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 Cloudflare's Debt-to-EBITDA or its related term are showing as below:
NET'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -39.68 Med: -0.16 Max: 33.25
Current: 25.56
During the past 10 years, the highest Debt-to-EBITDA Ratio of Cloudflare was 33.25. The lowest was -39.68. And the median was -0.16.
NET's Debt-to-EBITDA is ranked worse than 98.12% of 1702
companies
in the Software industry
Industry Median: 1.095
vs NET: 25.56
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.
Cloudflare Debt-to-EBITDA Related Terms
Cloudflare Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Cloudflare'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.
NET vs SNPS, FTNT, CRWV: Debt-to-EBITDA Comparison
For the Software - Infrastructure subindustry, Cloudflare'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.
Cloudflare Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Cloudflare's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Cloudflare'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.
Cloudflare (NET) has a Debt-to-EBITDA of 22.61 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 Cloudflare. According to the industry distribution chart, Cloudflare ranks #1670 out of 1702 companies in the Software industry, placing it in the top 98.1%.
Is Cloudflare's Debt-to-EBITDA too high?
Cloudflare's current Debt-to-EBITDA is 22.61. The Software industry median Debt-to-EBITDA is 1.10. Cloudflare's value of 22.61 is 1964.8% above this industry median. Based on the distribution chart, Cloudflare ranks #1670 out of 1702 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Cloudflare has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cloudflare's Debt-to-EBITDA compare to SNPS and FTNT?
According to the Software industry distribution chart, Cloudflare ranks #1670 out of 1702 companies for Debt-to-EBITDA. This places Cloudflare in the lower half of its industry. The industry median Debt-to-EBITDA is 1.10. Cloudflare's value of 22.61 is 1964.8% above this benchmark. 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 Software company?
The median Debt-to-EBITDA among Software companies is 1.10, based on 1,702 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. Cloudflare's current Debt-to-EBITDA of 22.61 is 1964.8% 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 Cloudflare. For the Software industry, the median Debt-to-EBITDA is 1.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cloudflare's current Debt-to-EBITDA is 22.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cloudflare stock overvalued right now?
Based on GuruFocus' analysis, Cloudflare (NET) is currently considered Significantly Overvalued. The stock's GF Value™ is $170.54, compared to a current price of $226.65 — trading 32.9% above its estimated fair value. The current Debt-to-EBITDA is 22.61 and 1964.8% above the Software industry median of 1.10. Cloudflare's overall GF Score™ is 78/100 with 2 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 Cloudflare (NET), the current Debt-to-EBITDA is 22.61 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 Cloudflare (NET) Overvalued in 2026?
Based on GuruFocus' analysis, Cloudflare stock appears to be overvalued.
The current stock price of $226.65 is trading 32.9% above its estimated GF Value™ of $170.54.
GuruFocus considers Cloudflare to be Significantly Overvalued.
Key valuation signals for NET:
Debt-to-EBITDA: 22.61
GF Value™: $170.54 vs. price of $226.65 (32.9% above fair value)
Industry Position: 1964.8% above the Software median (#1670 of 1702)
No single metric tells the full story. See the NET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, builds on this infrastructure by enabling clients to deploy and run code without the need to manage or maintain servers.
78GF Score
Get the complete analysis for NET
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NET has been successfully added to your 
