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WaterdropWDH -2.68%65 Debt-to-EBITDA is 0.92 as of Mar. 2026, which is 2967% above its 10-year median of 0.03. GuruFocus rates WDH with a GF Score™ of 65/100 and a GF Value™ of $2.30 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 319 Insurance companies, Waterdrop ranks better than 61.44% 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 Waterdrop's Debt-to-EBITDA or its related term are showing as below:
WDH'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -0.23 Med: 0.03 Max: 29.03
Current: 0.81
During the past 8 years, the highest Debt-to-EBITDA Ratio of Waterdrop was 29.03. The lowest was -0.23. And the median was 0.03.
WDH's Debt-to-EBITDA is ranked better than 61.44% of 319
companies
in the Insurance industry
Industry Median: 1.19
vs WDH: 0.81
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.
Waterdrop Debt-to-EBITDA Related Terms
Waterdrop Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Waterdrop'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.
For the Insurance - Diversified subindustry, Waterdrop'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.
Waterdrop Debt-to-EBITDA vs Insurance Industry
For the Insurance industry and Financial Services sector, Waterdrop's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Waterdrop'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.
Waterdrop (WDH) has a Debt-to-EBITDA of 0.92 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 Waterdrop. This is 2967% above median its historical median of 0.03. According to the industry distribution chart, Waterdrop ranks #123 out of 319 companies in the Insurance industry, placing it in the top 38.6%.
Is Waterdrop's Debt-to-EBITDA too high?
Waterdrop's current Debt-to-EBITDA of 0.92 is 2967% above median its 10-year median of 0.03. The Insurance industry median Debt-to-EBITDA is 1.19. Waterdrop's value of 0.92 is 22.7% below this industry median. Based on the distribution chart, Waterdrop ranks #123 out of 319 companies in the Insurance industry, which is above the industry midpoint. Overall, Waterdrop 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 Waterdrop's Debt-to-EBITDA compare to SUND and IGIC?
According to the Insurance industry distribution chart, Waterdrop ranks #123 out of 319 companies for Debt-to-EBITDA. This puts Waterdrop in the upper half of its industry. The industry median Debt-to-EBITDA is 1.19. Waterdrop's value of 0.92 is 22.7% below this benchmark. While the company's 10-year median is 0.03 vs. the industry median of 1.19, Waterdrop 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 an Insurance company?
The median Debt-to-EBITDA among Insurance companies is 1.19, based on 319 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. Waterdrop's current Debt-to-EBITDA of 0.92 is 22.7% 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 Waterdrop. For the Insurance industry, the median Debt-to-EBITDA is 1.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Waterdrop's current Debt-to-EBITDA is 0.92, which is 2967% above median its own 10-year median of 0.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Waterdrop stock overvalued right now?
Based on GuruFocus' analysis, Waterdrop (WDH) is currently considered Possible Value Trap. The stock's GF Value™ is $2.30, compared to a current price of $1.09 — trading 52.6% below its estimated fair value. The current Debt-to-EBITDA is 0.92, which is 2967% above median its 10-year median of 0.03 and 22.7% below the Insurance industry median of 1.19. Waterdrop's overall GF Score™ is 65/100 with 6 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 Waterdrop (WDH), the current Debt-to-EBITDA is 0.92 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 Waterdrop (WDH) Overvalued in 2026?
Based on GuruFocus' analysis, Waterdrop stock appears to be undervalued.
The current stock price of $1.09 is trading 52.6% below its estimated GF Value™ of $2.30.
GuruFocus considers Waterdrop to be Possible Value Trap.
Key valuation signals for WDH:
Debt-to-EBITDA: 0.92 (2967% above median its 10-year median of 0.03)
GF Value™: $2.30 vs. price of $1.09 (52.6% below fair value)
Industry Position: 22.7% below the Insurance median (#123 of 319)
No single metric tells the full story. See the WDH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Waterdrop Inc is a technology platform dedicated to insurance and healthcare service. The Company is mainly engaged in operating an independent third-party insurance platform dedicated to providing insurance and healthcare service. The Companies main businesses are the insurance marketplace, medical crowdfunding, and mutual aid. The companies reportable segments are Insurance, Crowdfunding and Others.
65GF Score
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