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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 Tera Software's Debt-to-EBITDA or its related term are showing as below:
NSE:TERASOFT'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.97 Med: 2.7 Max: 7
Current: 0.97
During the past 13 years, the highest Debt-to-EBITDA Ratio of Tera Software was 7.00. The lowest was 0.97. And the median was 2.70.
NSE:TERASOFT's Debt-to-EBITDA is ranked better than 50.52% of 1736
companies
in the Software industry
Industry Median: 0.98
vs NSE:TERASOFT: 0.97
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.
Tera Software Debt-to-EBITDA Related Terms
Tera Software Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Tera Software'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.
NSE:TERASOFT vs IBM, ACN, FISV: Debt-to-EBITDA Comparison
For the Information Technology Services subindustry, Tera Software'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.
Tera Software Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Tera Software's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Tera Software'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.
Tera Software (NSE:TERASOFT) 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 Tera Software. Over the past decade, Tera Software's Debt-to-EBITDA has ranged from 0.97 to 7.00. According to the industry distribution chart, Tera Software ranks #859 out of 1736 companies in the Software industry, placing it in the top 49.5%.
Is Tera Software's Debt-to-EBITDA too high?
Tera Software's current Debt-to-EBITDA is 0.00. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 7.00. Based on the distribution chart, Tera Software ranks #859 out of 1736 companies in the Software industry, which is above the industry midpoint. Overall, Tera Software has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tera Software's Debt-to-EBITDA compare to IBM and ACN?
According to the Software industry distribution chart, Tera Software ranks #859 out of 1736 companies for Debt-to-EBITDA. This puts Tera Software in the upper half of its industry. The industry median Debt-to-EBITDA is 0.98. Historically, Tera Software's own Debt-to-EBITDA has ranged from 0.97 to 7.00 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 Software company?
The median Debt-to-EBITDA among Software companies is 0.98, based on 1,736 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 Tera Software. For the Software industry, the median Debt-to-EBITDA is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tera Software'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 Tera Software stock overvalued right now?
Based on GuruFocus' analysis, Tera Software (NSE:TERASOFT) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹450.78, compared to a current price of ₹321.75 — trading 28.6% below its estimated fair value. The current Debt-to-EBITDA is 0.00. Tera Software's overall GF Score™ is 81/100 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 Tera Software (NSE:TERASOFT), 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 Tera Software (NSE:TERASOFT) Overvalued in 2026?
Based on GuruFocus' analysis, Tera Software stock appears to be undervalued.
The current stock price of ₹321.75 is trading 28.6% below its estimated GF Value™ of ₹450.78.
GuruFocus considers Tera Software to be Modestly Undervalued.
Key valuation signals for NSE:TERASOFT:
Debt-to-EBITDA: 0.00
GF Value™: ₹450.78 vs. price of ₹321.75 (28.6% below fair value)
No single metric tells the full story. See the NSE:TERASOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tera Software Ltd is engaged in providing IT & Integrated services. The company provides IT and operational solutions such as fiber network infrastructure and services; installation, maintenance, and support services, as well as wireless and wired connectivity; digitization of land records; sales tax automation; and solutions for the automation and management of road transport and vehicle registration authorities, among others. The company's operating business segments include the Technical Division, which generates maximum revenue, Integrated Solutions, Projects Division, and Others.
81GF Score
Get the complete analysis for NSE:TERASOFT
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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