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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 Elements's Debt-to-EBITDA or its related term are showing as below:
TSE:5246'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -6.98 Med: -1.89 Max: 8.65
Current: 4.5
During the past 6 years, the highest Debt-to-EBITDA Ratio of Elements was 8.65. The lowest was -6.98. And the median was -1.89.
TSE:5246's Debt-to-EBITDA is ranked worse than 85.3% of 1735
companies
in the Software industry
Industry Median: 0.98
vs TSE:5246: 4.50
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.
Elements Debt-to-EBITDA Related Terms
Elements Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Elements'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.
TSE:5246 vs QH, SHOP, UBER: Debt-to-EBITDA Comparison
For the Software - Application subindustry, Elements'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.
Elements Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Elements's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Elements'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 (May. 2026) EBITDA data.
Elements (TSE:5246) has a Debt-to-EBITDA of 1.12 as of May. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Elements. According to the industry distribution chart, Elements ranks #1480 out of 1735 companies in the Software industry, placing it in the top 85.3%.
Is Elements' Debt-to-EBITDA too high?
Elements' current Debt-to-EBITDA is 1.12. The Software industry median Debt-to-EBITDA is 0.98. Elements' value of 1.12 is 14.3% above this industry median. Based on the distribution chart, Elements ranks #1480 out of 1735 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Elements has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elements' Debt-to-EBITDA compare to QH and SHOP?
According to the Software industry distribution chart, Elements ranks #1480 out of 1735 companies for Debt-to-EBITDA. This places Elements in the lower half of its industry. The industry median Debt-to-EBITDA is 0.98. Elements' value of 1.12 is 14.3% 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 0.98, based on 1,735 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. Elements's current Debt-to-EBITDA of 1.12 is 14.3% 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 Elements. For the Software industry, the median Debt-to-EBITDA is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elements's current Debt-to-EBITDA is 1.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elements stock overvalued right now?
Based on GuruFocus' analysis, Elements (TSE:5246) is currently considered Possible Value Trap. The stock's GF Value™ is 円1,327.41, compared to a current price of 円838.00 — trading 36.9% below its estimated fair value. The current Debt-to-EBITDA is 1.12 and 14.3% above the Software industry median of 0.98. Elements' overall GF Score™ is 65/100 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 Elements (TSE:5246), the current Debt-to-EBITDA is 1.12 as of May. 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 Elements (TSE:5246) Overvalued in 2026?
Based on GuruFocus' analysis, Elements stock appears to be undervalued.
The current stock price of 円838.00 is trading 36.9% below its estimated GF Value™ of 円1,327.41.
GuruFocus considers Elements to be Possible Value Trap.
Key valuation signals for TSE:5246:
Debt-to-EBITDA: 1.12
GF Value™: 円1,327.41 vs. price of 円838.00 (36.9% below fair value)
Industry Position: 14.3% above the Software median (#1480 of 1735)
No single metric tells the full story. See the TSE:5246 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elements Inc is engaged in the development and provision of personal authentication solutions such as LIQUID eKYC, an online identity verification service, that utilizes biometrics, image analysis and machine learning technologies, as well as personal optimization solutions for clothing, food and shelter.
65GF Score
Get the complete analysis for TSE:5246
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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