PagSeguro DigitalPAGS +2.78%88 Debt-to-EBITDA is 4.54 as of Mar. 2026, which is 128% above its 10-year median of 1.99. GuruFocus rates PAGS with a GF Score™ of 88/100 and a GF Value™ of $12.01 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,714 Software companies, PagSeguro Digital ranks worse than 86.17% 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 PagSeguro Digital's Debt-to-EBITDA or its related term are showing as below:
PAGS'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.34 Med: 1.99 Max: 5.26
Current: 5.19
During the past 12 years, the highest Debt-to-EBITDA Ratio of PagSeguro Digital was 5.26. The lowest was 0.34. And the median was 1.99.
PAGS's Debt-to-EBITDA is ranked worse than 86.17% of 1714
companies
in the Software industry
Industry Median: 1.09
vs PAGS: 5.19
PagSeguro Digital (NYSE:PAGS) Debt-to-EBITDA Explanation
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.
PagSeguro Digital Debt-to-EBITDA Related Terms
PagSeguro Digital Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for PagSeguro Digital'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.
PAGS vs ATEN, PAYO, STNE: Debt-to-EBITDA Comparison
For the Software - Infrastructure subindustry, PagSeguro Digital'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.
PagSeguro Digital Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, PagSeguro Digital's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where PagSeguro Digital'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.
PagSeguro Digital (PAGS) has a Debt-to-EBITDA of 4.54 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 PagSeguro Digital. This is 128% above median its historical median of 1.99. Over the past decade, PagSeguro Digital's Debt-to-EBITDA has ranged from 0.34 to 5.26. According to the industry distribution chart, PagSeguro Digital ranks #1477 out of 1714 companies in the Software industry, placing it in the top 86.2%.
Is PagSeguro Digital's Debt-to-EBITDA too high?
PagSeguro Digital's current Debt-to-EBITDA of 4.54 is 128% above median its 10-year median of 1.99. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 5.26. The Software industry median Debt-to-EBITDA is 1.09. PagSeguro Digital's value of 4.54 is 316.5% above this industry median. Based on the distribution chart, PagSeguro Digital ranks #1477 out of 1714 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, PagSeguro Digital has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PagSeguro Digital's Debt-to-EBITDA compare to ATEN and PAYO?
According to the Software industry distribution chart, PagSeguro Digital ranks #1477 out of 1714 companies for Debt-to-EBITDA. This places PagSeguro Digital in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. PagSeguro Digital's value of 4.54 is 316.5% above this benchmark. Historically, PagSeguro Digital's own Debt-to-EBITDA has ranged from 0.34 to 5.26 over the past decade. While the company's 10-year median is 1.99 vs. the industry median of 1.09, PagSeguro Digital 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 Software company?
The median Debt-to-EBITDA among Software companies is 1.09, based on 1,714 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. PagSeguro Digital's current Debt-to-EBITDA of 4.54 is 316.5% 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 PagSeguro Digital. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PagSeguro Digital's current Debt-to-EBITDA is 4.54, which is 128% above median its own 10-year median of 1.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PagSeguro Digital stock overvalued right now?
Based on GuruFocus' analysis, PagSeguro Digital (PAGS) is currently considered Modestly Undervalued. The stock's GF Value™ is $12.01, compared to a current price of $9.25 — trading 23% below its estimated fair value. The current Debt-to-EBITDA is 4.54, which is 128% above median its 10-year median of 1.99 and 316.5% above the Software industry median of 1.09. PagSeguro Digital's overall GF Score™ is 88/100 with 4 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 PagSeguro Digital (PAGS), the current Debt-to-EBITDA is 4.54 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 PagSeguro Digital (PAGS) Overvalued in 2026?
Based on GuruFocus' analysis, PagSeguro Digital stock appears to be undervalued.
The current stock price of $9.25 is trading 23% below its estimated GF Value™ of $12.01.
GuruFocus considers PagSeguro Digital to be Modestly Undervalued.
Key valuation signals for PAGS:
Debt-to-EBITDA: 4.54 (128% above median its 10-year median of 1.99)
GF Value™: $12.01 vs. price of $9.25 (23% below fair value)
Industry Position: 316.5% above the Software median (#1477 of 1714)
No single metric tells the full story. See the PAGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PagSeguro Digital Ltd is a Brazilian-based company that acts as a provider of financial technology solutions focused on Micro-Merchants, Small Companies and Medium-Sized Companies (SMEs), in Brazil. The company provides a range of solutions and tools such as cash-in and cash-out options and provides access to working capital to help to manage its cash flow. It delivers an end-to-end digital ecosystem to address day-to-day financial needs, including receiving and spending funds and managing and growing businesses for clients. The company also offers the Free PagSeguro Digital Account delivering Cash-In Solutions, Online and In-Person Payment Tools, Online Payment Tools; and Web Check Outs offer tokenization, handling of shipping information, and others.
88GF Score
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