Privasia Technology BhdXKLS:0123 -6.25% Degree of Financial Leverage is 1.41 as of Mar. 2026. The stock has 5 warning signs investors should review. Among 2,682 Software companies, Privasia Technology Bhd ranks worse than 76.66% on this metric.
Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Privasia Technology Bhd's Degree of Financial Leverage for the quarter that ended in Mar. 2026 was 1.41. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Privasia Technology Bhd's Degree of Financial Leverage or its related term are showing as below:
XKLS:0123's Degree of Financial Leverage is ranked worse than 76.66% of 2682
companies
in the Software industry
Industry Median: 0.97
vs XKLS:0123: 1.41
Privasia Technology Bhd (XKLS:0123) 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.
Privasia Technology Bhd Degree of Financial Leverage Related Terms
Privasia Technology Bhd Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Privasia Technology Bhd'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.
Privasia Technology Bhd Degree of Financial Leverage Chart
XKLS:0123 vs IBM, ACN, FISV: Degree of Financial Leverage Comparison
For the Information Technology Services subindustry, Privasia Technology Bhd'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.
Privasia Technology Bhd Degree of Financial Leverage vs Software Industry
For the Software industry and Technology sector, Privasia Technology Bhd's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Privasia Technology Bhd'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 1.41 mean?
Privasia Technology Bhd (XKLS:0123) has a Degree of Financial Leverage of 1.41 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 Privasia Technology Bhd and its competitors. According to the industry distribution chart, Privasia Technology Bhd ranks #2056 out of 2682 companies in the Software industry, placing it in the top 76.7%.
Is Privasia Technology Bhd's Degree of Financial Leverage too high?
Privasia Technology Bhd's current Degree of Financial Leverage is 1.41. The Software industry median Degree of Financial Leverage is 0.97. Privasia Technology Bhd's value of 1.41 is 45.4% above this industry median. Based on the distribution chart, Privasia Technology Bhd ranks #2056 out of 2682 companies in the Software industry, which is in the bottom quartile relative to peers.
How does Privasia Technology Bhd's Degree of Financial Leverage compare to IBM and ACN?
According to the Software industry distribution chart, Privasia Technology Bhd ranks #2056 out of 2682 companies for Degree of Financial Leverage. This places Privasia Technology Bhd in the lower half of its industry. The industry median Degree of Financial Leverage is 0.97. Privasia Technology Bhd's value of 1.41 is 45.4% above 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 Software company?
The median Degree of Financial Leverage among Software companies is 0.97, based on 2,682 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. Privasia Technology Bhd's current Degree of Financial Leverage of 1.41 is 45.4% 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 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 Privasia Technology Bhd 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. Privasia Technology Bhd's current Degree of Financial Leverage is 1.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Privasia Technology Bhd stock overvalued right now?
Based on GuruFocus' analysis, Privasia Technology Bhd (XKLS:0123) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.23, compared to a current price of RM0.08 — trading 67.4% below its estimated fair value. The current Degree of Financial Leverage is 1.41 and 45.4% above the Software industry median of 0.97. 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 Privasia Technology Bhd (XKLS:0123), the current Degree of Financial Leverage is 1.41 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.
Privasia Technology Bhd is an Information technology company. The company's operating segment includes Information Technology (IT), Information and Communications Technology (ICT), Satellite-based network services (SAT), and Investment holding. The Information technology segment comprises IT infrastructure outsourcing, consultancy and systems integration, and procurement management; ICT segment provides wireless broadband infrastructure, comprehensive mobile and wireless communications consultancy, and systems development for ICT; and The SAT segment provides a broad spectrum of satellite-based network solutions, such as, value-added broadband applications and satellite IP Virtual Private Network for the commercial sector and general public. Geographically, it operates only in Malaysia.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XKLS:0123 has been successfully added to your 