Ability Enterprise Co (TPE:2374) Debt-to-EBITDA : 0.57 (As of Mar. 2026) — 46% Above Median

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TPE:2374 Ability Enterprise Co Ltd TPE:2374
84 GF Score
Price NT$70.50
GF Value NT$85.93
Valuation Modestly Undervalued
! 3 Warning Signs
View Full Analysis

What is Ability Enterprise Co Debt-to-EBITDA?

Ability Enterprise Co TPE:2374 -0.56% 84 Debt-to-EBITDA is 0.57 as of Mar. 2026, which is 46% above its 10-year median of 0.39. GuruFocus rates TPE:2374 with a GF Score™ of 84/100 and a GF Value™ of NT$85.93 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,793 Hardware companies, Ability Enterprise Co ranks better than 73.01% on this metric.

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

Ability Enterprise Co's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was NT$525 Mil. Ability Enterprise Co's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was NT$276 Mil. Ability Enterprise Co's annualized EBITDA for the quarter that ended in Mar. 2026 was NT$1,406 Mil. Ability Enterprise Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 0.57.

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 Ability Enterprise Co's Debt-to-EBITDA or its related term are showing as below:

TPE:2374' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -14.9   Med: 0.39   Max: 0.88
Current: 0.58

During the past 13 years, the highest Debt-to-EBITDA Ratio of Ability Enterprise Co was 0.88. The lowest was -14.90. And the median was 0.39.

TPE:2374's Debt-to-EBITDA is ranked better than
73.01% of 1793 companies
in the Hardware industry
Industry Median: 1.7 vs TPE:2374: 0.58

Ability Enterprise Co  (TPE:2374) 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.


Ability Enterprise Co Debt-to-EBITDA Related Terms


Ability Enterprise Co Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Ability Enterprise Co'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.

Ability Enterprise Co Debt-to-EBITDA Chart

Ability Enterprise Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.25 0.88 0.77 0.41 0.45

Ability Enterprise Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.47 0.48 0.23 0.32 0.57

TPE:2374 vs APH, GLW, TEL: Debt-to-EBITDA Comparison

For the Electronic Components subindustry, Ability Enterprise Co'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.


Ability Enterprise Co Debt-to-EBITDA vs Hardware Industry

For the Hardware industry and Technology sector, Ability Enterprise Co's Debt-to-EBITDA distribution charts can be found below:

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


TPE:2374
84GF Score
Ability Enterprise Co Ltd TPE:2374
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ability Enterprise Co Debt-to-EBITDA Calculation

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

Ability Enterprise Co's Debt-to-EBITDA for the fiscal year that ended in Dec. 2025 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(539.633 + 10.691) / 1220.836
=0.45

Ability Enterprise Co's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(525.441 + 276.214) / 1405.512
=0.57

* 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. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 0.57 mean?
Ability Enterprise Co (TPE:2374) has a Debt-to-EBITDA of 0.57 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Ability Enterprise Co. This is 46% above median its historical median of 0.39. According to the industry distribution chart, Ability Enterprise Co ranks #484 out of 1793 companies in the Hardware industry, placing it in the top 27%.
Is Ability Enterprise Co's Debt-to-EBITDA too high?
Ability Enterprise Co's current Debt-to-EBITDA of 0.57 is 46% above median its 10-year median of 0.39. The Hardware industry median Debt-to-EBITDA is 1.70. Ability Enterprise Co's value of 0.57 is 66.5% below this industry median. Based on the distribution chart, Ability Enterprise Co ranks #484 out of 1793 companies in the Hardware industry, which is above the industry midpoint. Overall, Ability Enterprise Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ability Enterprise Co's Debt-to-EBITDA compare to APH and GLW?
According to the Hardware industry distribution chart, Ability Enterprise Co ranks #484 out of 1793 companies for Debt-to-EBITDA. This puts Ability Enterprise Co in the upper half of its industry. The industry median Debt-to-EBITDA is 1.70. Ability Enterprise Co's value of 0.57 is 66.5% below this benchmark. While the company's 10-year median is 0.39 vs. the industry median of 1.70, Ability Enterprise Co 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 Hardware company?
The median Debt-to-EBITDA among Hardware companies is 1.70, based on 1,793 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. Ability Enterprise Co's current Debt-to-EBITDA of 0.57 is 66.5% 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 Ability Enterprise Co. For the Hardware industry, the median Debt-to-EBITDA is 1.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ability Enterprise Co's current Debt-to-EBITDA is 0.57, which is 46% above median its own 10-year median of 0.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ability Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Ability Enterprise Co (TPE:2374) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$85.93, compared to a current price of NT$70.50 — trading 18% below its estimated fair value. The current Debt-to-EBITDA is 0.57, which is 46% above median its 10-year median of 0.39 and 66.5% below the Hardware industry median of 1.70. Ability Enterprise Co's overall GF Score™ is 84/100 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 Ability Enterprise Co (TPE:2374), the current Debt-to-EBITDA is 0.57 as of Mar. 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 Ability Enterprise Co (TPE:2374) Overvalued in 2026?

Based on GuruFocus' analysis, Ability Enterprise Co stock appears to be undervalued. The current stock price of NT$70.50 is trading 18% below its estimated GF Value™ of NT$85.93. GuruFocus considers Ability Enterprise Co to be Modestly Undervalued.

Key valuation signals for TPE:2374:

  • Debt-to-EBITDA: 0.57 (46% above median its 10-year median of 0.39)
  • GF Value™: NT$85.93 vs. price of NT$70.50 (18% below fair value)
  • GF Score™: 84/100 with 3 warning signs
  • Industry Position: 66.5% below the Hardware median (#484 of 1793)

No single metric tells the full story. See the TPE:2374 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ability Enterprise Co Business Description

Address No. 200, Zhonghuan Road, Section 3, Xinzhuang District, New Taipei City, TWN, 242030
Ability Enterprise Co Ltd is mainly engaged in the manufacturing, purchases and sales of digital cameras, optical product components and film/video accessories. The Company's main activities are the manufacturing and sales of optical products, and the strategic investing segment focuses on sales of design and manufacturing of optical elements. It specializes in integrating optics, mechanics, acoustics, electronics, and software. Its product portfolio includes security equipment, home appliances, machine vision systems, video live streaming systems, cloud-based solutions, and automotive imaging applications. Its segments are the optical manufacturing segment, which generates maximum revenue, and the strategic investing segment. The Company generates maximum revenue from Japan.
84GF Score

Get the complete analysis for TPE:2374

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$70.50
Price
NT$85.93
GF Value