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REE AutomotiveREEAF Debt-to-Equity is 2.84 as of Dec. 2025, which is 112% above its 10-year median of 1.34. The stock has 7 warning signs investors should review. Among 1,218 Vehicles & Parts companies, REE Automotive ranks worse than 95.4% 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 REE Automotive's Debt-to-Equity or its related term are showing as below:
REEAF'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.12 Med: 1.34 Max: 2.84
Current: 2.84
During the past 7 years, the highest Debt-to-Equity Ratio of REE Automotive was 2.84. The lowest was 0.12. And the median was 1.34.
REEAF's Debt-to-Equity is ranked worse than 95.4% of 1218
companies
in the Vehicles & Parts industry
Industry Median: 0.46
vs REEAF: 2.84
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.
REE Automotive Debt-to-Equity Related Terms
REE Automotive Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for REE Automotive'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.
REEAF vs INEO, FFLO, OMTK: Debt-to-Equity Comparison
For the Auto Parts subindustry, REE Automotive'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.
REE Automotive Debt-to-Equity vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, REE Automotive's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where REE Automotive'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.
REE Automotive (REEAF) has a Debt-to-Equity of 2.84 as of Dec. 2025. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on REE Automotive and its competitors. This is 112% above median its historical median of 1.34. Over the past decade, REE Automotive's Debt-to-Equity has ranged from 0.12 to 2.84. According to the industry distribution chart, REE Automotive ranks #1162 out of 1218 companies in the Vehicles & Parts industry, placing it in the top 95.4%.
Is REE Automotive's Debt-to-Equity too high?
REE Automotive's current Debt-to-Equity of 2.84 is 112% above median its 10-year median of 1.34. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 2.84. The Vehicles & Parts industry median Debt-to-Equity is 0.46. REE Automotive's value of 2.84 is 517.4% above this industry median. Based on the distribution chart, REE Automotive ranks #1162 out of 1218 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers.
How does REE Automotive's Debt-to-Equity compare to INEO and FFLO?
According to the Vehicles & Parts industry distribution chart, REE Automotive ranks #1162 out of 1218 companies for Debt-to-Equity. This places REE Automotive in the lower half of its industry. The industry median Debt-to-Equity is 0.46. REE Automotive's value of 2.84 is 517.4% above this benchmark. Historically, REE Automotive's own Debt-to-Equity has ranged from 0.12 to 2.84 over the past decade. While the company's 10-year median is 1.34 vs. the industry median of 0.46, REE Automotive 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 Vehicles & Parts company?
The median Debt-to-Equity among Vehicles & Parts companies is 0.46, based on 1,218 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. REE Automotive's current Debt-to-Equity of 2.84 is 517.4% 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 REE Automotive and its competitors. For the Vehicles & Parts industry, the median Debt-to-Equity is 0.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REE Automotive's current Debt-to-Equity is 2.84, which is 112% above median its own 10-year median of 1.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REE Automotive stock overvalued right now?
Based on GuruFocus' analysis, REE Automotive (REEAF) is currently considered Possible Value Trap. The stock's GF Value™ is $2.75, compared to a current price of $0.05 — trading 98.2% below its estimated fair value. The current Debt-to-Equity is 2.84, which is 112% above median its 10-year median of 1.34 and 517.4% above the Vehicles & Parts industry median of 0.46. 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 REE Automotive (REEAF), the current Debt-to-Equity is 2.84 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.
REE Automotive Ltd is an automotive technology company focused on building commercial electric vehicles controlled fully by-wire. The company is in early stages of commercialization and develop and produce software-defined vehicle (SDV) technology that manages vehicle operations and features through proprietarily-developed software. The company has geographical preference in Israel, Germany, United States, United Kingdom, and other regions.
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