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MegaportASX:MP1 -8.48%78 Debt-to-Equity is 0.17 as of Dec. 2025, which is 70% above its 10-year median of 0.10. GuruFocus rates ASX:MP1 with a GF Score™ of 78/100 and a GF Value™ of A$17.66 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,245 Software companies, Megaport ranks better than 53.67% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for Megaport's Debt-to-Equity or its related term are showing as below:
ASX:MP1'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0 Med: 0.1 Max: 0.19
Current: 0.17
During the past 10 years, the highest Debt-to-Equity Ratio of Megaport was 0.19. The lowest was 0.00. And the median was 0.10.
ASX:MP1's Debt-to-Equity is ranked better than 53.67% of 2245
companies
in the Software industry
Industry Median: 0.19
vs ASX:MP1: 0.17
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
Megaport Debt-to-Equity Related Terms
Megaport Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Megaport's Debt-to-Equity 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.
ASX:MP1 vs MSFT, ORCL, PLTR: Debt-to-Equity Comparison
For the Software - Infrastructure subindustry, Megaport's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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.
Megaport Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Megaport's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Megaport's Debt-to-Equity 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.
Megaport (ASX:MP1) has a Debt-to-Equity of 0.17 as of Dec. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Megaport and its competitors. This is 70% above median its historical median of 0.10. According to the industry distribution chart, Megaport ranks #1040 out of 2245 companies in the Software industry, placing it in the top 46.3%.
Is Megaport's Debt-to-Equity too high?
Megaport's current Debt-to-Equity of 0.17 is 70% above median its 10-year median of 0.10. The Software industry median Debt-to-Equity is 0.19. Megaport's value of 0.17 is 10.5% below this industry median. Based on the distribution chart, Megaport ranks #1040 out of 2245 companies in the Software industry, which is above the industry midpoint. Overall, Megaport has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Megaport's Debt-to-Equity compare to MSFT and ORCL?
According to the Software industry distribution chart, Megaport ranks #1040 out of 2245 companies for Debt-to-Equity. This puts Megaport in the upper half of its industry. The industry median Debt-to-Equity is 0.19. Megaport's value of 0.17 is 10.5% below this benchmark. While the company's 10-year median is 0.10 vs. the industry median of 0.19, Megaport 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-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.19, based on 2,245 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Megaport's current Debt-to-Equity of 0.17 is 10.5% 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-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Megaport and its competitors. For the Software industry, the median Debt-to-Equity is 0.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Megaport's current Debt-to-Equity is 0.17, which is 70% above median its own 10-year median of 0.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megaport stock overvalued right now?
Based on GuruFocus' analysis, Megaport (ASX:MP1) is currently considered Fairly Valued. The stock's GF Value™ is A$17.66, compared to a current price of A$18.23 — trading 3.2% above its estimated fair value. The current Debt-to-Equity is 0.17, which is 70% above median its 10-year median of 0.10 and 10.5% below the Software industry median of 0.19. Megaport's overall GF Score™ is 78/100 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-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For Megaport (ASX:MP1), the current Debt-to-Equity is 0.17 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 Megaport (ASX:MP1) Overvalued in 2026?
Based on GuruFocus' analysis, Megaport stock appears to be overvalued.
The current stock price of A$18.23 is trading 3.2% above its estimated GF Value™ of A$17.66.
GuruFocus considers Megaport to be Fairly Valued.
Key valuation signals for ASX:MP1:
Debt-to-Equity: 0.17 (70% above median its 10-year median of 0.10)
GF Value™: A$17.66 vs. price of A$18.23 (3.2% above fair value)
Industry Position: 10.5% below the Software median (#1040 of 2245)
No single metric tells the full story. See the ASX:MP1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Megaport is one of the world's largest software-defined network service providers, enabling around 3,000 enterprise customers to connect to over 1,000 data centers throughout the world. Megaport's services mostly revolve around enabling enterprises to connect to cloud service providers, like Amazon Web Services, but it also offers services to enable businesses to connect across multiple data centers, to internet exchanges, and to buy compute capacity.
78GF Score
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