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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 Ribbon Communications's Debt-to-EBITDA or its related term are showing as below:
RBBN'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -23.75 Med: -1.75 Max: 14.41
Current: 14.41
During the past 13 years, the highest Debt-to-EBITDA Ratio of Ribbon Communications was 14.41. The lowest was -23.75. And the median was -1.75.
RBBN's Debt-to-EBITDA is ranked worse than 95.95% of 1728
companies
in the Software industry
Industry Median: 1.03
vs RBBN: 14.41
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.
Ribbon Communications Debt-to-EBITDA Related Terms
Ribbon Communications Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Ribbon Communications'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.
RBBN vs CURR, XPER, API: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Ribbon Communications'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.
Ribbon Communications Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Ribbon Communications's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Ribbon Communications'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 (Jun. 2026) EBITDA data.
Ribbon Communications (RBBN) has a Debt-to-EBITDA of 2,308.20 as of Jun. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Ribbon Communications. According to the industry distribution chart, Ribbon Communications ranks #1658 out of 1728 companies in the Software industry, placing it in the top 95.9%.
Is Ribbon Communications' Debt-to-EBITDA too high?
Ribbon Communications' current Debt-to-EBITDA is 2,308.20. The Software industry median Debt-to-EBITDA is 1.03. Ribbon Communications' value of 2,308.20 is 223997.1% above this industry median. Based on the distribution chart, Ribbon Communications ranks #1658 out of 1728 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Ribbon Communications has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ribbon Communications' Debt-to-EBITDA compare to CURR and XPER?
According to the Software industry distribution chart, Ribbon Communications ranks #1658 out of 1728 companies for Debt-to-EBITDA. This places Ribbon Communications in the lower half of its industry. The industry median Debt-to-EBITDA is 1.03. Ribbon Communications' value of 2,308.20 is 223997.1% 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 Software company?
The median Debt-to-EBITDA among Software companies is 1.03, based on 1,728 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. Ribbon Communications's current Debt-to-EBITDA of 2,308.20 is 223997.1% 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 Ribbon Communications. For the Software industry, the median Debt-to-EBITDA is 1.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ribbon Communications's current Debt-to-EBITDA is 2,308.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ribbon Communications stock overvalued right now?
Based on GuruFocus' analysis, Ribbon Communications (RBBN) is currently considered Modestly Undervalued. The stock's GF Value™ is $2.88, compared to a current price of $2.04 — trading 29.2% below its estimated fair value. The current Debt-to-EBITDA is 2,308.20 and 223997.1% above the Software industry median of 1.03. Ribbon Communications' overall GF Score™ is 50/100 with 3 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 Ribbon Communications (RBBN), the current Debt-to-EBITDA is 2,308.20 as of Jun. 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 Ribbon Communications (RBBN) Overvalued in 2026?
Based on GuruFocus' analysis, Ribbon Communications stock appears to be undervalued.
The current stock price of $2.04 is trading 29.2% below its estimated GF Value™ of $2.88.
GuruFocus considers Ribbon Communications to be Modestly Undervalued.
Key valuation signals for RBBN:
Debt-to-EBITDA: 2,308.20
GF Value™: $2.88 vs. price of $2.04 (29.2% below fair value)
Industry Position: 223997.1% above the Software median (#1658 of 1728)
No single metric tells the full story. See the RBBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ribbon Communications Inc provides communications technology to service providers and enterprises, offering software and high-performance hardware products, network solutions, and services for secure data and voice communications, as well as high-bandwidth networking for residential and enterprise customers across industries such as finance, education, government, utilities, and transportation. It operates through two segments: Cloud and Edge, which generate maximum revenue and deliver software-centric, cloud-native solutions for VoIP, VoLTE, VoNR, and unified communications, and IP Optical Networks, which support growing telecommunications traffic from 5G, distributed cloud computing, and other applications. The Company generates the majority of its revenue from the United States.
50GF Score
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