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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).
NetLink NBN Trust's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 0.79. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for NetLink NBN Trust's Degree of Financial Leverage or its related term are showing as below:
NETLF's Degree of Financial Leverage is ranked better than 62.99% of 354
companies
in the Telecommunication Services industry
Industry Median: 1.04
vs NETLF: 0.79
NetLink NBN Trust (OTCPK:NETLF) 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.
NetLink NBN Trust Degree of Financial Leverage Related Terms
NetLink NBN Trust Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for NetLink NBN Trust'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.
NetLink NBN Trust Degree of Financial Leverage Chart
NETLF vs VZ, TMUS, T: Degree of Financial Leverage Comparison
For the Telecom Services subindustry, NetLink NBN Trust'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.
NetLink NBN Trust Degree of Financial Leverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, NetLink NBN Trust's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where NetLink NBN Trust'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 0.79 mean?
NetLink NBN Trust (NETLF) has a Degree of Financial Leverage of 0.79 as of Mar. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for NetLink NBN Trust and its competitors. According to the industry distribution chart, NetLink NBN Trust ranks #131 out of 354 companies in the Telecommunication Services industry, placing it in the top 37%.
Is NetLink NBN Trust's Degree of Financial Leverage too high?
NetLink NBN Trust's current Degree of Financial Leverage is 0.79. The Telecommunication Services industry median Degree of Financial Leverage is 1.04. NetLink NBN Trust's value of 0.79 is 24% below this industry median. Based on the distribution chart, NetLink NBN Trust ranks #131 out of 354 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, NetLink NBN Trust has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does NetLink NBN Trust's Degree of Financial Leverage compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, NetLink NBN Trust ranks #131 out of 354 companies for Degree of Financial Leverage. This puts NetLink NBN Trust in the upper half of its industry. The industry median Degree of Financial Leverage is 1.04. NetLink NBN Trust's value of 0.79 is 24% below this benchmark. 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 Telecommunication Services company?
The median Degree of Financial Leverage among Telecommunication Services companies is 1.04, based on 354 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. NetLink NBN Trust's current Degree of Financial Leverage of 0.79 is 24% below 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 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 NetLink NBN Trust and its competitors. For the Telecommunication Services industry, the median Degree of Financial Leverage is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NetLink NBN Trust's current Degree of Financial Leverage is 0.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NetLink NBN Trust stock overvalued right now?
NetLink NBN Trust (NETLF) has a current Degree of Financial Leverage of 0.79. The stock's GF Value™ is $0.68, compared to a current price of $0.77 — trading 13.1% above its estimated fair value. The current Degree of Financial Leverage is 0.79 and 24% below the Telecommunication Services industry median of 1.04. NetLink NBN Trust's overall GF Score™ is 64/100 with 10 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 NetLink NBN Trust (NETLF), the current Degree of Financial Leverage is 0.79 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 NetLink NBN Trust (NETLF) Overvalued in 2026?
Based on GuruFocus' analysis, NetLink NBN Trust stock appears to be overvalued.
The current stock price of $0.77 is trading 13.1% above its estimated GF Value™ of $0.68.
Key valuation signals for NETLF:
Degree of Financial Leverage: 0.79
GF Value™: $0.68 vs. price of $0.77 (13.1% above fair value)
Industry Position: 24% below the Telecommunication Services median (#131 of 354)
No single metric tells the full story. See the NETLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NetLink NBN Trust is a national provider of internet service. It designs, builds, owns, and operates network infrastructure comprising ducts, manholes, and fiber cables. Its non-building address point (NBAP) applications include infrastructure for telecommunications operators such as wireless network base stations, cameras, sensors, signage, and outdoor kiosks. The company generates the majority of its revenue from Installation-related revenue and Ancillary project revenue. The company operates in Singapore, the USA, the UK, and the rest of the World.
64GF Score
Get the complete analysis for NETLF
Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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