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Localiza Rent A CarLZRFY +1.92%90 Debt-to-EBITDA is 2.39 as of Mar. 2026, which is 38% below its 10-year median of 3.86. GuruFocus rates LZRFY with a GF Score™ of 90/100 and a GF Value™ of $11.58 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 834 Business Services companies, Localiza Rent A Car ranks worse than 69.18% 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 Localiza Rent A Car's Debt-to-EBITDA or its related term are showing as below:
LZRFY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 2.92 Med: 3.86 Max: 4.54
Current: 2.92
During the past 13 years, the highest Debt-to-EBITDA Ratio of Localiza Rent A Car was 4.54. The lowest was 2.92. And the median was 3.86.
LZRFY's Debt-to-EBITDA is ranked worse than 69.18% of 834
companies
in the Business Services industry
Industry Median: 1.66
vs LZRFY: 2.92
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.
Localiza Rent A Car Debt-to-EBITDA Related Terms
Localiza Rent A Car Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Localiza Rent A Car'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.
LZRFY vs URI, SUNB, AER: Debt-to-EBITDA Comparison
For the Rental & Leasing Services subindustry, Localiza Rent A Car'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.
Localiza Rent A Car Debt-to-EBITDA vs Business Services Industry
For the Business Services industry and Industrials sector, Localiza Rent A Car's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Localiza Rent A Car'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.
Localiza Rent A Car (LZRFY) has a Debt-to-EBITDA of 2.39 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 Localiza Rent A Car. This is 38% below median its historical median of 3.86. Over the past decade, Localiza Rent A Car's Debt-to-EBITDA has ranged from 2.92 to 4.54. According to the industry distribution chart, Localiza Rent A Car ranks #577 out of 834 companies in the Business Services industry, placing it in the top 69.2%.
Is Localiza Rent A Car's Debt-to-EBITDA too high?
Localiza Rent A Car's current Debt-to-EBITDA of 2.39 is 38% below median its 10-year median of 3.86. Over the past 10 years, this metric has ranged from a low of 2.92 to a high of 4.54. The Business Services industry median Debt-to-EBITDA is 1.66. Localiza Rent A Car's value of 2.39 is 44% above this industry median. Based on the distribution chart, Localiza Rent A Car ranks #577 out of 834 companies in the Business Services industry, which is below the industry midpoint. Overall, Localiza Rent A Car has a GF Score™ of 90/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Localiza Rent A Car's Debt-to-EBITDA compare to URI and SUNB?
According to the Business Services industry distribution chart, Localiza Rent A Car ranks #577 out of 834 companies for Debt-to-EBITDA. This places Localiza Rent A Car in the lower half of its industry. The industry median Debt-to-EBITDA is 1.66. Localiza Rent A Car's value of 2.39 is 44% above this benchmark. Historically, Localiza Rent A Car's own Debt-to-EBITDA has ranged from 2.92 to 4.54 over the past decade. While the company's 10-year median is 3.86 vs. the industry median of 1.66, Localiza Rent A Car 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 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. Localiza Rent A Car's current Debt-to-EBITDA of 2.39 is 44% 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 Localiza Rent A Car. 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. Localiza Rent A Car's current Debt-to-EBITDA is 2.39, which is 38% below median its own 10-year median of 3.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Localiza Rent A Car stock overvalued right now?
Based on GuruFocus' analysis, Localiza Rent A Car (LZRFY) is currently considered Possible Value Trap. The stock's GF Value™ is $11.58, compared to a current price of $7.45 — trading 35.7% below its estimated fair value. The current Debt-to-EBITDA is 2.39, which is 38% below median its 10-year median of 3.86 and 44% above the Business Services industry median of 1.66. Localiza Rent A Car's overall GF Score™ is 90/100 with 9 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 Localiza Rent A Car (LZRFY), the current Debt-to-EBITDA is 2.39 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 Localiza Rent A Car (LZRFY) Overvalued in 2026?
Based on GuruFocus' analysis, Localiza Rent A Car stock appears to be undervalued.
The current stock price of $7.45 is trading 35.7% below its estimated GF Value™ of $11.58.
GuruFocus considers Localiza Rent A Car to be Possible Value Trap.
Key valuation signals for LZRFY:
Debt-to-EBITDA: 2.39 (38% below median its 10-year median of 3.86)
GF Value™: $11.58 vs. price of $7.45 (35.7% below fair value)
Industry Position: 44% above the Business Services median (#577 of 834)
No single metric tells the full story. See the LZRFY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Localiza Rent A Car SA is a car rental service provider with the majority of its operations in Brazil. Through its subsidiaries, the company rents cars to individuals, manages corporate car fleets, sells its decommissioned fleet, and operates a franchise business. The company has two reportable operating segments: Car Rental and Fleet Management. Maximum revenue is generated from the Car Rental segment, which is responsible for car rentals and for stipulating insurance and managing car claims for insurance companies. This segment is also responsible for the administration and granting of franchises and the right to use the Localiza brand in geographically defined markets. Geographically, the company operates across different regions in Latin America.
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