MichelinMEX:ML 83 Debt-to-EBITDA is 1.44 as of Dec. 2025, which is 5% below its 10-year median of 1.51. GuruFocus rates MEX:ML with a GF Score™ of 83/100 and a GF Value™ of MXN634.45. The stock has 6 warning signs investors should review. Among 1,093 Vehicles & Parts companies, Michelin ranks better than 65.14% 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 Michelin's Debt-to-EBITDA or its related term are showing as below:
MEX:ML'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.67 Med: 1.51 Max: 2.78
Current: 1.42
During the past 13 years, the highest Debt-to-EBITDA Ratio of Michelin was 2.78. The lowest was 0.67. And the median was 1.51.
MEX:ML's Debt-to-EBITDA is ranked better than 65.14% of 1093
companies
in the Vehicles & Parts industry
Industry Median: 2.24
vs MEX:ML: 1.42
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.
Michelin Debt-to-EBITDA Related Terms
Michelin Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Michelin'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.
For the Auto Parts subindustry, Michelin'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.
Michelin Debt-to-EBITDA vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Michelin's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Michelin'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 two times the quarterly (Dec. 2025) EBITDA data.
Michelin (MEX:ML) has a Debt-to-EBITDA of 1.44 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Michelin. This is near median its historical median of 1.51. Over the past decade, Michelin's Debt-to-EBITDA has ranged from 0.67 to 2.78. According to the industry distribution chart, Michelin ranks #381 out of 1093 companies in the Vehicles & Parts industry, placing it in the top 34.9%.
Is Michelin's Debt-to-EBITDA too high?
Michelin's current Debt-to-EBITDA of 1.44 is near median its 10-year median of 1.51. Over the past 10 years, this metric has ranged from a low of 0.67 to a high of 2.78. The Vehicles & Parts industry median Debt-to-EBITDA is 2.24. Michelin's value of 1.44 is 35.7% below this industry median. Based on the distribution chart, Michelin ranks #381 out of 1093 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Michelin has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Michelin's Debt-to-EBITDA compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Michelin ranks #381 out of 1093 companies for Debt-to-EBITDA. This puts Michelin in the upper half of its industry. The industry median Debt-to-EBITDA is 2.24. Michelin's value of 1.44 is 35.7% below this benchmark. Historically, Michelin's own Debt-to-EBITDA has ranged from 0.67 to 2.78 over the past decade. While the company's 10-year median is 1.51 vs. the industry median of 2.24, Michelin 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 Vehicles & Parts company?
The median Debt-to-EBITDA among Vehicles & Parts companies is 2.24, based on 1,093 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. Michelin's current Debt-to-EBITDA of 1.44 is 35.7% 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 Michelin. For the Vehicles & Parts industry, the median Debt-to-EBITDA is 2.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Michelin's current Debt-to-EBITDA is 1.44, which is near median its own 10-year median of 1.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Michelin stock overvalued right now?
Michelin (MEX:ML) has a current Debt-to-EBITDA of 1.44. The stock's GF Value™ is MXN634.45, compared to a current price of MXN733.29 — trading 15.6% above its estimated fair value. The current Debt-to-EBITDA is 1.44, which is near median its 10-year median of 1.51 and 35.7% below the Vehicles & Parts industry median of 2.24. Michelin's overall GF Score™ is 83/100 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 Michelin (MEX:ML), the current Debt-to-EBITDA is 1.44 as of Dec. 2025. 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 Michelin (MEX:ML) Overvalued in 2026?
Based on GuruFocus' analysis, Michelin stock appears to be overvalued.
The current stock price of MXN733.29 is trading 15.6% above its estimated GF Value™ of MXN634.45.
Key valuation signals for MEX:ML:
Debt-to-EBITDA: 1.44 (near median its 10-year median of 1.51)
GF Value™: MXN634.45 vs. price of MXN733.29 (15.6% above fair value)
Industry Position: 35.7% below the Vehicles & Parts median (#381 of 1093)
No single metric tells the full story. See the MEX:ML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Michelin manufactures tires for passenger vehicles. The company also makes tires for all types of commercial vehicles as well as bicycle, motorcycle, earthmover, aviation, and agricultural tires. Its operations are organized into three operating segments namely Automotive and two-wheel; Road transportation; and Specialty businesses. The company generates maximum revenue from Automotive segments. The Specialty businesses include the Mining, Beyond-road, Two-wheel and Aircraft tire activities, as well as the High-Tech Materials activities. The Services & Solutions businesses are included for the majority part in the Road transportation and related distribution segment.
83GF Score
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