Zim LaboratoriesNSE:ZIMLAB -1.99%78 Debt-to-EBITDA is 2.37 as of Mar. 2026, which is 5% above its 10-year median of 2.26. GuruFocus rates NSE:ZIMLAB with a GF Score™ of 78/100 and a GF Value™ of ₹102.76 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 687 Drug Manufacturers companies, Zim Laboratories ranks worse than 69% 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 Zim Laboratories's Debt-to-EBITDA or its related term are showing as below:
NSE:ZIMLAB'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.07 Med: 2.26 Max: 3.56
Current: 3.05
During the past 12 years, the highest Debt-to-EBITDA Ratio of Zim Laboratories was 3.56. The lowest was 1.07. And the median was 2.26.
NSE:ZIMLAB's Debt-to-EBITDA is ranked worse than 69% of 687
companies
in the Drug Manufacturers industry
Industry Median: 1.65
vs NSE:ZIMLAB: 3.05
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.
Zim Laboratories Debt-to-EBITDA Related Terms
Zim Laboratories Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Zim Laboratories'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:ZIMLAB vs ZTS, UTHR: Debt-to-EBITDA Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Zim Laboratories'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.
Zim Laboratories Debt-to-EBITDA vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zim Laboratories's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Zim Laboratories'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.
Zim Laboratories (NSE:ZIMLAB) has a Debt-to-EBITDA of 2.37 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 Zim Laboratories. This is near median its historical median of 2.26. Over the past decade, Zim Laboratories' Debt-to-EBITDA has ranged from 1.07 to 3.56. According to the industry distribution chart, Zim Laboratories ranks #474 out of 687 companies in the Drug Manufacturers industry, placing it in the top 69%.
Is Zim Laboratories' Debt-to-EBITDA too high?
Zim Laboratories' current Debt-to-EBITDA of 2.37 is near median its 10-year median of 2.26. Over the past 10 years, this metric has ranged from a low of 1.07 to a high of 3.56. The Drug Manufacturers industry median Debt-to-EBITDA is 1.65. Zim Laboratories' value of 2.37 is 43.6% above this industry median. Based on the distribution chart, Zim Laboratories ranks #474 out of 687 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Zim Laboratories has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zim Laboratories' Debt-to-EBITDA compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Zim Laboratories ranks #474 out of 687 companies for Debt-to-EBITDA. This places Zim Laboratories in the lower half of its industry. The industry median Debt-to-EBITDA is 1.65. Zim Laboratories' value of 2.37 is 43.6% above this benchmark. Historically, Zim Laboratories' own Debt-to-EBITDA has ranged from 1.07 to 3.56 over the past decade. While the company's 10-year median is 2.26 vs. the industry median of 1.65, Zim Laboratories has consistently been above 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 Drug Manufacturers company?
The median Debt-to-EBITDA among Drug Manufacturers companies is 1.65, based on 687 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. Zim Laboratories's current Debt-to-EBITDA of 2.37 is 43.6% 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 Zim Laboratories. For the Drug Manufacturers industry, the median Debt-to-EBITDA is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zim Laboratories's current Debt-to-EBITDA is 2.37, which is near median its own 10-year median of 2.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zim Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Zim Laboratories (NSE:ZIMLAB) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹102.76, compared to a current price of ₹113.62 — trading 10.6% above its estimated fair value. The current Debt-to-EBITDA is 2.37, which is near median its 10-year median of 2.26 and 43.6% above the Drug Manufacturers industry median of 1.65. Zim Laboratories' overall GF Score™ is 78/100 with 8 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 Zim Laboratories (NSE:ZIMLAB), the current Debt-to-EBITDA is 2.37 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 Zim Laboratories (NSE:ZIMLAB) Overvalued in 2026?
Based on GuruFocus' analysis, Zim Laboratories stock appears to be overvalued.
The current stock price of ₹113.62 is trading 10.6% above its estimated GF Value™ of ₹102.76.
GuruFocus considers Zim Laboratories to be Modestly Overvalued.
Key valuation signals for NSE:ZIMLAB:
Debt-to-EBITDA: 2.37 (near median its 10-year median of 2.26)
GF Value™: ₹102.76 vs. price of ₹113.62 (10.6% above fair value)
Industry Position: 43.6% above the Drug Manufacturers median (#474 of 687)
No single metric tells the full story. See the NSE:ZIMLAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zim Laboratories Ltd is engaged in the manufacturing of formulation drugs and pre formulation ingredients in India and marketing and selling these within and outside India. It is engaged in manufacturing &wholesale of pharmaceutical products, market research and research & development activities. The Group is mainly engaged in the business of pharmaceuticals. It has presence in India and Outside India. The company generates majority of revenue from India. Its products are Oral Thin Films, Pre-formulations Intermediates, Finished Formulations.
78GF Score
Get the complete analysis for NSE:ZIMLAB
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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