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 Western Digital's Debt-to-EBITDA or its related term are showing as below:
XSWX:WDC'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.21 Med: 4.25 Max: 30.59
Current: 0.21
During the past 13 years, the highest Debt-to-EBITDA Ratio of Western Digital was 30.59. The lowest was 0.21. And the median was 4.25.
XSWX:WDC's Debt-to-EBITDA is ranked better than 85.47% of 1790
companies
in the Hardware industry
Industry Median: 1.715
vs XSWX:WDC: 0.21
Western Digital (XSWX:WDC) 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.
Western Digital Debt-to-EBITDA Related Terms
Western Digital Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Western Digital'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:WDC vs STX, ANET, DELL: Debt-to-EBITDA Comparison
For the Computer Hardware subindustry, Western Digital'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.
Western Digital Debt-to-EBITDA vs Hardware Industry
For the Hardware industry and Technology sector, Western Digital's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Western Digital'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.
Western Digital (XSWX:WDC) has a Debt-to-EBITDA of 0.11 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 Western Digital. This is 97% below median its historical median of 4.25. Over the past decade, Western Digital's Debt-to-EBITDA has ranged from 0.21 to 30.59. According to the industry distribution chart, Western Digital ranks #260 out of 1790 companies in the Hardware industry, placing it in the top 14.5%.
Is Western Digital's Debt-to-EBITDA too high?
Western Digital's current Debt-to-EBITDA of 0.11 is 97% below median its 10-year median of 4.25. Over the past 10 years, this metric has ranged from a low of 0.21 to a high of 30.59. The Hardware industry median Debt-to-EBITDA is 1.72. Western Digital's value of 0.11 is 93.6% below this industry median. Based on the distribution chart, Western Digital ranks #260 out of 1790 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Western Digital has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Western Digital's Debt-to-EBITDA compare to STX and ANET?
According to the Hardware industry distribution chart, Western Digital ranks #260 out of 1790 companies for Debt-to-EBITDA. This places Western Digital in the top 15% of its industry — outperforming the majority of peers. The industry median Debt-to-EBITDA is 1.72. Western Digital's value of 0.11 is 93.6% below this benchmark. Historically, Western Digital's own Debt-to-EBITDA has ranged from 0.21 to 30.59 over the past decade. While the company's 10-year median is 4.25 vs. the industry median of 1.72, Western Digital 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 a Hardware company?
The median Debt-to-EBITDA among Hardware companies is 1.72, based on 1,790 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. Western Digital's current Debt-to-EBITDA of 0.11 is 93.6% 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 Western Digital. For the Hardware industry, the median Debt-to-EBITDA is 1.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Digital's current Debt-to-EBITDA is 0.11, which is 97% below median its own 10-year median of 4.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Digital stock overvalued right now?
Western Digital (XSWX:WDC) has a current Debt-to-EBITDA of 0.11. The stock's GF Value™ is CHF20.85, compared to a current price of CHF450.90 — trading 2062.6% above its estimated fair value. The current Debt-to-EBITDA is 0.11, which is 97% below median its 10-year median of 4.25 and 93.6% below the Hardware industry median of 1.72. Western Digital's overall GF Score™ is 60/100 with 2 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 Western Digital (XSWX:WDC), the current Debt-to-EBITDA is 0.11 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 Western Digital (XSWX:WDC) Overvalued in 2026?
Based on GuruFocus' analysis, Western Digital stock appears to be overvalued.
The current stock price of CHF450.90 is trading 2062.6% above its estimated GF Value™ of CHF20.85.
Key valuation signals for XSWX:WDC:
Debt-to-EBITDA: 0.11 (97% below median its 10-year median of 4.25)
GF Value™: CHF20.85 vs. price of CHF450.90 (2062.6% above fair value)
Industry Position: 93.6% below the Hardware median (#260 of 1790)
No single metric tells the full story. See the XSWX:WDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Digital is a leading vertically integrated supplier of hard disk drives. The HDD market is a practical duopoly, with Western Digital and Seagate being the two largest players. Western Digital designs and manufactures its HDDs, with much of the manufacturing and workforce located in Asia. The primary consumers of HDDs are data centers.
60GF Score
Get the complete analysis for XSWX:WDC
Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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