Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
NestleXSWX:NESN +0.21%79 Debt-to-EBITDA is 3.90 as of Dec. 2025, which is 47% above its 10-year median of 2.66. GuruFocus rates XSWX:NESN with a GF Score™ of 79/100 and a GF Value™ of CHF88.75 (Fairly Valued). The stock has 9 warning signs investors should review. Among 1,549 Consumer Packaged Goods companies, Nestle ranks worse than 67.98% 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 Nestle's Debt-to-EBITDA or its related term are showing as below:
XSWX:NESN'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.41 Med: 2.66 Max: 3.57
Current: 3.57
During the past 13 years, the highest Debt-to-EBITDA Ratio of Nestle was 3.57. The lowest was 1.41. And the median was 2.66.
XSWX:NESN's Debt-to-EBITDA is ranked worse than 67.98% of 1549
companies
in the Consumer Packaged Goods industry
Industry Median: 2.08
vs XSWX:NESN: 3.57
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.
Nestle Debt-to-EBITDA Related Terms
Nestle Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Nestle'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.
XSWX:NESN vs KHC, GIS, HRL: Debt-to-EBITDA Comparison
For the Packaged Foods subindustry, Nestle'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.
Nestle Debt-to-EBITDA vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Nestle'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.
Nestle (XSWX:NESN) has a Debt-to-EBITDA of 3.90 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 Nestle. This is 47% above median its historical median of 2.66. Over the past decade, Nestle's Debt-to-EBITDA has ranged from 1.41 to 3.57. According to the industry distribution chart, Nestle ranks #1053 out of 1549 companies in the Consumer Packaged Goods industry, placing it in the top 68%.
Is Nestle's Debt-to-EBITDA too high?
Nestle's current Debt-to-EBITDA of 3.90 is 47% above median its 10-year median of 2.66. Over the past 10 years, this metric has ranged from a low of 1.41 to a high of 3.57. The Consumer Packaged Goods industry median Debt-to-EBITDA is 2.08. Nestle's value of 3.90 is 87.5% above this industry median. Based on the distribution chart, Nestle ranks #1053 out of 1549 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Nestle has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nestle's Debt-to-EBITDA compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle ranks #1053 out of 1549 companies for Debt-to-EBITDA. This places Nestle in the lower half of its industry. The industry median Debt-to-EBITDA is 2.08. Nestle's value of 3.90 is 87.5% above this benchmark. Historically, Nestle's own Debt-to-EBITDA has ranged from 1.41 to 3.57 over the past decade. While the company's 10-year median is 2.66 vs. the industry median of 2.08, Nestle 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 Consumer Packaged Goods company?
The median Debt-to-EBITDA among Consumer Packaged Goods companies is 2.08, based on 1,549 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. Nestle's current Debt-to-EBITDA of 3.90 is 87.5% 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 Nestle. For the Consumer Packaged Goods industry, the median Debt-to-EBITDA is 2.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle's current Debt-to-EBITDA is 3.90, which is 47% above median its own 10-year median of 2.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle stock overvalued right now?
Based on GuruFocus' analysis, Nestle (XSWX:NESN) is currently considered Fairly Valued. The stock's GF Value™ is CHF88.75, compared to a current price of CHF85.73 — trading 3.4% below its estimated fair value. The current Debt-to-EBITDA is 3.90, which is 47% above median its 10-year median of 2.66 and 87.5% above the Consumer Packaged Goods industry median of 2.08. Nestle's overall GF Score™ is 79/100 with 9 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 Nestle (XSWX:NESN), the current Debt-to-EBITDA is 3.90 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 Nestle (XSWX:NESN) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle stock appears to be undervalued.
The current stock price of CHF85.73 is trading 3.4% below its estimated GF Value™ of CHF88.75.
GuruFocus considers Nestle to be Fairly Valued.
Key valuation signals for XSWX:NESN:
Debt-to-EBITDA: 3.90 (47% above median its 10-year median of 2.66)
GF Value™: CHF88.75 vs. price of CHF85.73 (3.4% below fair value)
Industry Position: 87.5% above the Consumer Packaged Goods median (#1053 of 1549)
No single metric tells the full story. See the XSWX:NESN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
With a 150-year-plus history, Nestle is the largest food and beverage manufacturer in the world by sales, generating roughly CHF 90 billion in annual revenue. Its diverse product portfolio includes brands such as Nescafe, Maggi, Nespresso, and Purina. The company employs 270,000 people around the world and has a vast portfolio of global products, with more than 30 brands each achieving more than CHF 1 billion in sales annually and a geographic presence that spans 185 countries.
79GF Score
Get the complete analysis for XSWX:NESN
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:NESN has been successfully added to your 
