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Rent the RunwayRENT -4.53%52 Debt-to-EBITDA is 1.93 as of Apr. 2026, which is 16% below its 10-year median of 2.30. GuruFocus rates RENT with a GF Score™ of 52/100 and a GF Value™ of $3.42 (Fairly Valued). The stock has 5 warning signs investors should review. Among 899 Retail - Cyclical companies, Rent the Runway ranks better than 58.18% 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 Rent the Runway's Debt-to-EBITDA or its related term are showing as below:
RENT'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -22.39 Med: 2.3 Max: 67.06
Current: 1.95
During the past 7 years, the highest Debt-to-EBITDA Ratio of Rent the Runway was 67.06. The lowest was -22.39. And the median was 2.30.
RENT's Debt-to-EBITDA is ranked better than 58.18% of 899
companies
in the Retail - Cyclical industry
Industry Median: 2.4
vs RENT: 1.95
Rent the Runway (NAS:RENT) 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.
Rent the Runway Debt-to-EBITDA Related Terms
Rent the Runway Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Rent the Runway'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.
RENT vs AKA, TLYS, CATO: Debt-to-EBITDA Comparison
For the Apparel Retail subindustry, Rent the Runway'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.
Rent the Runway Debt-to-EBITDA vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Rent the Runway's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Rent the Runway'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 (Apr. 2026) EBITDA data.
Rent the Runway (RENT) has a Debt-to-EBITDA of 1.93 as of Apr. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Rent the Runway. This is 16% below median its historical median of 2.30. According to the industry distribution chart, Rent the Runway ranks #376 out of 899 companies in the Retail - Cyclical industry, placing it in the top 41.8%.
Is Rent the Runway's Debt-to-EBITDA too high?
Rent the Runway's current Debt-to-EBITDA of 1.93 is 16% below median its 10-year median of 2.30. The Retail - Cyclical industry median Debt-to-EBITDA is 2.40. Rent the Runway's value of 1.93 is 19.6% below this industry median. Based on the distribution chart, Rent the Runway ranks #376 out of 899 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Rent the Runway has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rent the Runway's Debt-to-EBITDA compare to AKA and TLYS?
According to the Retail - Cyclical industry distribution chart, Rent the Runway ranks #376 out of 899 companies for Debt-to-EBITDA. This puts Rent the Runway in the upper half of its industry. The industry median Debt-to-EBITDA is 2.40. Rent the Runway's value of 1.93 is 19.6% below this benchmark. While the company's 10-year median is 2.30 vs. the industry median of 2.40, Rent the Runway 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 Retail - Cyclical company?
The median Debt-to-EBITDA among Retail - Cyclical companies is 2.40, based on 899 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. Rent the Runway's current Debt-to-EBITDA of 1.93 is 19.6% 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 Rent the Runway. For the Retail - Cyclical industry, the median Debt-to-EBITDA is 2.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rent the Runway's current Debt-to-EBITDA is 1.93, which is 16% below median its own 10-year median of 2.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rent the Runway stock overvalued right now?
Based on GuruFocus' analysis, Rent the Runway (RENT) is currently considered Fairly Valued. The stock's GF Value™ is $3.42, compared to a current price of $3.16 — trading 7.6% below its estimated fair value. The current Debt-to-EBITDA is 1.93, which is 16% below median its 10-year median of 2.30 and 19.6% below the Retail - Cyclical industry median of 2.40. Rent the Runway's overall GF Score™ is 52/100 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 Rent the Runway (RENT), the current Debt-to-EBITDA is 1.93 as of Apr. 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 Rent the Runway (RENT) Overvalued in 2026?
Based on GuruFocus' analysis, Rent the Runway stock appears to be undervalued.
The current stock price of $3.16 is trading 7.6% below its estimated GF Value™ of $3.42.
GuruFocus considers Rent the Runway to be Fairly Valued.
Key valuation signals for RENT:
Debt-to-EBITDA: 1.93 (16% below median its 10-year median of 2.30)
GF Value™: $3.42 vs. price of $3.16 (7.6% below fair value)
Industry Position: 19.6% below the Retail - Cyclical median (#376 of 899)
No single metric tells the full story. See the RENT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rent the Runway Inc is an e-commerce platform that allows users to rent, subscribe to, or buy designer apparel and accessories. The company gives customers access to its unlimited closet through its subscription offering (Subscription) or the ability to rent a-la-carte through its reserve offering (Reserve). The company also gives its subscribers and customers the ability to buy its products through its Resale offering. The Closet in the Cloud offers a wide assortment of items for every occasion, from evening wear and accessories to ready-to-wear, workwear, denim, casual, maternity, outerwear, blouses, knitwear, loungewear, jewelry, handbags, activewear, and ski wear.
52GF 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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