PDF SolutionsPDFS -11.51%77 Debt-to-Equity is 0.26 as of Mar. 2026, which is 550% above its 10-year median of 0.04. GuruFocus rates PDFS with a GF Score™ of 77/100 and a GF Value™ of $41.71 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,238 Software companies, PDF Solutions ranks worse than 56.7% 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 PDF Solutions's Debt-to-Equity or its related term are showing as below:
PDFS'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.02 Med: 0.04 Max: 0.3
Current: 0.26
During the past 13 years, the highest Debt-to-Equity Ratio of PDF Solutions was 0.30. The lowest was 0.02. And the median was 0.04.
PDFS's Debt-to-Equity is ranked worse than 56.7% of 2238
companies
in the Software industry
Industry Median: 0.19
vs PDFS: 0.26
PDF Solutions (NAS:PDFS) Debt-to-Equity Explanation
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.
PDF Solutions Debt-to-Equity Related Terms
PDF Solutions Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for PDF Solutions'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.
For the Software - Application subindustry, PDF Solutions'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.
PDF Solutions Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, PDF Solutions's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where PDF Solutions'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.
PDF Solutions (PDFS) has a Debt-to-Equity of 0.26 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on PDF Solutions and its competitors. This is 550% above median its historical median of 0.04. Over the past decade, PDF Solutions' Debt-to-Equity has ranged from 0.02 to 0.30. According to the industry distribution chart, PDF Solutions ranks #1269 out of 2238 companies in the Software industry, placing it in the top 56.7%.
Is PDF Solutions' Debt-to-Equity too high?
PDF Solutions' current Debt-to-Equity of 0.26 is 550% above median its 10-year median of 0.04. Over the past 10 years, this metric has ranged from a low of 0.02 to a high of 0.30. The Software industry median Debt-to-Equity is 0.19. PDF Solutions' value of 0.26 is 36.8% above this industry median. Based on the distribution chart, PDF Solutions ranks #1269 out of 2238 companies in the Software industry, which is below the industry midpoint. Overall, PDF Solutions has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PDF Solutions' Debt-to-Equity compare to FSLY and KC?
According to the Software industry distribution chart, PDF Solutions ranks #1269 out of 2238 companies for Debt-to-Equity. This places PDF Solutions in the lower half of its industry. The industry median Debt-to-Equity is 0.19. PDF Solutions' value of 0.26 is 36.8% above this benchmark. Historically, PDF Solutions' own Debt-to-Equity has ranged from 0.02 to 0.30 over the past decade. While the company's 10-year median is 0.04 vs. the industry median of 0.19, PDF Solutions 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-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.19, based on 2,238 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. PDF Solutions's current Debt-to-Equity of 0.26 is 36.8% 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-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 PDF Solutions 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. PDF Solutions's current Debt-to-Equity is 0.26, which is 550% above median its own 10-year median of 0.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PDF Solutions stock overvalued right now?
Based on GuruFocus' analysis, PDF Solutions (PDFS) is currently considered Significantly Overvalued. The stock's GF Value™ is $41.71, compared to a current price of $59.18 — trading 41.9% above its estimated fair value. The current Debt-to-Equity is 0.26, which is 550% above median its 10-year median of 0.04 and 36.8% above the Software industry median of 0.19. PDF Solutions' overall GF Score™ is 77/100 with 6 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 PDF Solutions (PDFS), the current Debt-to-Equity is 0.26 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 PDF Solutions (PDFS) Overvalued in 2026?
Based on GuruFocus' analysis, PDF Solutions stock appears to be overvalued.
The current stock price of $59.18 is trading 41.9% above its estimated GF Value™ of $41.71.
GuruFocus considers PDF Solutions to be Significantly Overvalued.
Key valuation signals for PDFS:
Debt-to-Equity: 0.26 (550% above median its 10-year median of 0.04)
GF Value™: $41.71 vs. price of $59.18 (41.9% above fair value)
Industry Position: 36.8% above the Software median (#1269 of 2238)
No single metric tells the full story. See the PDFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PDF Solutions Inc provides products and services designed to empower organizations across the semiconductor and electronics ecosystem to connect, collect, manage, and analyze data about design, equipment, manufacturing, and test to improve the yield and quality of their products and operational efficiency. The Company's products, services, and solutions include proprietary software, physical intellectual property (IP) for integrated circuit (IC) designs, electrical measurement hardware tools, methodologies, and professional services.
77GF Score
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