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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Ion Video's Degree of Financial Leverage for the quarter that ended in Dec. 2025 was -0.73. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Ion Video's Degree of Financial Leverage or its related term are showing as below:
FRA:3O2's Degree of Financial Leverage is ranked better than 91.28% of 2695
companies
in the Software industry
Industry Median: 0.97
vs FRA:3O2: -0.73
Ion Video (FRA:3O2) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Ion Video Degree of Financial Leverage Related Terms
Ion Video Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Ion Video's Degree of Financial Leverage 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:3O2 vs QH, SHOP, UBER: Degree of Financial Leverage Comparison
For the Software - Application subindustry, Ion Video's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage 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.
Ion Video Degree of Financial Leverage vs Software Industry
For the Software industry and Technology sector, Ion Video's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Ion Video's Degree of Financial Leverage 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.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of -0.73 mean?
Ion Video (FRA:3O2) has a Degree of Financial Leverage of -0.73 as of Dec. 2025. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Ion Video and its competitors. According to the industry distribution chart, Ion Video ranks #235 out of 2695 companies in the Software industry, placing it in the top 8.7%.
Is Ion Video's Degree of Financial Leverage too high?
Ion Video's current Degree of Financial Leverage is -0.73. Based on the distribution chart, Ion Video ranks #235 out of 2695 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Ion Video has a GF Score™ of 27/100, reflecting its overall financial health beyond just this single metric.
How does Ion Video's Degree of Financial Leverage compare to QH and SHOP?
According to the Software industry distribution chart, Ion Video ranks #235 out of 2695 companies for Degree of Financial Leverage. This places Ion Video in the top 9% of its industry — outperforming the majority of peers. The industry median Degree of Financial Leverage is 0.97. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Software company?
The median Degree of Financial Leverage among Software companies is 0.97, based on 2,695 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Ion Video and its competitors. For the Software industry, the median Degree of Financial Leverage is 0.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ion Video's current Degree of Financial Leverage is -0.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ion Video stock overvalued right now?
Ion Video (FRA:3O2) has a current Degree of Financial Leverage of -0.73. The stock's GF Value™ is €0.09, compared to a current price of €0.26 — trading 190% above its estimated fair value. The current Degree of Financial Leverage is -0.73. Ion Video's overall GF Score™ is 27/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Ion Video (FRA:3O2), the current Degree of Financial Leverage is -0.73 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.
Is Ion Video (FRA:3O2) Overvalued in 2026?
Based on GuruFocus' analysis, Ion Video stock appears to be overvalued.
The current stock price of €0.26 is trading 190% above its estimated GF Value™ of €0.09.
Key valuation signals for FRA:3O2:
Degree of Financial Leverage: -0.73
GF Value™: €0.09 vs. price of €0.26 (190% above fair value)
No single metric tells the full story. See the FRA:3O2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ion Video Ltd is engaged in Development and commercialization of video file technology. It finds, curates, and utilizes the valuable moments across vast libraries of video, enabling viewers to create an infinite amount of personalized video compilations on-the-fly, providing relevant content to each viewer. The company's patented Video Virtualisation Engine (VVE) turns big, bulky video files into lightweight, searchable data that is enriched with Al and ML, making it easy and efficient for users to find and share what matters to them.
27GF Score
Get the complete analysis for FRA:3O2
Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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