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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 Premier's Debt-to-EBITDA or its related term are showing as below:
PINC'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.06 Med: 0.48 Max: 2.55
Current: 2.55
During the past 13 years, the highest Debt-to-EBITDA Ratio of Premier was 2.55. The lowest was 0.06. And the median was 0.48.
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.
Premier Debt-to-EBITDA Related Terms
Premier Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Premier'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.
PINC vs TXG, HTFL, PRVA: Debt-to-EBITDA Comparison
For the Health Information Services subindustry, Premier'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.
Premier Debt-to-EBITDA vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Premier's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Premier'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 (Sep. 2025) EBITDA data.
Premier (PINC) has a Debt-to-EBITDA of 1.52 as of Sep. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Premier. This is 217% above median its historical median of 0.48. Over the past decade, Premier's Debt-to-EBITDA has ranged from 0.06 to 2.55.
Is Premier's Debt-to-EBITDA too high?
Premier's current Debt-to-EBITDA of 1.52 is 217% above median its 10-year median of 0.48. Over the past 10 years, this metric has ranged from a low of 0.06 to a high of 2.55. The Healthcare Providers & Services industry median Debt-to-EBITDA is 2.20. Premier's value of 1.52 is 30.8% below this industry median. Overall, Premier has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Premier's Debt-to-EBITDA compare to TXG and HTFL?
Premier's Debt-to-EBITDA of 1.52 can be compared against companies in the Healthcare Providers & Services industry. The industry median Debt-to-EBITDA is 2.20. Premier's value of 1.52 is 30.8% below this benchmark. Historically, Premier's own Debt-to-EBITDA has ranged from 0.06 to 2.55 over the past decade. While the company's 10-year median is 0.48 vs. the industry median of 2.20, Premier 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 Healthcare Providers & Services company?
The median Debt-to-EBITDA among Healthcare Providers & Services companies is 2.20, based on 478 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. Premier's current Debt-to-EBITDA of 1.52 is 30.8% 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 Premier. For the Healthcare Providers & Services industry, the median Debt-to-EBITDA is 2.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Premier's current Debt-to-EBITDA is 1.52, which is 217% above median its own 10-year median of 0.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Premier stock overvalued right now?
Premier (PINC) has a current Debt-to-EBITDA of 1.52. The stock's GF Value™ is $27.61, compared to a current price of $49.95 — trading 80.9% above its estimated fair value. The current Debt-to-EBITDA is 1.52, which is 217% above median its 10-year median of 0.48 and 30.8% below the Healthcare Providers & Services industry median of 2.20. Premier's overall GF Score™ is 54/100 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 Premier (PINC), the current Debt-to-EBITDA is 1.52 as of Sep. 2025. 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 Premier (PINC) Overvalued in 2026?
Based on GuruFocus' analysis, Premier stock appears to be overvalued.
The current stock price of $49.95 is trading 80.9% above its estimated GF Value™ of $27.61.
Key valuation signals for PINC:
Debt-to-EBITDA: 1.52 (217% above median its 10-year median of 0.48)
GF Value™: $27.61 vs. price of $49.95 (80.9% above fair value)
Industry Position: 30.8% below the Healthcare Providers & Services median
No single metric tells the full story. See the PINC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Premier Inc is a Charlotte, North Carolina-based technology-driven healthcare improvement company, uniting an alliance of United States (U.S.) hospitals, health systems, and other providers and organizations to transform healthcare. The company's revenue is all sourced domestically and is reported in two business segments: the supply chain services and the consulting and technology platform of performance services. It generates the majority of its revenue from the supply chain services segment.
54GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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