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Houlihan LokeyFRA:2HL +1.17%85 Debt-to-Equity is 0.22 as of Jun. 2026, which is 57% above its 10-year median of 0.14. GuruFocus rates FRA:2HL with a GF Score™ of 85/100 and a GF Value™ of €153.41 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 610 Capital Markets companies, Houlihan Lokey ranks better than 57.54% 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 Houlihan Lokey's Debt-to-Equity or its related term are showing as below:
FRA:2HL'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.01 Med: 0.14 Max: 0.27
Current: 0.22
During the past 13 years, the highest Debt-to-Equity Ratio of Houlihan Lokey was 0.27. The lowest was 0.01. And the median was 0.14.
FRA:2HL's Debt-to-Equity is ranked better than 57.54% of 610
companies
in the Capital Markets industry
Industry Median: 0.32
vs FRA:2HL: 0.22
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.
Houlihan Lokey Debt-to-Equity Related Terms
Houlihan Lokey Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Houlihan Lokey'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.
FRA:2HL vs BMNR, WULF, SNEX: Debt-to-Equity Comparison
For the Capital Markets subindustry, Houlihan Lokey'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.
Houlihan Lokey Debt-to-Equity vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Houlihan Lokey's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Houlihan Lokey'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.
Houlihan Lokey (FRA:2HL) has a Debt-to-Equity of 0.22 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Houlihan Lokey and its competitors. This is 57% above median its historical median of 0.14. Over the past decade, Houlihan Lokey's Debt-to-Equity has ranged from 0.01 to 0.27. According to the industry distribution chart, Houlihan Lokey ranks #259 out of 610 companies in the Capital Markets industry, placing it in the top 42.5%.
Is Houlihan Lokey's Debt-to-Equity too high?
Houlihan Lokey's current Debt-to-Equity of 0.22 is 57% above median its 10-year median of 0.14. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.27. The Capital Markets industry median Debt-to-Equity is 0.32. Houlihan Lokey's value of 0.22 is 31.3% below this industry median. Based on the distribution chart, Houlihan Lokey ranks #259 out of 610 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Houlihan Lokey has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Houlihan Lokey's Debt-to-Equity compare to BMNR and WULF?
According to the Capital Markets industry distribution chart, Houlihan Lokey ranks #259 out of 610 companies for Debt-to-Equity. This puts Houlihan Lokey in the upper half of its industry. The industry median Debt-to-Equity is 0.32. Houlihan Lokey's value of 0.22 is 31.3% below this benchmark. Historically, Houlihan Lokey's own Debt-to-Equity has ranged from 0.01 to 0.27 over the past decade. While the company's 10-year median is 0.14 vs. the industry median of 0.32, Houlihan Lokey 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 Capital Markets company?
The median Debt-to-Equity among Capital Markets companies is 0.32, based on 610 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. Houlihan Lokey's current Debt-to-Equity of 0.22 is 31.3% 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 Houlihan Lokey and its competitors. For the Capital Markets industry, the median Debt-to-Equity is 0.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Houlihan Lokey's current Debt-to-Equity is 0.22, which is 57% above median its own 10-year median of 0.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Houlihan Lokey stock overvalued right now?
Based on GuruFocus' analysis, Houlihan Lokey (FRA:2HL) is currently considered Modestly Undervalued. The stock's GF Value™ is €153.41, compared to a current price of €112.50 — trading 26.7% below its estimated fair value. The current Debt-to-Equity is 0.22, which is 57% above median its 10-year median of 0.14 and 31.3% below the Capital Markets industry median of 0.32. Houlihan Lokey's overall GF Score™ is 85/100 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 Houlihan Lokey (FRA:2HL), the current Debt-to-Equity is 0.22 as of Jun. 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 Houlihan Lokey (FRA:2HL) Overvalued in 2026?
Based on GuruFocus' analysis, Houlihan Lokey stock appears to be undervalued.
The current stock price of €112.50 is trading 26.7% below its estimated GF Value™ of €153.41.
GuruFocus considers Houlihan Lokey to be Modestly Undervalued.
Key valuation signals for FRA:2HL:
Debt-to-Equity: 0.22 (57% above median its 10-year median of 0.14)
GF Value™: €153.41 vs. price of €112.50 (26.7% below fair value)
Industry Position: 31.3% below the Capital Markets median (#259 of 610)
No single metric tells the full story. See the FRA:2HL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments world-wide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. The Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.
85GF Score
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