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 Razor Energy's Debt-to-EBITDA or its related term are showing as below:
RZREF's Debt-to-EBITDA is not ranked *
in the Oil & Gas industry.
Industry Median: 2.015 * Ranked among companies with meaningful Debt-to-EBITDA only.
Razor Energy (OTCPK:RZREF) 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.
Razor Energy Debt-to-EBITDA Related Terms
Razor Energy Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Razor Energy'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 Oil & Gas E&P subindustry, Razor Energy'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.
Razor Energy Debt-to-EBITDA vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Razor Energy's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Razor Energy'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. 2023) EBITDA data.
Razor Energy (RZREF) has a Debt-to-EBITDA of 5.34 as of Sep. 2023. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Razor Energy.
Is Razor Energy's Debt-to-EBITDA too high?
Razor Energy's current Debt-to-EBITDA is 5.34. The Oil & Gas industry median Debt-to-EBITDA is 2.02. Razor Energy's value of 5.34 is 165% above this industry median. Overall, Razor Energy has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Razor Energy's Debt-to-EBITDA compare to COP and EOG?
Razor Energy's Debt-to-EBITDA of 5.34 can be compared against companies in the Oil & Gas industry. The industry median Debt-to-EBITDA is 2.02. Razor Energy's value of 5.34 is 165% 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 an Oil & Gas company?
The median Debt-to-EBITDA among Oil & Gas companies is 2.02, based on 704 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. Razor Energy's current Debt-to-EBITDA of 5.34 is 165% 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 Razor Energy. For the Oil & Gas industry, the median Debt-to-EBITDA is 2.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Razor Energy's current Debt-to-EBITDA is 5.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Razor Energy stock overvalued right now?
Razor Energy (RZREF) has a current Debt-to-EBITDA of 5.34. The current Debt-to-EBITDA is 5.34 and 165% above the Oil & Gas industry median of 2.02. Razor Energy's overall GF Score™ is 12/100. 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 Razor Energy (RZREF), the current Debt-to-EBITDA is 5.34 as of Sep. 2023. 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.
Razor Energy Corp is a junior oil and gas development and production company. The company is focused on the acquisition and production of oil and gas properties in Alberta. It is involved in the production and development of light oil in Swan Hills Beaverhill Lake and Kaybob Triassic Montney formations.
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