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Headwaters CoTSE:4011 +12.68%74 EV-to-EBIT is 54.61 as of Sep. 05, 2026, which is 45% below its 10-year median of 98.69. GuruFocus rates TSE:4011 with a GF Score™ of 74/100 and a GF Value™ of 円5,705.18 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,770 Software companies, Headwaters Co ranks worse than 83.5% 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.
Headwaters Co's Enterprise Value for the quarter that ended in Jun. 2026 was 円10,966 Mil.
Headwaters Co's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円267 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.
Headwaters Co EV-to-EBIT Related Terms
Headwaters Co EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Headwaters Co'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.
TSE:4011 vs CRM, SHOP, UBER: EV-to-EBIT Comparison
For the Software - Application subindustry, Headwaters Co'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.
Headwaters Co EV-to-EBIT vs Software Industry
For the Software industry and Technology sector, Headwaters Co's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Headwaters Co's EV-to-EBIT falls into.
Headwaters Co's current Enterprise Value is 円14,591 Mil.
Headwaters Co's EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was 円267 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.
Headwaters Co (TSE:4011) has a EV-to-EBIT of 54.61 as of Sep. 05, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Headwaters Co and its competitors. This is 45% below median its historical median of 98.69. According to the industry distribution chart, Headwaters Co ranks #1478 out of 1770 companies in the Software industry, placing it in the top 83.5%.
Is Headwaters Co's EV-to-EBIT too high?
Headwaters Co's current EV-to-EBIT of 54.61 is 45% below median its 10-year median of 98.69. The Software industry median EV-to-EBIT is 13.85. Headwaters Co's value of 54.61 is 294.3% above this industry median. Based on the distribution chart, Headwaters Co ranks #1478 out of 1770 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Headwaters Co has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Headwaters Co's EV-to-EBIT compare to CRM and SHOP?
According to the Software industry distribution chart, Headwaters Co ranks #1478 out of 1770 companies for EV-to-EBIT. This places Headwaters Co in the lower half of its industry. The industry median EV-to-EBIT is 13.85. Headwaters Co's value of 54.61 is 294.3% above this benchmark. While the company's 10-year median is 98.69 vs. the industry median of 13.85, Headwaters Co 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 13.85, based on 1,770 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. Headwaters Co's current EV-to-EBIT of 54.61 is 294.3% 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 Headwaters Co and its competitors. For the Software industry, the median EV-to-EBIT is 13.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Headwaters Co's current EV-to-EBIT is 54.61, which is 45% below median its own 10-year median of 98.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Headwaters Co stock overvalued right now?
Based on GuruFocus' analysis, Headwaters Co (TSE:4011) is currently considered Possible Value Trap. The stock's GF Value™ is 円5,705.18, compared to a current price of 円2,603.00 — trading 54.4% below its estimated fair value. The current EV-to-EBIT is 54.61, which is 45% below median its 10-year median of 98.69 and 294.3% above the Software industry median of 13.85. Headwaters Co's overall GF Score™ is 74/100 with 8 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 Headwaters Co (TSE:4011), the current EV-to-EBIT is 54.61 as of Sep. 05, 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 Headwaters Co (TSE:4011) Overvalued in 2026?
Based on GuruFocus' analysis, Headwaters Co stock appears to be undervalued.
The current stock price of 円2,603.00 is trading 54.4% below its estimated GF Value™ of 円5,705.18.
GuruFocus considers Headwaters Co to be Possible Value Trap.
Key valuation signals for TSE:4011:
EV-to-EBIT: 54.61 (45% below median its 10-year median of 98.69)
GF Value™: 円5,705.18 vs. price of 円2,603.00 (54.4% below fair value)
Industry Position: 294.3% above the Software median (#1478 of 1770)
No single metric tells the full story. See the TSE:4011 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Headwaters Co Ltd is engaged in the planning and development of artificial intelligence (AI) applications. It develops AI-related businesses such as AI platform operation, AI application development, robot application development, and cloud service operation. The group has a single segment, the AI solutions business.
74GF Score
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