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Varun BeveragesNSE:VBL +2.34%97 Debt-to-EBITDA is 0.36 as of Jun. 2026, which is 82% below its 10-year median of 1.97. GuruFocus rates NSE:VBL with a GF Score™ of 97/100 and a GF Value™ of ₹596.59 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 97 Beverages - Non-Alcoholic companies, Varun Beverages ranks better than 70.1% 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 Varun Beverages's Debt-to-EBITDA or its related term are showing as below:
NSE:VBL'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.47 Med: 1.97 Max: 2.81
Current: 0.58
During the past 11 years, the highest Debt-to-EBITDA Ratio of Varun Beverages was 2.81. The lowest was 0.47. And the median was 1.97.
NSE:VBL's Debt-to-EBITDA is ranked better than 70.1% of 97
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 1.15
vs NSE:VBL: 0.58
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.
Varun Beverages Debt-to-EBITDA Related Terms
Varun Beverages Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Varun Beverages'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:VBL vs KO, PEP, MNST: Debt-to-EBITDA Comparison
For the Beverages - Non-Alcoholic subindustry, Varun Beverages'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.
Varun Beverages Debt-to-EBITDA vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Varun Beverages's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Varun Beverages'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.
Varun Beverages (NSE:VBL) has a Debt-to-EBITDA of 0.36 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 Varun Beverages. This is 82% below median its historical median of 1.97. Over the past decade, Varun Beverages' Debt-to-EBITDA has ranged from 0.47 to 2.81. According to the industry distribution chart, Varun Beverages ranks #29 out of 97 companies in the Beverages - Non-Alcoholic industry, placing it in the top 29.9%.
Is Varun Beverages' Debt-to-EBITDA too high?
Varun Beverages' current Debt-to-EBITDA of 0.36 is 82% below median its 10-year median of 1.97. Over the past 10 years, this metric has ranged from a low of 0.47 to a high of 2.81. The Beverages - Non-Alcoholic industry median Debt-to-EBITDA is 1.15. Varun Beverages' value of 0.36 is 68.7% below this industry median. Based on the distribution chart, Varun Beverages ranks #29 out of 97 companies in the Beverages - Non-Alcoholic industry, which is above the industry midpoint. Overall, Varun Beverages has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Varun Beverages' Debt-to-EBITDA compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, Varun Beverages ranks #29 out of 97 companies for Debt-to-EBITDA. This puts Varun Beverages in the upper half of its industry. The industry median Debt-to-EBITDA is 1.15. Varun Beverages' value of 0.36 is 68.7% below this benchmark. Historically, Varun Beverages' own Debt-to-EBITDA has ranged from 0.47 to 2.81 over the past decade. While the company's 10-year median is 1.97 vs. the industry median of 1.15, Varun Beverages 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 Beverages - Non-Alcoholic company?
The median Debt-to-EBITDA among Beverages - Non-Alcoholic companies is 1.15, based on 97 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. Varun Beverages's current Debt-to-EBITDA of 0.36 is 68.7% 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 Varun Beverages. For the Beverages - Non-Alcoholic industry, the median Debt-to-EBITDA is 1.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varun Beverages's current Debt-to-EBITDA is 0.36, which is 82% below median its own 10-year median of 1.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varun Beverages stock overvalued right now?
Based on GuruFocus' analysis, Varun Beverages (NSE:VBL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹596.59, compared to a current price of ₹438.00 — trading 26.6% below its estimated fair value. The current Debt-to-EBITDA is 0.36, which is 82% below median its 10-year median of 1.97 and 68.7% below the Beverages - Non-Alcoholic industry median of 1.15. Varun Beverages' overall GF Score™ is 97/100 with 1 warning sign 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 Varun Beverages (NSE:VBL), the current Debt-to-EBITDA is 0.36 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 Varun Beverages (NSE:VBL) Overvalued in 2026?
Based on GuruFocus' analysis, Varun Beverages stock appears to be undervalued.
The current stock price of ₹438.00 is trading 26.6% below its estimated GF Value™ of ₹596.59.
GuruFocus considers Varun Beverages to be Modestly Undervalued.
Key valuation signals for NSE:VBL:
Debt-to-EBITDA: 0.36 (82% below median its 10-year median of 1.97)
GF Value™: ₹596.59 vs. price of ₹438.00 (26.6% below fair value)
Industry Position: 68.7% below the Beverages - Non-Alcoholic median (#29 of 97)
No single metric tells the full story. See the NSE:VBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varun Beverages Ltd is engaged in manufacturing, selling, bottling, and distribution of beverages of the Pepsi brand in geographically pre-defined territories of India, Sri Lanka, Nepal, Zambia, Morocco, and Zimbabwe. Its brands include Seven-Up, Mountain Dew, Mirinda, Nimbooz, Tropicana Slice, and other related products. The firm generates a majority of its revenue within India.
97GF Score
Get the complete analysis for NSE:VBL
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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