Cipla (LUX:CIPLA) Debt-to-EBITDA : 0.14 (As of Mar. 2026) — 59% Below Median

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LUX:CIPLA Cipla Ltd LUX:CIPLA
94 GF Score
Price $18.10
GF Value $20.13
! 3 Warning Signs
View Full Analysis

What is Cipla Debt-to-EBITDA?

Cipla LUX:CIPLA 94 Debt-to-EBITDA is 0.14 as of Mar. 2026, which is 59% below its 10-year median of 0.34. GuruFocus rates LUX:CIPLA with a GF Score™ of 94/100 and a GF Value™ of $20.13. The stock has 3 warning signs investors should review. Among 690 Drug Manufacturers companies, Cipla ranks better than 86.23% on this metric.

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

Cipla's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was $25 Mil. Cipla's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was $41 Mil. Cipla's annualized EBITDA for the quarter that ended in Mar. 2026 was $475 Mil. Cipla's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 0.14.

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

LUX:CIPLA' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.06   Med: 0.34   Max: 1.52
Current: 0.1

During the past 13 years, the highest Debt-to-EBITDA Ratio of Cipla was 1.52. The lowest was 0.06. And the median was 0.34.

LUX:CIPLA's Debt-to-EBITDA is ranked better than
86.23% of 690 companies
in the Drug Manufacturers industry
Industry Median: 1.67 vs LUX:CIPLA: 0.10

Cipla  (LUX:CIPLA) 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.


Cipla Debt-to-EBITDA Related Terms


Cipla Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Cipla'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.

Cipla Debt-to-EBITDA Chart

Cipla Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.23 0.16 0.08 0.06 0.10

Cipla 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 0.06 0.00 0.05 0.00 0.14

LUX:CIPLA vs ZTS, UTHR: Debt-to-EBITDA Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Cipla'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.


Cipla Debt-to-EBITDA vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Cipla's Debt-to-EBITDA distribution charts can be found below:

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


LUX:CIPLA
94GF Score
Cipla Ltd LUX:CIPLA
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Cipla Debt-to-EBITDA Calculation

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

Cipla's Debt-to-EBITDA for the fiscal year 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
=(24.976 + 41.15) / 684.723
=0.10

Cipla'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
=(24.976 + 41.15) / 475.384
=0.14

* 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 0.14 mean?
Cipla (LUX:CIPLA) has a Debt-to-EBITDA of 0.14 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 Cipla. This is 59% below median its historical median of 0.34. Over the past decade, Cipla's Debt-to-EBITDA has ranged from 0.06 to 1.52. According to the industry distribution chart, Cipla ranks #95 out of 690 companies in the Drug Manufacturers industry, placing it in the top 13.8%.
Is Cipla's Debt-to-EBITDA too high?
Cipla's current Debt-to-EBITDA of 0.14 is 59% below median its 10-year median of 0.34. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 1.52. The Drug Manufacturers industry median Debt-to-EBITDA is 1.67. Cipla's value of 0.14 is 91.6% below this industry median. Based on the distribution chart, Cipla ranks #95 out of 690 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Cipla has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does Cipla's Debt-to-EBITDA compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Cipla ranks #95 out of 690 companies for Debt-to-EBITDA. This places Cipla in the top 14% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.67. Cipla's value of 0.14 is 91.6% below this benchmark. Historically, Cipla's own Debt-to-EBITDA has ranged from 0.06 to 1.52 over the past decade. While the company's 10-year median is 0.34 vs. the industry median of 1.67, Cipla 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 Drug Manufacturers company?
The median Debt-to-EBITDA among Drug Manufacturers companies is 1.67, based on 690 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. Cipla's current Debt-to-EBITDA of 0.14 is 91.6% 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 Cipla. For the Drug Manufacturers industry, the median Debt-to-EBITDA is 1.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cipla's current Debt-to-EBITDA is 0.14, which is 59% below median its own 10-year median of 0.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cipla stock overvalued right now?
Cipla (LUX:CIPLA) has a current Debt-to-EBITDA of 0.14. The stock's GF Value™ is $20.13, compared to a current price of $18.10 — trading 10.1% below its estimated fair value. The current Debt-to-EBITDA is 0.14, which is 59% below median its 10-year median of 0.34 and 91.6% below the Drug Manufacturers industry median of 1.67. Cipla's overall GF Score™ is 94/100 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 Cipla (LUX:CIPLA), the current Debt-to-EBITDA is 0.14 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 Cipla (LUX:CIPLA) Overvalued in 2026?

Based on GuruFocus' analysis, Cipla stock appears to be undervalued. The current stock price of $18.10 is trading 10.1% below its estimated GF Value™ of $20.13.

Key valuation signals for LUX:CIPLA:

  • Debt-to-EBITDA: 0.14 (59% below median its 10-year median of 0.34)
  • GF Value™: $20.13 vs. price of $18.10 (10.1% below fair value)
  • GF Score™: 94/100 with 3 warning signs
  • Industry Position: 91.6% below the Drug Manufacturers median (#95 of 690)

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


Cipla Business Description

Other Exchanges CIPLA:India500087:India
Address Ganpatrao Kadam Marg, Cipla House, Peninsula Business Park, Lower Parel, Mumbai, MH, IND, 400 013
Cipla Ltd is a drug manufacturing company that focuses on a variety of pharmaceutical products. The company's product portfolio spans complex generics as well as drugs in the respiratory, anti-retroviral, urology, cardiology, anti-infective, CNS, and various other key therapeutic segments. The bulk of its sales are generated in India, although it maintains a large world-wide presence. Cipla's growth plan focuses on new product launches. It has two segments Pharmaceuticals and new ventures. It derives maximum revenue from Pharmaceuticals Segment.
94GF Score

Get the complete analysis for LUX:CIPLA

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

$18.10
Price
$20.13
GF Value