distribution charts can be found below:

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


LSE:REAT
44GF Score
REACT Group PLC LSE:REAT
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

REACT Group Debt-to-EBITDA Calculation

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

REACT Group's Debt-to-EBITDA for the fiscal year that ended in Sep. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1.583 + 2.553) / 2.659
=1.56

REACT Group'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
=(1.602 + 2.035) / 2.638
=1.38

* 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 two times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 1.38 mean?
REACT Group (LSE:REAT) has a Debt-to-EBITDA of 1.38 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 REACT Group. This is 151% above median its historical median of 0.55. Over the past decade, REACT Group's Debt-to-EBITDA has ranged from 0.17 to 2.64. According to the industry distribution chart, REACT Group ranks #366 out of 834 companies in the Business Services industry, placing it in the top 43.9%.
Is REACT Group's Debt-to-EBITDA too high?
REACT Group's current Debt-to-EBITDA of 1.38 is 151% above median its 10-year median of 0.55. Over the past 10 years, this metric has ranged from a low of 0.17 to a high of 2.64. The Business Services industry median Debt-to-EBITDA is 1.66. REACT Group's value of 1.38 is 16.6% below this industry median. Based on the distribution chart, REACT Group ranks #366 out of 834 companies in the Business Services industry, which is above the industry midpoint. Overall, REACT Group has a GF Score™ of 44/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does REACT Group's Debt-to-EBITDA compare to CTAS and CPRT?
According to the Business Services industry distribution chart, REACT Group ranks #366 out of 834 companies for Debt-to-EBITDA. This puts REACT Group in the upper half of its industry. The industry median Debt-to-EBITDA is 1.66. REACT Group's value of 1.38 is 16.6% below this benchmark. Historically, REACT Group's own Debt-to-EBITDA has ranged from 0.17 to 2.64 over the past decade. While the company's 10-year median is 0.55 vs. the industry median of 1.66, REACT Group 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 Business Services company?
The median Debt-to-EBITDA among Business Services companies is 1.66, based on 834 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. REACT Group's current Debt-to-EBITDA of 1.38 is 16.6% 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 REACT Group. For the Business Services industry, the median Debt-to-EBITDA is 1.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REACT Group's current Debt-to-EBITDA is 1.38, which is 151% above median its own 10-year median of 0.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REACT Group stock overvalued right now?
Based on GuruFocus' analysis, REACT Group (LSE:REAT) is currently considered Significantly Undervalued. The stock's GF Value™ is £0.82, compared to a current price of £0.43 — trading 48.2% below its estimated fair value. The current Debt-to-EBITDA is 1.38, which is 151% above median its 10-year median of 0.55 and 16.6% below the Business Services industry median of 1.66. REACT Group's overall GF Score™ is 44/100 with 6 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 REACT Group (LSE:REAT), the current Debt-to-EBITDA is 1.38 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 REACT Group (LSE:REAT) Overvalued in 2026?

Based on GuruFocus' analysis, REACT Group stock appears to be undervalued. The current stock price of £0.43 is trading 48.2% below its estimated GF Value™ of £0.82. GuruFocus considers REACT Group to be Significantly Undervalued.

Key valuation signals for LSE:REAT:

  • Debt-to-EBITDA: 1.38 (151% above median its 10-year median of 0.55)
  • GF Value™: £0.82 vs. price of £0.43 (48.2% below fair value)
  • GF Score™: 44/100 with 6 warning signs
  • Industry Position: 16.6% below the Business Services median (#366 of 834)

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


REACT Group Business Description

Address Holly House, Shady Lane, Birmingham, GBR, B44 9ER
REACT Group PLC is engaged in providing cleaning, decontamination, hygiene services, drainage and plumbing including both contracted commercial cleaning and specialist emergency decontamination work. Its objective is to maintain and/or rapidly return its customer's property to safe, clean, operational use and do this through regular specialist cleaning and/or emergency response to potentially harmful incidents. The business operates through three divisions; commercial windows & cladding, hygiene & maintenance, and, emergency & decontamination. It has three operating segments; Contract Maintenance, Contract Reactive, and Ad Hoc work, out of which a majority of the revenue is generated from the contract maintenance segment.
44GF Score

Get the complete analysis for LSE:REAT

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

£0.43
Price
£0.82
GF Value