Redcentric (CHIX:RCNL) EV-to-EBIT: 19.25 (As of Aug. 16, 2026) — 94% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

CHIX:RCNL Redcentric PLC CHIX:RCNL
44 GF Score
Price £1.10
GF Value £27.82
Valuation Possible Value Trap
! 5 Warning Signs
View Full Analysis

What is Redcentric EV-to-EBIT?

Redcentric CHIX:RCNL +6.28% 44 EV-to-EBIT is 19.25 as of Aug. 16, 2026, which is 94% below its 10-year median of 307.59. GuruFocus rates CHIX:RCNL with a GF Score™ of 44/100 and a GF Value™ of £27.82 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,777 Software companies, Redcentric ranks worse than 62.18% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Redcentric's Enterprise Value is £155.6 Mil. Redcentric's EBIT for the trailing twelve months (TTM) ended in Sep. 2025 was £8.1 Mil. Therefore, Redcentric's EV-to-EBIT for today is 19.25.

The historical rank and industry rank for Redcentric's EV-to-EBIT or its related term are showing as below:

CHIX:RCNl' s EV-to-EBIT Range Over the Past 10 Years
Min: -10665.36   Med: 307.59   Max: 3546.59
Current: 19.25

During the past 13 years, the highest EV-to-EBIT of Redcentric was 3546.59. The lowest was -10665.36. And the median was 307.59.

CHIX:RCNl's EV-to-EBIT is ranked worse than
62.18% of 1777 companies
in the Software industry
Industry Median: 14.19 vs CHIX:RCNl: 19.25

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Redcentric's Enterprise Value for the quarter that ended in Sep. 2025 was £4,400.0 Mil. Redcentric's EBIT for the trailing twelve months (TTM) ended in Sep. 2025 was £8.1 Mil. Redcentric's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2025 was 0.18%.


Redcentric  (CHIX:RCNl) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Redcentric's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2025 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Sep. 2025 ) =EBIT / Enterprise Value (Q: Sep. 2025 )
=8.082/4399.9966
=0.18 %

Redcentric's Enterprise Value for the quarter that ended in Sep. 2025 was £4,400.0 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Redcentric's EBIT for the trailing twelve months (TTM) ended in Sep. 2025 was £8.1 Mil.

* 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.


Redcentric EV-to-EBIT Related Terms


Redcentric EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Redcentric's EV-to-EBIT 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.

Redcentric EV-to-EBIT Chart

Redcentric Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 318.81 533.28 -465.01 747.82 492.13

Redcentric Semi-Annual Data
Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 747.82 0.00 492.13 0.00

CHIX:RCNL vs IBM, ACN, FISV: EV-to-EBIT Comparison

For the Information Technology Services subindustry, Redcentric's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.


Redcentric EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Redcentric's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Redcentric's EV-to-EBIT falls into.


CHIX:RCNL
44GF Score
Redcentric PLC CHIX:RCNL
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Redcentric EV-to-EBIT Calculation

Redcentric's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=155.569/8.082
=19.25

Redcentric's current Enterprise Value is £155.6 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Redcentric's EBIT for the trailing twelve months (TTM) ended in Sep. 2025 was £8.1 Mil.

* 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.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 19.25 mean?
Redcentric (CHIX:RCNL) has a EV-to-EBIT of 19.25 as of Aug. 16, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Redcentric and its competitors. This is 94% below median its historical median of 307.59. According to the industry distribution chart, Redcentric ranks #1105 out of 1777 companies in the Software industry, placing it in the top 62.2%.
Is Redcentric's EV-to-EBIT too high?
Redcentric's current EV-to-EBIT of 19.25 is 94% below median its 10-year median of 307.59. The Software industry median EV-to-EBIT is 14.19. Redcentric's value of 19.25 is 35.7% above this industry median. Based on the distribution chart, Redcentric ranks #1105 out of 1777 companies in the Software industry, which is below the industry midpoint. Overall, Redcentric has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Redcentric's EV-to-EBIT compare to IBM and ACN?
According to the Software industry distribution chart, Redcentric ranks #1105 out of 1777 companies for EV-to-EBIT. This places Redcentric in the lower half of its industry. The industry median EV-to-EBIT is 14.19. Redcentric's value of 19.25 is 35.7% above this benchmark. While the company's 10-year median is 307.59 vs. the industry median of 14.19, Redcentric 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 EV-to-EBIT for a Software company?
The median EV-to-EBIT among Software companies is 14.19, based on 1,777 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Redcentric's current EV-to-EBIT of 19.25 is 35.7% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Redcentric and its competitors. For the Software industry, the median EV-to-EBIT is 14.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redcentric's current EV-to-EBIT is 19.25, which is 94% below median its own 10-year median of 307.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redcentric stock overvalued right now?
Based on GuruFocus' analysis, Redcentric (CHIX:RCNL) is currently considered Possible Value Trap. The stock's GF Value™ is £27.82, compared to a current price of £1.10 — trading 96% below its estimated fair value. The current EV-to-EBIT is 19.25, which is 94% below median its 10-year median of 307.59 and 35.7% above the Software industry median of 14.19. Redcentric's overall GF Score™ is 44/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Redcentric (CHIX:RCNL), the current EV-to-EBIT is 19.25 as of Aug. 16, 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 Redcentric (CHIX:RCNL) Overvalued in 2026?

Based on GuruFocus' analysis, Redcentric stock appears to be undervalued. The current stock price of £1.10 is trading 96% below its estimated GF Value™ of £27.82. GuruFocus considers Redcentric to be Possible Value Trap.

Key valuation signals for CHIX:RCNL:

  • EV-to-EBIT: 19.25 (94% below median its 10-year median of 307.59)
  • GF Value™: £27.82 vs. price of £1.10 (96% below fair value)
  • GF Score™: 44/100 with 5 warning signs
  • Industry Position: 35.7% above the Software median (#1105 of 1777)

No single metric tells the full story. See the CHIX:RCNL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Redcentric Business Description

Other Exchanges RCN:UK
Address Central House, Beckwith Knowle, Harrogate, North Yorkshire, GBR, HG3 1UG
Redcentric PLC provides information technology managed services. The company's services offering includes application, collaboration, infrastructure, network, mobile, and IT security services. Its services are offered to various industries including construction and property, education, finance, healthcare, insurance, legal, retail, and software providers. Its segments consist of Recurring, Services, and Products. The majority of its revenue is derived from the provision of its services to customers under long-term agreements, including data, connectivity, hosting, cloud, and support services.
44GF Score

Get the complete analysis for CHIX:RCNL

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£1.10
Price
£27.82
GF Value