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Methode ElectronicsMEI -0.20%62 Debt-to-EBITDA is 2.62 as of Apr. 2026, which is 64% above its 10-year median of 1.60. GuruFocus rates MEI with a GF Score™ of 62/100 and a GF Value™ of $9.95 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,794 Hardware companies, Methode Electronics ranks worse than 78.15% 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 Methode Electronics's Debt-to-EBITDA or its related term are showing as below:
MEI'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -6.7 Med: 1.6 Max: 11.29
Current: 4.88
During the past 13 years, the highest Debt-to-EBITDA Ratio of Methode Electronics was 11.29. The lowest was -6.70. And the median was 1.60.
MEI's Debt-to-EBITDA is ranked worse than 78.15% of 1794
companies
in the Hardware industry
Industry Median: 1.71
vs MEI: 4.88
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.
Methode Electronics Debt-to-EBITDA Related Terms
Methode Electronics Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Methode Electronics'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.
MEI vs KOPN, LPTH, MPTI: Debt-to-EBITDA Comparison
For the Electronic Components subindustry, Methode Electronics'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.
Methode Electronics Debt-to-EBITDA vs Hardware Industry
For the Hardware industry and Technology sector, Methode Electronics's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Methode Electronics'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 (Apr. 2026) EBITDA data.
Methode Electronics (MEI) has a Debt-to-EBITDA of 2.62 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Methode Electronics. This is 64% above median its historical median of 1.60. According to the industry distribution chart, Methode Electronics ranks #1402 out of 1794 companies in the Hardware industry, placing it in the top 78.1%.
Is Methode Electronics' Debt-to-EBITDA too high?
Methode Electronics' current Debt-to-EBITDA of 2.62 is 64% above median its 10-year median of 1.60. The Hardware industry median Debt-to-EBITDA is 1.71. Methode Electronics' value of 2.62 is 53.2% above this industry median. Based on the distribution chart, Methode Electronics ranks #1402 out of 1794 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Methode Electronics has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Methode Electronics' Debt-to-EBITDA compare to KOPN and LPTH?
According to the Hardware industry distribution chart, Methode Electronics ranks #1402 out of 1794 companies for Debt-to-EBITDA. This places Methode Electronics in the lower half of its industry. The industry median Debt-to-EBITDA is 1.71. Methode Electronics' value of 2.62 is 53.2% above this benchmark. While the company's 10-year median is 1.60 vs. the industry median of 1.71, Methode Electronics 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 Hardware company?
The median Debt-to-EBITDA among Hardware companies is 1.71, based on 1,794 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. Methode Electronics's current Debt-to-EBITDA of 2.62 is 53.2% 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 Methode Electronics. For the Hardware industry, the median Debt-to-EBITDA is 1.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Methode Electronics's current Debt-to-EBITDA is 2.62, which is 64% above median its own 10-year median of 1.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Methode Electronics stock overvalued right now?
Based on GuruFocus' analysis, Methode Electronics (MEI) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.95, compared to a current price of $15.28 — trading 53.6% above its estimated fair value. The current Debt-to-EBITDA is 2.62, which is 64% above median its 10-year median of 1.60 and 53.2% above the Hardware industry median of 1.71. Methode Electronics' overall GF Score™ is 62/100 with 4 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 Methode Electronics (MEI), the current Debt-to-EBITDA is 2.62 as of Apr. 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 Methode Electronics (MEI) Overvalued in 2026?
Based on GuruFocus' analysis, Methode Electronics stock appears to be overvalued.
The current stock price of $15.28 is trading 53.6% above its estimated GF Value™ of $9.95.
GuruFocus considers Methode Electronics to be Significantly Overvalued.
Key valuation signals for MEI:
Debt-to-EBITDA: 2.62 (64% above median its 10-year median of 1.60)
GF Value™: $9.95 vs. price of $15.28 (53.6% above fair value)
Industry Position: 53.2% above the Hardware median (#1402 of 1794)
No single metric tells the full story. See the MEI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Methode Electronics Inc supplier of custom-engineered solutions with sales, engineering, and manufacturing locations in North America, Europe, the Middle East, and Asia. It designs, engineers, and produces mechatronic products for Original Equipment Manufacturers (OEMs) utilizing a broad range of technologies for user interface, light-emitting diode (LED) lighting systems, power distribution, and sensor applications. The firm is organized into various business segments: Automotive, Industrial, Interface, and Medical. The Automotive segment, which generates maximum revenue, supplies electronic and electro-mechanical devices and related products to automobiles, including overhead and center consoles, hidden and ergonomic switches, insert molded components, LED-based lighting, and sensors.
62GF Score
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