PDF SolutionsPDFS +7.24%77 Debt-to-EBITDA is 1.71 as of Mar. 2026, which is 338% above its 10-year median of 0.39. GuruFocus rates PDFS with a GF Score™ of 77/100 and a GF Value™ of $41.69 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,704 Software companies, PDF Solutions ranks worse than 68.96% 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 PDF Solutions's Debt-to-EBITDA or its related term are showing as below:
PDFS'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -28.75 Med: 0.39 Max: 3.94
Current: 2.4
During the past 13 years, the highest Debt-to-EBITDA Ratio of PDF Solutions was 3.94. The lowest was -28.75. And the median was 0.39.
PDFS's Debt-to-EBITDA is ranked worse than 68.96% of 1704
companies
in the Software industry
Industry Median: 1.1
vs PDFS: 2.40
PDF Solutions (NAS:PDFS) 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.
PDF Solutions Debt-to-EBITDA Related Terms
PDF Solutions Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for PDF Solutions'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 Software - Application subindustry, PDF Solutions'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.
PDF Solutions Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, PDF Solutions's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where PDF Solutions'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.
PDF Solutions (PDFS) has a Debt-to-EBITDA of 1.71 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 PDF Solutions. This is 338% above median its historical median of 0.39. According to the industry distribution chart, PDF Solutions ranks #1175 out of 1704 companies in the Software industry, placing it in the top 69%.
Is PDF Solutions' Debt-to-EBITDA too high?
PDF Solutions' current Debt-to-EBITDA of 1.71 is 338% above median its 10-year median of 0.39. The Software industry median Debt-to-EBITDA is 1.10. PDF Solutions' value of 1.71 is 55.5% above this industry median. Based on the distribution chart, PDF Solutions ranks #1175 out of 1704 companies in the Software industry, which is below the industry midpoint. Overall, PDF Solutions has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PDF Solutions' Debt-to-EBITDA compare to FSLY and KC?
According to the Software industry distribution chart, PDF Solutions ranks #1175 out of 1704 companies for Debt-to-EBITDA. This places PDF Solutions in the lower half of its industry. The industry median Debt-to-EBITDA is 1.10. PDF Solutions' value of 1.71 is 55.5% above this benchmark. While the company's 10-year median is 0.39 vs. the industry median of 1.10, PDF Solutions 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 1.10, based on 1,704 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. PDF Solutions's current Debt-to-EBITDA of 1.71 is 55.5% 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 PDF Solutions. For the Software industry, the median Debt-to-EBITDA is 1.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PDF Solutions's current Debt-to-EBITDA is 1.71, which is 338% above median its own 10-year median of 0.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PDF Solutions stock overvalued right now?
Based on GuruFocus' analysis, PDF Solutions (PDFS) is currently considered Significantly Overvalued. The stock's GF Value™ is $41.69, compared to a current price of $70.79 — trading 69.8% above its estimated fair value. The current Debt-to-EBITDA is 1.71, which is 338% above median its 10-year median of 0.39 and 55.5% above the Software industry median of 1.10. PDF Solutions' overall GF Score™ is 77/100 with 6 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 PDF Solutions (PDFS), the current Debt-to-EBITDA is 1.71 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 PDF Solutions (PDFS) Overvalued in 2026?
Based on GuruFocus' analysis, PDF Solutions stock appears to be overvalued.
The current stock price of $70.79 is trading 69.8% above its estimated GF Value™ of $41.69.
GuruFocus considers PDF Solutions to be Significantly Overvalued.
Key valuation signals for PDFS:
Debt-to-EBITDA: 1.71 (338% above median its 10-year median of 0.39)
GF Value™: $41.69 vs. price of $70.79 (69.8% above fair value)
Industry Position: 55.5% above the Software median (#1175 of 1704)
No single metric tells the full story. See the PDFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PDF Solutions Inc provides products and services designed to empower organizations across the semiconductor and electronics ecosystem to connect, collect, manage, and analyze data about design, equipment, manufacturing, and test to improve the yield and quality of their products and operational efficiency. The Company's products, services, and solutions include proprietary software, physical intellectual property (IP) for integrated circuit (IC) designs, electrical measurement hardware tools, methodologies, and professional services.
77GF Score
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