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 Applied Digital's Debt-to-Equity or its related term are showing as below:
XSWX:APLD'
s Debt-to-Equity Range Over the Past 10 Years
Min: -1.69 Med: 0.81 Max: 2.48
Current: 1.79
During the past 13 years, the highest Debt-to-Equity Ratio of Applied Digital was 2.48. The lowest was -1.69. And the median was 0.81.
XSWX:APLD's Debt-to-Equity is ranked worse than 92.9% of 2238
companies
in the Software industry
Industry Median: 0.19
vs XSWX:APLD: 1.79
Applied Digital (XSWX:APLD) 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.
Applied Digital Debt-to-Equity Related Terms
Applied Digital Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Applied Digital'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 Information Technology Services subindustry, Applied Digital'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.
Applied Digital Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Applied Digital's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Applied Digital'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.
Applied Digital (XSWX:APLD) has a Debt-to-Equity of 1.79 as of Feb. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Applied Digital and its competitors. This is 121% above median its historical median of 0.81. According to the industry distribution chart, Applied Digital ranks #2079 out of 2238 companies in the Software industry, placing it in the top 92.9%.
Is Applied Digital's Debt-to-Equity too high?
Applied Digital's current Debt-to-Equity of 1.79 is 121% above median its 10-year median of 0.81. The Software industry median Debt-to-Equity is 0.19. Applied Digital's value of 1.79 is 842.1% above this industry median. Based on the distribution chart, Applied Digital ranks #2079 out of 2238 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Applied Digital has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Applied Digital's Debt-to-Equity compare to ?
According to the Software industry distribution chart, Applied Digital ranks #2079 out of 2238 companies for Debt-to-Equity. This places Applied Digital in the lower half of its industry. The industry median Debt-to-Equity is 0.19. Applied Digital's value of 1.79 is 842.1% above this benchmark. While the company's 10-year median is 0.81 vs. the industry median of 0.19, Applied Digital 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. Applied Digital's current Debt-to-Equity of 1.79 is 842.1% 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 Applied Digital 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. Applied Digital's current Debt-to-Equity is 1.79, which is 121% above median its own 10-year median of 0.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Digital stock overvalued right now?
Applied Digital (XSWX:APLD) has a current Debt-to-Equity of 1.79. The stock's GF Value™ is CHF11.40, compared to a current price of CHF27.30 — trading 139.5% above its estimated fair value. The current Debt-to-Equity is 1.79, which is 121% above median its 10-year median of 0.81 and 842.1% above the Software industry median of 0.19. Applied Digital's overall GF Score™ is 38/100 with 7 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 Applied Digital (XSWX:APLD), the current Debt-to-Equity is 1.79 as of Feb. 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 Applied Digital (XSWX:APLD) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Digital stock appears to be overvalued.
The current stock price of CHF27.30 is trading 139.5% above its estimated GF Value™ of CHF11.40.
Key valuation signals for XSWX:APLD:
Debt-to-Equity: 1.79 (121% above median its 10-year median of 0.81)
GF Value™: CHF11.40 vs. price of CHF27.30 (139.5% above fair value)
Industry Position: 842.1% above the Software median (#2079 of 2238)
No single metric tells the full story. See the XSWX:APLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.
38GF Score
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