Penguin SolutionsPENG +25.14%69 EV-to-EBIT is 33.96 as of Jul. 08, 2026, which is 45% above its 10-year median of 23.38. GuruFocus rates PENG with a GF Score™ of 69/100 and a GF Value™ of $24.09 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,756 Software companies, Penguin Solutions ranks worse than 80.58% on this metric.
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.
Penguin Solutions's Enterprise Value for the quarter that ended in May. 2026 was $3,355 Mil.
Penguin Solutions's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $125 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.
Penguin Solutions EV-to-EBIT Related Terms
Penguin Solutions EV-to-EBIT Historical Data
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The historical data trend for Penguin Solutions'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.
For the Information Technology Services subindustry, Penguin Solutions'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.
Penguin Solutions EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Penguin Solutions's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Penguin Solutions's EV-to-EBIT falls into.
Penguin Solutions's current Enterprise Value is $4,260 Mil.
Penguin Solutions's EBIT for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $125 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.
Penguin Solutions (PENG) has a EV-to-EBIT of 33.96 as of Jul. 08, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Penguin Solutions and its competitors. This is 45% above median its historical median of 23.38. According to the industry distribution chart, Penguin Solutions ranks #1415 out of 1756 companies in the Software industry, placing it in the top 80.6%.
Is Penguin Solutions' EV-to-EBIT too high?
Penguin Solutions' current EV-to-EBIT of 33.96 is 45% above median its 10-year median of 23.38. The Software industry median EV-to-EBIT is 14.39. Penguin Solutions' value of 33.96 is 136% above this industry median. Based on the distribution chart, Penguin Solutions ranks #1415 out of 1756 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Penguin Solutions has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Penguin Solutions' EV-to-EBIT compare to CHRN and PONY?
According to the Software industry distribution chart, Penguin Solutions ranks #1415 out of 1756 companies for EV-to-EBIT. This places Penguin Solutions in the lower half of its industry. The industry median EV-to-EBIT is 14.39. Penguin Solutions' value of 33.96 is 136% above this benchmark. While the company's 10-year median is 23.38 vs. the industry median of 14.39, Penguin Solutions 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 14.39, based on 1,756 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. Penguin Solutions's current EV-to-EBIT of 33.96 is 136% 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 Penguin Solutions and its competitors. For the Software industry, the median EV-to-EBIT is 14.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Penguin Solutions's current EV-to-EBIT is 33.96, which is 45% above median its own 10-year median of 23.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Penguin Solutions stock overvalued right now?
Based on GuruFocus' analysis, Penguin Solutions (PENG) is currently considered Significantly Overvalued. The stock's GF Value™ is $24.09, compared to a current price of $78.47 — trading 225.7% above its estimated fair value. The current EV-to-EBIT is 33.96, which is 45% above median its 10-year median of 23.38 and 136% above the Software industry median of 14.39. Penguin Solutions' overall GF Score™ is 69/100 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 Penguin Solutions (PENG), the current EV-to-EBIT is 33.96 as of Jul. 08, 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 Penguin Solutions (PENG) Overvalued in 2026?
Based on GuruFocus' analysis, Penguin Solutions stock appears to be overvalued.
The current stock price of $78.47 is trading 225.7% above its estimated GF Value™ of $24.09.
GuruFocus considers Penguin Solutions to be Significantly Overvalued.
Key valuation signals for PENG:
EV-to-EBIT: 33.96 (45% above median its 10-year median of 23.38)
GF Value™: $24.09 vs. price of $78.47 (225.7% above fair value)
Industry Position: 136% above the Software median (#1415 of 1756)
No single metric tells the full story. See the PENG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Penguin Solutions Inc is an end-to-end technology company engaged in Intelligent Platform Solutions, Integrated Memory, and Optimized LED business. Its product include Servers, software, OCP HPC & AI system, Racks and Edge. Servers include AMD-based Serves, Intel-based Servers, etc. Software products include Scyld ClusterWare, Scyld Cloud Central, etc. OCP HPC & AI Systems includes OCP Servers & Storage and etc.
69GF Score
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