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74SoftwareXPAR:74SW -1.66%71 Debt-to-EBITDA is 1.89 as of Dec. 2025, which is 2% below its 10-year median of 1.93. GuruFocus rates XPAR:74SW with a GF Score™ of 71/100 and a GF Value™ of €40.12 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,716 Software companies, 74Software ranks worse than 71.5% 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 74Software's Debt-to-EBITDA or its related term are showing as below:
XPAR:74SW'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -4.08 Med: 1.93 Max: 4.29
Current: 2.62
During the past 13 years, the highest Debt-to-EBITDA Ratio of 74Software was 4.29. The lowest was -4.08. And the median was 1.93.
XPAR:74SW's Debt-to-EBITDA is ranked worse than 71.5% of 1716
companies
in the Software industry
Industry Median: 1.085
vs XPAR:74SW: 2.62
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.
74Software Debt-to-EBITDA Related Terms
74Software Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for 74Software'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.
XPAR:74SW vs UBER, SHOP, CRM: Debt-to-EBITDA Comparison
For the Software - Application subindustry, 74Software'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.
74Software Debt-to-EBITDA vs Software Industry
For the Software industry and Technology sector, 74Software's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where 74Software'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 two times the quarterly (Dec. 2025) EBITDA data.
74Software (XPAR:74SW) has a Debt-to-EBITDA of 1.89 as of Dec. 2025. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on 74Software. This is near median its historical median of 1.93. According to the industry distribution chart, 74Software ranks #1227 out of 1716 companies in the Software industry, placing it in the top 71.5%.
Is 74Software's Debt-to-EBITDA too high?
74Software's current Debt-to-EBITDA of 1.89 is near median its 10-year median of 1.93. The Software industry median Debt-to-EBITDA is 1.09. 74Software's value of 1.89 is 74.2% above this industry median. Based on the distribution chart, 74Software ranks #1227 out of 1716 companies in the Software industry, which is below the industry midpoint. Overall, 74Software has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does 74Software's Debt-to-EBITDA compare to UBER and SHOP?
According to the Software industry distribution chart, 74Software ranks #1227 out of 1716 companies for Debt-to-EBITDA. This places 74Software in the lower half of its industry. The industry median Debt-to-EBITDA is 1.09. 74Software's value of 1.89 is 74.2% above this benchmark. While the company's 10-year median is 1.93 vs. the industry median of 1.09, 74Software has consistently been above 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 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. 74Software's current Debt-to-EBITDA of 1.89 is 74.2% 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 74Software. 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. 74Software's current Debt-to-EBITDA is 1.89, which is near median its own 10-year median of 1.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is 74Software stock overvalued right now?
Based on GuruFocus' analysis, 74Software (XPAR:74SW) is currently considered Modestly Undervalued. The stock's GF Value™ is €40.12, compared to a current price of €35.60 — trading 11.3% below its estimated fair value. The current Debt-to-EBITDA is 1.89, which is near median its 10-year median of 1.93 and 74.2% above the Software industry median of 1.09. 74Software's overall GF Score™ is 71/100 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 74Software (XPAR:74SW), the current Debt-to-EBITDA is 1.89 as of Dec. 2025. 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 74Software (XPAR:74SW) Overvalued in 2026?
Based on GuruFocus' analysis, 74Software stock appears to be undervalued.
The current stock price of €35.60 is trading 11.3% below its estimated GF Value™ of €40.12.
GuruFocus considers 74Software to be Modestly Undervalued.
Key valuation signals for XPAR:74SW:
Debt-to-EBITDA: 1.89 (near median its 10-year median of 1.93)
GF Value™: €40.12 vs. price of €35.60 (11.3% below fair value)
Industry Position: 74.2% above the Software median (#1227 of 1716)
No single metric tells the full story. See the XPAR:74SW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
74Software operates a portfolio of enterprise software solutions through brands like Axway and SBS, which are used across different industries. Its portfolio of software solutions specializes in Managed File Transfer (MFT), API Management (APIM), and B2B integration, among other specialised products. Additionally, the Group offers integrated banking software products that offer transaction, account, compliance, and risk management solutions; a SaaS banking platform; and other solutions across the payments, lending, and processing space. Its operating segments are: SBS, which generates the maximum revenue, and Axway. Geographically, the Group generates maximum revenue from Europe, and the rest from the Americas, Middle East and Africa, and Asia-Pacific region.
71GF Score
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