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AR Advanced TechnologyTSE:5578 +2.15%57 Debt-to-EBITDA is 0.86 as of Feb. 2026, which is 41% below its 10-year median of 1.47. GuruFocus rates TSE:5578 with a GF Score™ of 57/100 and a GF Value™ of 円1,151.47 (Modestly Undervalued). Among 1,735 Software companies, AR Advanced Technology ranks worse than 51.07% 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 AR Advanced Technology's Debt-to-EBITDA or its related term are showing as below:
TSE:5578'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.59 Med: 1.47 Max: 1.66
Current: 1.03
During the past 5 years, the highest Debt-to-EBITDA Ratio of AR Advanced Technology was 1.66. The lowest was 0.59. And the median was 1.47.
TSE:5578's Debt-to-EBITDA is ranked worse than 51.07% of 1735
companies
in the Software industry
Industry Median: 0.98
vs TSE:5578: 1.03
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.
AR Advanced Technology Debt-to-EBITDA Related Terms
AR Advanced Technology Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for AR Advanced Technology'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:5578 vs IBM, ACN, FISV: Debt-to-EBITDA Comparison
For the Information Technology Services subindustry, AR Advanced Technology'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.
AR Advanced Technology Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, AR Advanced Technology's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where AR Advanced Technology'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 (Feb. 2026) EBITDA data.
AR Advanced Technology (TSE:5578) has a Debt-to-EBITDA of 0.86 as of Feb. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on AR Advanced Technology. This is 41% below median its historical median of 1.47. Over the past decade, AR Advanced Technology's Debt-to-EBITDA has ranged from 0.59 to 1.66. According to the industry distribution chart, AR Advanced Technology ranks #886 out of 1735 companies in the Software industry, placing it in the top 51.1%.
Is AR Advanced Technology's Debt-to-EBITDA too high?
AR Advanced Technology's current Debt-to-EBITDA of 0.86 is 41% below median its 10-year median of 1.47. Over the past 10 years, this metric has ranged from a low of 0.59 to a high of 1.66. The Software industry median Debt-to-EBITDA is 0.98. AR Advanced Technology's value of 0.86 is 12.2% below this industry median. Based on the distribution chart, AR Advanced Technology ranks #886 out of 1735 companies in the Software industry, which is below the industry midpoint. Overall, AR Advanced Technology has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does AR Advanced Technology's Debt-to-EBITDA compare to IBM and ACN?
According to the Software industry distribution chart, AR Advanced Technology ranks #886 out of 1735 companies for Debt-to-EBITDA. This places AR Advanced Technology in the lower half of its industry. The industry median Debt-to-EBITDA is 0.98. AR Advanced Technology's value of 0.86 is 12.2% below this benchmark. Historically, AR Advanced Technology's own Debt-to-EBITDA has ranged from 0.59 to 1.66 over the past decade. While the company's 10-year median is 1.47 vs. the industry median of 0.98, AR Advanced Technology 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 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. AR Advanced Technology's current Debt-to-EBITDA of 0.86 is 12.2% 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 AR Advanced Technology. 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. AR Advanced Technology's current Debt-to-EBITDA is 0.86, which is 41% below median its own 10-year median of 1.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AR Advanced Technology stock overvalued right now?
Based on GuruFocus' analysis, AR Advanced Technology (TSE:5578) is currently considered Modestly Undervalued. The stock's GF Value™ is 円1,151.47, compared to a current price of 円855.00 — trading 25.7% below its estimated fair value. The current Debt-to-EBITDA is 0.86, which is 41% below median its 10-year median of 1.47 and 12.2% below the Software industry median of 0.98. AR Advanced Technology's overall GF Score™ is 57/100. 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 AR Advanced Technology (TSE:5578), the current Debt-to-EBITDA is 0.86 as of Feb. 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 AR Advanced Technology (TSE:5578) Overvalued in 2026?
Based on GuruFocus' analysis, AR Advanced Technology stock appears to be undervalued.
The current stock price of 円855.00 is trading 25.7% below its estimated GF Value™ of 円1,151.47.
GuruFocus considers AR Advanced Technology to be Modestly Undervalued.
Key valuation signals for TSE:5578:
Debt-to-EBITDA: 0.86 (41% below median its 10-year median of 1.47)
GF Value™: 円1,151.47 vs. price of 円855.00 (25.7% below fair value)
Industry Position: 12.2% below the Software median (#886 of 1735)
No single metric tells the full story. See the TSE:5578 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AR Advanced Technology Inc is engaged in the DX solution business utilizing cloud technology, data analysis, and AI. It provides a comprehensive service that goes beyond simple system introduction. Its products and services include Loogue faq, an AI chatbot that is specialized in employee inquiries; Zidoma data which may be useful to reduce fileserver operating costs; and Mieta a cloud contact center analysis management service.
57GF Score
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