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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 Sonal Mercantile's Debt-to-EBITDA or its related term are showing as below:
NSE:SONAL'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 18.38 Med: 20.86 Max: 64.04
Current: 18.99
During the past 13 years, the highest Debt-to-EBITDA Ratio of Sonal Mercantile was 64.04. The lowest was 18.38. And the median was 20.86.
NSE:SONAL's Debt-to-EBITDA is ranked worse than 74.13% of 286
companies
in the Credit Services industry
Industry Median: 8.745
vs NSE:SONAL: 18.99
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.
Sonal Mercantile Debt-to-EBITDA Related Terms
Sonal Mercantile Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Sonal Mercantile'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 Credit Services subindustry, Sonal Mercantile'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.
Sonal Mercantile Debt-to-EBITDA vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Sonal Mercantile's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Sonal Mercantile'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 (Jun. 2026) EBITDA data.
Sonal Mercantile (NSE:SONAL) has a Debt-to-EBITDA of 0.00 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Sonal Mercantile. Over the past decade, Sonal Mercantile's Debt-to-EBITDA has ranged from 18.38 to 64.04. According to the industry distribution chart, Sonal Mercantile ranks #212 out of 286 companies in the Credit Services industry, placing it in the top 74.1%.
Is Sonal Mercantile's Debt-to-EBITDA too high?
Sonal Mercantile's current Debt-to-EBITDA is 0.00. Over the past 10 years, this metric has ranged from a low of 18.38 to a high of 64.04. Based on the distribution chart, Sonal Mercantile ranks #212 out of 286 companies in the Credit Services industry, which is below the industry midpoint. Overall, Sonal Mercantile has a GF Score™ of 66/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonal Mercantile's Debt-to-EBITDA compare to ?
According to the Credit Services industry distribution chart, Sonal Mercantile ranks #212 out of 286 companies for Debt-to-EBITDA. This places Sonal Mercantile in the lower half of its industry. The industry median Debt-to-EBITDA is 8.75. Historically, Sonal Mercantile's own Debt-to-EBITDA has ranged from 18.38 to 64.04 over the past decade. 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 Credit Services company?
The median Debt-to-EBITDA among Credit Services companies is 8.75, based on 286 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. 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 Sonal Mercantile. For the Credit Services industry, the median Debt-to-EBITDA is 8.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonal Mercantile's current Debt-to-EBITDA is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonal Mercantile stock overvalued right now?
Based on GuruFocus' analysis, Sonal Mercantile (NSE:SONAL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹112.61, compared to a current price of ₹90.46 — trading 19.7% below its estimated fair value. The current Debt-to-EBITDA is 0.00. Sonal Mercantile's overall GF Score™ is 66/100 with 3 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 Sonal Mercantile (NSE:SONAL), the current Debt-to-EBITDA is 0.00 as of Jun. 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 Sonal Mercantile (NSE:SONAL) Overvalued in 2026?
Based on GuruFocus' analysis, Sonal Mercantile stock appears to be undervalued.
The current stock price of ₹90.46 is trading 19.7% below its estimated GF Value™ of ₹112.61.
GuruFocus considers Sonal Mercantile to be Modestly Undervalued.
Key valuation signals for NSE:SONAL:
Debt-to-EBITDA: 0.00
GF Value™: ₹112.61 vs. price of ₹90.46 (19.7% below fair value)
No single metric tells the full story. See the NSE:SONAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonal Mercantile Ltd is an India-based non-banking financial company. It is engaged in providing secured and unsecured loans and advances and is also involved in investing in quoted and unquoted securities in the stock and commodity markets. The company offers inter-corporate loans, personal loans, long-term and short-term loans, Trade financing, Bills Discounting, Project Appraisal, Loans against Guarantees, and Properties.
66GF Score
Get the complete analysis for NSE:SONAL
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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