CloudflareXSWX:NET 78 Debt-to-Equity is 2.31 as of Mar. 2026, which is 50% above its 10-year median of 1.54. GuruFocus rates XSWX:NET with a GF Score™ of 78/100 and a GF Value™ of CHF142.50. The stock has 3 warning signs investors should review. Among 2,238 Software companies, Cloudflare ranks worse than 95.04% 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 Cloudflare's Debt-to-Equity or its related term are showing as below:
XSWX:NET'
s Debt-to-Equity Range Over the Past 10 Years
Min: -0.18 Med: 1.54 Max: 3.06
Current: 2.31
During the past 10 years, the highest Debt-to-Equity Ratio of Cloudflare was 3.06. The lowest was -0.18. And the median was 1.54.
XSWX:NET's Debt-to-Equity is ranked worse than 95.04% of 2238
companies
in the Software industry
Industry Median: 0.19
vs XSWX:NET: 2.31
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.
Cloudflare Debt-to-Equity Related Terms
Cloudflare Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for Cloudflare'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 - Infrastructure subindustry, Cloudflare'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.
Cloudflare Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, Cloudflare's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where Cloudflare'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.
Cloudflare (XSWX:NET) has a Debt-to-Equity of 2.31 as of Mar. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on Cloudflare and its competitors. This is 50% above median its historical median of 1.54. According to the industry distribution chart, Cloudflare ranks #2127 out of 2238 companies in the Software industry, placing it in the top 95%.
Is Cloudflare's Debt-to-Equity too high?
Cloudflare's current Debt-to-Equity of 2.31 is 50% above median its 10-year median of 1.54. The Software industry median Debt-to-Equity is 0.19. Cloudflare's value of 2.31 is 1115.8% above this industry median. Based on the distribution chart, Cloudflare ranks #2127 out of 2238 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Cloudflare has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does Cloudflare's Debt-to-Equity compare to ?
According to the Software industry distribution chart, Cloudflare ranks #2127 out of 2238 companies for Debt-to-Equity. This places Cloudflare in the lower half of its industry. The industry median Debt-to-Equity is 0.19. Cloudflare's value of 2.31 is 1115.8% above this benchmark. While the company's 10-year median is 1.54 vs. the industry median of 0.19, Cloudflare 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. Cloudflare's current Debt-to-Equity of 2.31 is 1115.8% 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 Cloudflare 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. Cloudflare's current Debt-to-Equity is 2.31, which is 50% above median its own 10-year median of 1.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cloudflare stock overvalued right now?
Cloudflare (XSWX:NET) has a current Debt-to-Equity of 2.31. The stock's GF Value™ is CHF142.50, compared to a current price of CHF195.52 — trading 37.2% above its estimated fair value. The current Debt-to-Equity is 2.31, which is 50% above median its 10-year median of 1.54 and 1115.8% above the Software industry median of 0.19. Cloudflare's overall GF Score™ is 78/100 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 Cloudflare (XSWX:NET), the current Debt-to-Equity is 2.31 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 Cloudflare (XSWX:NET) Overvalued in 2026?
Based on GuruFocus' analysis, Cloudflare stock appears to be overvalued.
The current stock price of CHF195.52 is trading 37.2% above its estimated GF Value™ of CHF142.50.
Key valuation signals for XSWX:NET:
Debt-to-Equity: 2.31 (50% above median its 10-year median of 1.54)
GF Value™: CHF142.50 vs. price of CHF195.52 (37.2% above fair value)
Industry Position: 1115.8% above the Software median (#2127 of 2238)
No single metric tells the full story. See the XSWX:NET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, builds on this infrastructure by enabling clients to deploy and run code without the need to manage or maintain servers.
78GF Score
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