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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 Varonis Systems's Debt-to-EBITDA or its related term are showing as below:
VRNS'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -11.21 Med: -3.7 Max: -0.81
Current: -5.31
During the past 13 years, the highest Debt-to-EBITDA Ratio of Varonis Systems was -0.81. The lowest was -11.21. And the median was -3.70.
VRNS's Debt-to-EBITDA is ranked worse than 100% of 1716
companies
in the Software industry
Industry Median: 1.085
vs VRNS: -5.31
Varonis Systems (NAS:VRNS) 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.
Varonis Systems Debt-to-EBITDA Related Terms
Varonis Systems Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Varonis Systems'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.
VRNS vs RELY, ZETA, WEX: Debt-to-EBITDA Comparison
For the Software - Infrastructure subindustry, Varonis Systems'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.
Varonis Systems Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, Varonis Systems's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Varonis Systems'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 (Mar. 2026) EBITDA data.
Varonis Systems (VRNS) has a Debt-to-EBITDA of -3.19 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 Varonis Systems. According to the industry distribution chart, Varonis Systems ranks #999999 out of 1716 companies in the Software industry.
Is Varonis Systems' Debt-to-EBITDA too high?
Varonis Systems' current Debt-to-EBITDA is -3.19. Based on the distribution chart, Varonis Systems ranks #999999 out of 1716 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Varonis Systems has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Varonis Systems' Debt-to-EBITDA compare to RELY and ZETA?
According to the Software industry distribution chart, Varonis Systems ranks #999999 out of 1716 companies for Debt-to-EBITDA. This places Varonis Systems in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. 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 1.09, based on 1,716 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. 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 Varonis Systems. For the Software industry, the median Debt-to-EBITDA is 1.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varonis Systems's current Debt-to-EBITDA is -3.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varonis Systems stock overvalued right now?
Based on GuruFocus' analysis, Varonis Systems (VRNS) is currently considered Modestly Undervalued. The stock's GF Value™ is $54.87, compared to a current price of $47.45 — trading 13.5% below its estimated fair value. The current Debt-to-EBITDA is -3.19. Varonis Systems' overall GF Score™ is 75/100 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 Varonis Systems (VRNS), the current Debt-to-EBITDA is -3.19 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 Varonis Systems (VRNS) Overvalued in 2026?
Based on GuruFocus' analysis, Varonis Systems stock appears to be undervalued.
The current stock price of $47.45 is trading 13.5% below its estimated GF Value™ of $54.87.
GuruFocus considers Varonis Systems to be Modestly Undervalued.
Key valuation signals for VRNS:
Debt-to-EBITDA: -3.19
GF Value™: $54.87 vs. price of $47.45 (13.5% below fair value)
No single metric tells the full story. See the VRNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varonis Systems is a cybersecurity vendor focused on data privacy and security. The firm is currently undergoing a cloud transition as it weans its on-premises customers over to its cloud products that are delivered as software-as-a-service. The New York-based firm was founded in 2005 and went public in 2014.
75GF Score
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