Penguin SolutionsPENG -10.67%69 Debt-to-EBITDA is 1.90 as of Feb. 2026, which is 63% below its 10-year median of 5.20. GuruFocus rates PENG with a GF Score™ of 69/100 and a GF Value™ of $24.00 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,702 Software companies, Penguin Solutions ranks worse than 80.73% 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 Penguin Solutions's Debt-to-EBITDA or its related term are showing as below:
PENG'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.16 Med: 5.2 Max: 20.1
Current: 3.73
During the past 11 years, the highest Debt-to-EBITDA Ratio of Penguin Solutions was 20.10. The lowest was 1.16. And the median was 5.20.
PENG's Debt-to-EBITDA is ranked worse than 80.73% of 1702
companies
in the Software industry
Industry Median: 1.075
vs PENG: 3.73
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.
Penguin Solutions Debt-to-EBITDA Related Terms
Penguin Solutions Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Penguin 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 Information Technology Services subindustry, Penguin 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.
Penguin Solutions Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Penguin 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 (Feb. 2026) EBITDA data.
Penguin Solutions (PENG) has a Debt-to-EBITDA of 1.90 as of Feb. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Penguin Solutions. This is 63% below median its historical median of 5.20. Over the past decade, Penguin Solutions' Debt-to-EBITDA has ranged from 1.16 to 20.10. According to the industry distribution chart, Penguin Solutions ranks #1374 out of 1702 companies in the Software industry, placing it in the top 80.7%.
Is Penguin Solutions' Debt-to-EBITDA too high?
Penguin Solutions' current Debt-to-EBITDA of 1.90 is 63% below median its 10-year median of 5.20. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 20.10. The Software industry median Debt-to-EBITDA is 1.08. Penguin Solutions' value of 1.90 is 76.7% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1374 out of 1702 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Penguin Solutions has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penguin Solutions' Debt-to-EBITDA compare to CHRN and PONY?
According to the Software industry distribution chart, Penguin Solutions ranks #1374 out of 1702 companies for Debt-to-EBITDA. This places Penguin Solutions in the lower half of its industry. The industry median Debt-to-EBITDA is 1.08. Penguin Solutions' value of 1.90 is 76.7% above this benchmark. Historically, Penguin Solutions' own Debt-to-EBITDA has ranged from 1.16 to 20.10 over the past decade. While the company's 10-year median is 5.20 vs. the industry median of 1.08, Penguin 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 1.08, based on 1,702 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. Penguin Solutions's current Debt-to-EBITDA of 1.90 is 76.7% 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 Penguin Solutions. For the Software industry, the median Debt-to-EBITDA is 1.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current Debt-to-EBITDA is 1.90, which is 63% below median its own 10-year median of 5.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Penguin Solutions stock overvalued right now?
Based on GuruFocus' analysis, Penguin Solutions (PENG) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.00, compared to a current price of $61.45 — trading 156% above its estimated fair value. The current Debt-to-EBITDA is 1.90, which is 63% below median its 10-year median of 5.20 and 76.7% above the Software industry median of 1.08. Penguin Solutions' overall GF Score™ is 69/100 with 5 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 Penguin Solutions (PENG), the current Debt-to-EBITDA is 1.90 as of Feb. 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 Penguin Solutions (PENG) Overvalued in 2026?
Based on GuruFocus' analysis, Penguin Solutions stock appears to be overvalued.
The current stock price of $61.45 is trading 156% above its estimated GF Value™ of $24.00.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
Debt-to-EBITDA: 1.90 (63% below median its 10-year median of 5.20)
GF Value™: $24.00 vs. price of $61.45 (156% above fair value)
Industry Position: 76.7% above the Software median (#1374 of 1702)
No single metric tells the full story. See the PENG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penguin Solutions Inc is an end-to-end technology company engaged in Intelligent Platform Solutions, Integrated Memory, and Optimized LED business. Its product include Servers, software, OCP HPC & AI system, Racks and Edge. Servers include AMD-based Serves, Intel-based Servers, etc. Software products include Scyld ClusterWare, Scyld Cloud Central, etc. OCP HPC & AI Systems includes OCP Servers & Storage and etc.
69GF Score
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