PSAV (PSAV) Debt-to-EBITDA : 4.49 (As of Mar. 2016)


What is PSAV Debt-to-EBITDA?

PSAV PSAV Debt-to-EBITDA is 4.49 as of Mar. 2016.

Debt-to-EBITDA measures a company's ability to pay off its debt.

PSAV's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2016 was $7.22 Mil. PSAV's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2016 was $855.57 Mil. PSAV's annualized EBITDA for the quarter that ended in Mar. 2016 was $192.22 Mil. PSAV's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2016 was 4.49.

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 PSAV's Debt-to-EBITDA or its related term are showing as below:

PSAV's Debt-to-EBITDA is not ranked *
in the Media - Diversified industry.
Industry Median: 1.66
* Ranked among companies with meaningful Debt-to-EBITDA only.

PSAV  (NYSE:PSAV) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

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.


PSAV Debt-to-EBITDA Related Terms


PSAV Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for PSAV'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.

PSAV Debt-to-EBITDA Chart

PSAV Annual Data
Trend Dec12 Dec13 Dec14 Dec15
Debt-to-EBITDA
0.00 4.62 N/A 6.29

PSAV Quarterly Data
Dec12 Dec13 Mar15 Jun15 Sep15 Dec15 Mar16
Debt-to-EBITDA Get a 7-Day Free Trial 0.00 4.25 24.83 6.72 4.49

PSAV vs CRCO, ASKH, PTSX: Debt-to-EBITDA Comparison

For the Broadcasting subindustry, PSAV'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.


PSAV Debt-to-EBITDA vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, PSAV's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where PSAV's Debt-to-EBITDA falls into.



PSAV Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

PSAV's Debt-to-EBITDA for the fiscal year that ended in Dec. 2015 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(7.218 + 856.271) / 137.356
=6.29

PSAV's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2016 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(7.218 + 855.571) / 192.22
=4.49

* 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. 2016) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 4.49 mean?
PSAV (PSAV) has a Debt-to-EBITDA of 4.49 as of Mar. 2016. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on PSAV.
Is PSAV's Debt-to-EBITDA too high?
PSAV's current Debt-to-EBITDA is 4.49. The Media - Diversified industry median Debt-to-EBITDA is 1.66. PSAV's value of 4.49 is 170.5% above this industry median.
How does PSAV's Debt-to-EBITDA compare to CRCO and ASKH?
PSAV's Debt-to-EBITDA of 4.49 can be compared against companies in the Media - Diversified industry. The industry median Debt-to-EBITDA is 1.66. PSAV's value of 4.49 is 170.5% above this benchmark. 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 Media - Diversified company?
The median Debt-to-EBITDA among Media - Diversified companies is 1.66, based on 676 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. PSAV's current Debt-to-EBITDA of 4.49 is 170.5% 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 PSAV. For the Media - Diversified industry, the median Debt-to-EBITDA is 1.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PSAV's current Debt-to-EBITDA is 4.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PSAV stock overvalued right now?
PSAV (PSAV) has a current Debt-to-EBITDA of 4.49. The current Debt-to-EBITDA is 4.49 and 170.5% above the Media - Diversified industry median of 1.66. 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 PSAV (PSAV), the current Debt-to-EBITDA is 4.49 as of Mar. 2016. 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.

PSAV Business Description

PSAV Inc was incorporated in Delaware on August 11, 2015. The Company along with its subsidiaries provides event technology services. The Company provides services including audiovisual services, equipment rental, staging and meeting services, communication systems, and related technical support to its customers in various venues, including hotels and convention centers. The Company's Video technology includes front and rear projection from large format HD high lumen projection to boardroom-style projectors, playback systems, image magnification, digital capture, cameras and display systems, including LED displays and video walls; Rigging Solutions include design and installation of permanently installed rig points in meeting venues, day-to-day deployment of rigging systems to safely transform meeting and event spaces for larger and more sophisticated set and lighting designs and certified trainers and inspectors; Wi-Fi Solutions include managing venues' entire network to provide customers secure and reliable wired and wireless solutions; Staging includes collections of custom screens and the ability to provide concert sound, broadcast quality projection, seasoned stage producers, and CAD drawing; Creative Services including Thematic creation, PowerPoint display, video creation, & stage sets; Mobile Device Applications tailored to the specific events that provide the schedule of events, maps, sponsors and detailed information on the host customer; Video Mapping / Simultaneous Translation; Virtual Meetings and Events; Event Consultation and Support, Power Distribution Solutions including streamlining of special event power distribution for event and production power across events, meeting rooms and trade shows; Audio including microphone and sound solutions with digital mixers, wireless microphones, networked audio and proprietary software to control live sound systems; and Lighting including speaker and stage lighting, intelligent lighting and decorative and theatrical lighting through gel lights and LED lights. The Company operates in two segments including Domestic and International. The Domestic segment provides services to customers throughout the United States and Puerto Rico; and is provider of event technology services at approximately over 1,000 hotel properties and other event venues. The International segment provides services to its customers in Canada, Mexico, the Caribbean, Europe and the Middle East, in addition to providing non-venue based services in Asia; and provides event technology services at approximately over 300 international hotel properties and other event venues. The Company's customers include corporations, event organizers, trade associations and meeting planners. The Company faces competition from Freeman Company.