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Red VioletFRA:2KH -0.85%68 Debt-to-Equity is 0.02 as of Jun. 2026, which is 33% below its 10-year median of 0.03. GuruFocus rates FRA:2KH with a GF Score™ of 68/100 and a GF Value™ of €39.90 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,250 Software companies, Red Violet ranks better than 91.33% 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 Red Violet's Debt-to-Equity or its related term are showing as below:
FRA:2KH'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.01 Med: 0.03 Max: 0.11
Current: 0.02
During the past 10 years, the highest Debt-to-Equity Ratio of Red Violet was 0.11. The lowest was 0.01. And the median was 0.03.
FRA:2KH's Debt-to-Equity is ranked better than 91.33% of 2250
companies
in the Software industry
Industry Median: 0.19
vs FRA:2KH: 0.02
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.
Red Violet Debt-to-Equity Related Terms
Red Violet Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Red Violet'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:2KH vs GTM, DJCO, MITK: Debt-to-Equity Comparison
For the Software - Application subindustry, Red Violet'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.
Red Violet Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Red Violet's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Red Violet'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.
Red Violet (FRA:2KH) has a Debt-to-Equity of 0.02 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Red Violet and its competitors. This is 33% below median its historical median of 0.03. Over the past decade, Red Violet's Debt-to-Equity has ranged from 0.01 to 0.11. According to the industry distribution chart, Red Violet ranks #195 out of 2250 companies in the Software industry, placing it in the top 8.7%.
Is Red Violet's Debt-to-Equity too high?
Red Violet's current Debt-to-Equity of 0.02 is 33% below median its 10-year median of 0.03. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.11. The Software industry median Debt-to-Equity is 0.19. Red Violet's value of 0.02 is 89.5% below this industry median. Based on the distribution chart, Red Violet ranks #195 out of 2250 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Red Violet has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Red Violet's Debt-to-Equity compare to GTM and DJCO?
According to the Software industry distribution chart, Red Violet ranks #195 out of 2250 companies for Debt-to-Equity. This places Red Violet in the top 9% of its industry — outperforming the majority of peers. The industry median Debt-to-Equity is 0.19. Red Violet's value of 0.02 is 89.5% below this benchmark. Historically, Red Violet's own Debt-to-Equity has ranged from 0.01 to 0.11 over the past decade. While the company's 10-year median is 0.03 vs. the industry median of 0.19, Red Violet 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 2,250 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. Red Violet's current Debt-to-Equity of 0.02 is 89.5% 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 Red Violet 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. Red Violet's current Debt-to-Equity is 0.02, which is 33% below median its own 10-year median of 0.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Violet stock overvalued right now?
Based on GuruFocus' analysis, Red Violet (FRA:2KH) is currently considered Significantly Overvalued. The stock's GF Value™ is €39.90, compared to a current price of €58.00 — trading 45.4% above its estimated fair value. The current Debt-to-Equity is 0.02, which is 33% below median its 10-year median of 0.03 and 89.5% below the Software industry median of 0.19. Red Violet's overall GF Score™ is 68/100 with 4 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 Red Violet (FRA:2KH), the current Debt-to-Equity is 0.02 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 Red Violet (FRA:2KH) Overvalued in 2026?
Based on GuruFocus' analysis, Red Violet stock appears to be overvalued.
The current stock price of €58.00 is trading 45.4% above its estimated GF Value™ of €39.90.
GuruFocus considers Red Violet to be Significantly Overvalued.
Key valuation signals for FRA:2KH:
Debt-to-Equity: 0.02 (33% below median its 10-year median of 0.03)
GF Value™: €39.90 vs. price of €58.00 (45.4% above fair value)
Industry Position: 89.5% below the Software median (#195 of 2250)
No single metric tells the full story. See the FRA:2KH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red Violet Inc builds proprietary technologies and applies analytical capabilities to deliver identity intelligence. The company's solutions enable the real-time identification and location of people, businesses, assets, and their interrelationships. These solutions are used for purposes including identity verification, risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. Its cloud-native, AI-enabled identity intelligence platform, CORE, is purpose-built for the enterprise, yet flexible enough for organizations of all sizes, bringing clarity to massive datasets by transforming data into intelligence. The company generates substantially all of its revenue from licensing its solutions.
68GF Score
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