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SafaricomNAI:SCOM 100 Debt-to-EBITDA is 0.71 as of Mar. 2026, which is 78% above its 10-year median of 0.40. GuruFocus rates NAI:SCOM with a GF Score™ of 100/100 and a GF Value™ of KES22.11 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 303 Telecommunication Services companies, Safaricom ranks better than 80.86% 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 Safaricom's Debt-to-EBITDA or its related term are showing as below:
NAI:SCOM'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.03 Med: 0.4 Max: 0.88
Current: 0.76
During the past 13 years, the highest Debt-to-EBITDA Ratio of Safaricom was 0.88. The lowest was 0.03. And the median was 0.40.
NAI:SCOM's Debt-to-EBITDA is ranked better than 80.86% of 303
companies
in the Telecommunication Services industry
Industry Median: 1.94
vs NAI:SCOM: 0.76
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.
Safaricom Debt-to-EBITDA Related Terms
Safaricom Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Safaricom'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.
NAI:SCOM vs VZ, TMUS, T: Debt-to-EBITDA Comparison
For the Telecom Services subindustry, Safaricom'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.
Safaricom Debt-to-EBITDA vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Safaricom's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Safaricom'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 (Mar. 2026) EBITDA data.
Safaricom (NAI:SCOM) has a Debt-to-EBITDA of 0.71 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 Safaricom. This is 78% above median its historical median of 0.40. Over the past decade, Safaricom's Debt-to-EBITDA has ranged from 0.03 to 0.88. According to the industry distribution chart, Safaricom ranks #58 out of 303 companies in the Telecommunication Services industry, placing it in the top 19.1%.
Is Safaricom's Debt-to-EBITDA too high?
Safaricom's current Debt-to-EBITDA of 0.71 is 78% above median its 10-year median of 0.40. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.88. The Telecommunication Services industry median Debt-to-EBITDA is 1.94. Safaricom's value of 0.71 is 63.4% below this industry median. Based on the distribution chart, Safaricom ranks #58 out of 303 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Safaricom has a GF Score™ of 100/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Safaricom's Debt-to-EBITDA compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Safaricom ranks #58 out of 303 companies for Debt-to-EBITDA. This places Safaricom in the top 19% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.94. Safaricom's value of 0.71 is 63.4% below this benchmark. Historically, Safaricom's own Debt-to-EBITDA has ranged from 0.03 to 0.88 over the past decade. While the company's 10-year median is 0.40 vs. the industry median of 1.94, Safaricom 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 Telecommunication Services company?
The median Debt-to-EBITDA among Telecommunication Services companies is 1.94, based on 303 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. Safaricom's current Debt-to-EBITDA of 0.71 is 63.4% 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 Safaricom. For the Telecommunication Services industry, the median Debt-to-EBITDA is 1.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Safaricom's current Debt-to-EBITDA is 0.71, which is 78% above median its own 10-year median of 0.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safaricom stock overvalued right now?
Based on GuruFocus' analysis, Safaricom (NAI:SCOM) is currently considered Significantly Overvalued. The stock's GF Value™ is KES22.11, compared to a current price of KES35.40 — trading 60.1% above its estimated fair value. The current Debt-to-EBITDA is 0.71, which is 78% above median its 10-year median of 0.40 and 63.4% below the Telecommunication Services industry median of 1.94. Safaricom's overall GF Score™ is 100/100 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 Safaricom (NAI:SCOM), the current Debt-to-EBITDA is 0.71 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 Safaricom (NAI:SCOM) Overvalued in 2026?
Based on GuruFocus' analysis, Safaricom stock appears to be overvalued.
The current stock price of KES35.40 is trading 60.1% above its estimated GF Value™ of KES22.11.
GuruFocus considers Safaricom to be Significantly Overvalued.
Key valuation signals for NAI:SCOM:
Debt-to-EBITDA: 0.71 (78% above median its 10-year median of 0.40)
GF Value™: KES22.11 vs. price of KES35.40 (60.1% above fair value)
Industry Position: 63.4% below the Telecommunication Services median (#58 of 303)
No single metric tells the full story. See the NAI:SCOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Safaricom PLC is a Kenya-based telecommunications company. The principal activities of the company are the provision of telecommunication services, providing a comprehensive range of integrated telecommunication services including voice and data both mobile and fixed, SMS, the internet, and m-pesa. The company also offers a wide range of devices such as Mobile handsets, mobile broadband modems, routers, tablets, and notebooks. The majority of its revenue comes from service revenues: Voice, m-pesa, mobile data, messaging, fixed data and other service revenue. The company serves both individual and corporate/enterprise customers.
100GF Score
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