Serco GroupSCGPY 81 Debt-to-EBITDA is 1.98 as of Dec. 2025, which is 15% below its 10-year median of 2.32. GuruFocus rates SCGPY with a GF Score™ of 81/100 and a GF Value™ of $2.51 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 838 Business Services companies, Serco Group ranks worse than 55.37% 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 Serco Group's Debt-to-EBITDA or its related term are showing as below:
SCGPY'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.47 Med: 2.32 Max: 3.95
Current: 1.93
During the past 13 years, the highest Debt-to-EBITDA Ratio of Serco Group was 3.95. The lowest was 1.47. And the median was 2.32.
SCGPY's Debt-to-EBITDA is ranked worse than 55.37% of 838
companies
in the Business Services industry
Industry Median: 1.62
vs SCGPY: 1.93
Serco Group (OTCPK:SCGPY) 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.
Serco Group Debt-to-EBITDA Related Terms
Serco Group Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Serco Group'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.
SCGPY vs CTAS, CPRT, ULS: Debt-to-EBITDA Comparison
For the Specialty Business Services subindustry, Serco Group'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.
Serco Group Debt-to-EBITDA vs Business Services Industry
For the Business Services industry and Industrials sector, Serco Group's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Serco Group'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 two times the quarterly (Dec. 2025) EBITDA data.
Serco Group (SCGPY) has a Debt-to-EBITDA of 1.98 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Serco Group. This is 15% below median its historical median of 2.32. Over the past decade, Serco Group's Debt-to-EBITDA has ranged from 1.47 to 3.95. According to the industry distribution chart, Serco Group ranks #464 out of 838 companies in the Business Services industry, placing it in the top 55.4%.
Is Serco Group's Debt-to-EBITDA too high?
Serco Group's current Debt-to-EBITDA of 1.98 is 15% below median its 10-year median of 2.32. Over the past 10 years, this metric has ranged from a low of 1.47 to a high of 3.95. The Business Services industry median Debt-to-EBITDA is 1.62. Serco Group's value of 1.98 is 22.2% above this industry median. Based on the distribution chart, Serco Group ranks #464 out of 838 companies in the Business Services industry, which is below the industry midpoint. Overall, Serco Group has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Serco Group's Debt-to-EBITDA compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Serco Group ranks #464 out of 838 companies for Debt-to-EBITDA. This places Serco Group in the lower half of its industry. The industry median Debt-to-EBITDA is 1.62. Serco Group's value of 1.98 is 22.2% above this benchmark. Historically, Serco Group's own Debt-to-EBITDA has ranged from 1.47 to 3.95 over the past decade. While the company's 10-year median is 2.32 vs. the industry median of 1.62, Serco Group has consistently been above 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 Business Services company?
The median Debt-to-EBITDA among Business Services companies is 1.62, based on 838 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. Serco Group's current Debt-to-EBITDA of 1.98 is 22.2% 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 Serco Group. For the Business Services industry, the median Debt-to-EBITDA is 1.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Serco Group's current Debt-to-EBITDA is 1.98, which is 15% below median its own 10-year median of 2.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Serco Group stock overvalued right now?
Based on GuruFocus' analysis, Serco Group (SCGPY) is currently considered Modestly Overvalued. The stock's GF Value™ is $2.51, compared to a current price of $2.83 — trading 12.6% above its estimated fair value. The current Debt-to-EBITDA is 1.98, which is 15% below median its 10-year median of 2.32 and 22.2% above the Business Services industry median of 1.62. Serco Group's overall GF Score™ is 81/100 with 4 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 Serco Group (SCGPY), the current Debt-to-EBITDA is 1.98 as of Dec. 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 Serco Group (SCGPY) Overvalued in 2026?
Based on GuruFocus' analysis, Serco Group stock appears to be overvalued.
The current stock price of $2.83 is trading 12.6% above its estimated GF Value™ of $2.51.
GuruFocus considers Serco Group to be Modestly Overvalued.
Key valuation signals for SCGPY:
Debt-to-EBITDA: 1.98 (15% below median its 10-year median of 2.32)
GF Value™: $2.51 vs. price of $2.83 (12.6% above fair value)
Industry Position: 22.2% above the Business Services median (#464 of 838)
No single metric tells the full story. See the SCGPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Serco Group PLC helps governments and public-sector bodies deliver public services. The company generates revenue from four divisions; the UK & Europe division provides hospital management, welfare, business support operations, and defense services in the U.K. and Europe. The North America division provides professional, defense, technology, and management services to the U.S. and Canadian governments. The Asia-Pacific segment provides frontline services, defense, and citizen services in Australia, New Zealand, and Hong Kong. The Middle East division provides transport, defense, and health services in the Middle East. The company generates its key revenue from the U.K. & Europe divisions.
81GF Score
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