TWER (Towerstream) Debt-to-EBITDA : 21.24 (As of Dec. 2018)

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What is Towerstream Debt-to-EBITDA?

Towerstream TWER Debt-to-EBITDA is 21.24 as of Dec. 2018.

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

Towerstream's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2018 was $39.04 Mil. Towerstream's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2018 was $0.30 Mil. Towerstream's annualized EBITDA for the quarter that ended in Dec. 2018 was $1.85 Mil. Towerstream's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2018 was 21.24.

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 Towerstream's Debt-to-EBITDA or its related term are showing as below:

TWER's Debt-to-EBITDA is not ranked *
in the Telecommunication Services industry.
Industry Median: 1.95
* Ranked among companies with meaningful Debt-to-EBITDA only.

Towerstream  (OTCPK:TWER) 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.


Towerstream Debt-to-EBITDA Related Terms


Towerstream Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Towerstream'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.

Towerstream Debt-to-EBITDA Chart

Towerstream Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 85.58 -11.86 -15.04 -56.01 13.95

Towerstream Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
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 -15.16 29.48 7.53 10.82 21.24

TWER vs FULO, DTGI: Debt-to-EBITDA Comparison

For the Telecom Services subindustry, Towerstream'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.


Towerstream Debt-to-EBITDA vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Towerstream's Debt-to-EBITDA distribution charts can be found below:

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



Towerstream Debt-to-EBITDA Calculation

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

Towerstream's Debt-to-EBITDA for the fiscal year that ended in Dec. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(39.041 + 0.296) / 2.82
=13.95

Towerstream's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2018 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(39.041 + 0.296) / 1.852
=21.24

* 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 (Dec. 2018) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 21.24 mean?
Towerstream (TWER) has a Debt-to-EBITDA of 21.24 as of Dec. 2018. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Towerstream.
Is Towerstream's Debt-to-EBITDA too high?
Towerstream's current Debt-to-EBITDA is 21.24. The Telecommunication Services industry median Debt-to-EBITDA is 1.95. Towerstream's value of 21.24 is 989.2% above this industry median.
How does Towerstream's Debt-to-EBITDA compare to FULO and DTGI?
Towerstream's Debt-to-EBITDA of 21.24 can be compared against companies in the Telecommunication Services industry. The industry median Debt-to-EBITDA is 1.95. Towerstream's value of 21.24 is 989.2% 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 Telecommunication Services company?
The median Debt-to-EBITDA among Telecommunication Services companies is 1.95, based on 304 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. Towerstream's current Debt-to-EBITDA of 21.24 is 989.2% 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 Towerstream. For the Telecommunication Services industry, the median Debt-to-EBITDA is 1.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Towerstream's current Debt-to-EBITDA is 21.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Towerstream stock overvalued right now?
Towerstream (TWER) has a current Debt-to-EBITDA of 21.24. The current Debt-to-EBITDA is 21.24 and 989.2% above the Telecommunication Services industry median of 1.95. 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 Towerstream (TWER), the current Debt-to-EBITDA is 21.24 as of Dec. 2018. 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.

Towerstream Business Description

Address 76 Hammarlund Way, Middletown, RI, USA, 02842
Towerstream Corp is a US-based company providing fixed wireless services. The company operates through the Fixed Wireless Services business segment. Its fixed wireless service provides bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. The company installs receivers and antennas on rooftops to establish a wireless connection between the customer Location to one or more of its points of presence.