ReadyTech Holdings (ASX:RDY) EV-to-EBITDA: 7.96 (As of Sep. 02, 2026) — 48% 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.

ASX:RDY ReadyTech Holdings Ltd ASX:RDY
78 GF Score
Price A$1.50
GF Value A$2.99
Valuation Possible Value Trap
! 4 Warning Signs
View Full Analysis

What is ReadyTech Holdings EV-to-EBITDA?

ReadyTech Holdings ASX:RDY -2.28% 78 EV-to-EBITDA is 7.96 as of Sep. 02, 2026, which is 48% below its 10-year median of 15.39. GuruFocus rates ASX:RDY with a GF Score™ of 78/100 and a GF Value™ of A$2.99 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,954 Software companies, ReadyTech Holdings ranks better than 62.79% on this metric.

EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, ReadyTech Holdings's enterprise value is A$221.4 Mil. ReadyTech Holdings's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was A$27.8 Mil. Therefore, ReadyTech Holdings's EV-to-EBITDA for today is 7.96.

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

ASX:RDY' s EV-to-EBITDA Range Over the Past 10 Years
Min: 7.95   Med: 15.39   Max: 31.02
Current: 7.95

During the past 8 years, the highest EV-to-EBITDA of ReadyTech Holdings was 31.02. The lowest was 7.95. And the median was 15.39.

ASX:RDY's EV-to-EBITDA is ranked better than
62.79% of 1954 companies
in the Software industry
Industry Median: 10.51 vs ASX:RDY: 7.95

EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.

As of today (2026-09-02), ReadyTech Holdings's stock price is A$1.50. ReadyTech Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 was A$-0.040. Therefore, ReadyTech Holdings's PE Ratio (TTM) for today is At Loss.

The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).


ReadyTech Holdings  (ASX:RDY) EV-to-EBITDA Explanation

EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

ReadyTech Holdings's PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=1.50/-0.040
=At Loss

ReadyTech Holdings's share price for today is A$1.50.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. ReadyTech Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 was A$-0.040.

* 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.

Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).

Please read Which price ratio outperforms the enterprise multiple?


ReadyTech Holdings EV-to-EBITDA Related Terms


ReadyTech Holdings EV-to-EBITDA Historical Data

* Premium members only.

The historical data trend for ReadyTech Holdings's EV-to-EBITDA 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.

ReadyTech Holdings EV-to-EBITDA Chart

ReadyTech Holdings Annual Data
Trend Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
EV-to-EBITDA
Get a 7-Day Free Trial 13.50 15.48 12.84 21.77 8.69

ReadyTech Holdings Semi-Annual Data
Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
EV-to-EBITDA 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 12.84 0.00 21.77 0.00 8.69

ASX:RDY vs CRM, SHOP, UBER: EV-to-EBITDA Comparison

For the Software - Application subindustry, ReadyTech Holdings's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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.


ReadyTech Holdings EV-to-EBITDA vs Software Industry

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

* The bar in red indicates where ReadyTech Holdings's EV-to-EBITDA falls into.


ASX:RDY
78GF Score
ReadyTech Holdings Ltd ASX:RDY
EV-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ReadyTech Holdings EV-to-EBITDA Calculation

ReadyTech Holdings's EV-to-EBITDA for today is calculated as:

EV-to-EBITDA=Enterprise Value (Today)/EBITDA (TTM)
=221.353/27.811
=7.96

ReadyTech Holdings's current Enterprise Value is A$221.4 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. ReadyTech Holdings's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was A$27.8 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-EBITDA →
What does a EV-to-EBITDA of 7.96 mean?
ReadyTech Holdings (ASX:RDY) has a EV-to-EBITDA of 7.96 as of Sep. 02, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on ReadyTech Holdings. This is 48% below median its historical median of 15.39. Over the past decade, ReadyTech Holdings' EV-to-EBITDA has ranged from 7.95 to 31.02. According to the industry distribution chart, ReadyTech Holdings ranks #727 out of 1954 companies in the Software industry, placing it in the top 37.2%.
Is ReadyTech Holdings' EV-to-EBITDA too high?
ReadyTech Holdings' current EV-to-EBITDA of 7.96 is 48% below median its 10-year median of 15.39. Over the past 10 years, this metric has ranged from a low of 7.95 to a high of 31.02. The Software industry median EV-to-EBITDA is 10.51. ReadyTech Holdings' value of 7.96 is 24.3% below this industry median. Based on the distribution chart, ReadyTech Holdings ranks #727 out of 1954 companies in the Software industry, which is above the industry midpoint. Overall, ReadyTech Holdings has a GF Score™ of 78/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ReadyTech Holdings' EV-to-EBITDA compare to CRM and SHOP?
According to the Software industry distribution chart, ReadyTech Holdings ranks #727 out of 1954 companies for EV-to-EBITDA. This puts ReadyTech Holdings in the upper half of its industry. The industry median EV-to-EBITDA is 10.51. ReadyTech Holdings' value of 7.96 is 24.3% below this benchmark. Historically, ReadyTech Holdings' own EV-to-EBITDA has ranged from 7.95 to 31.02 over the past decade. While the company's 10-year median is 15.39 vs. the industry median of 10.51, ReadyTech Holdings has consistently been below 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-EBITDA for a Software company?
The median EV-to-EBITDA among Software companies is 10.51, based on 1,954 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ReadyTech Holdings's current EV-to-EBITDA of 7.96 is 24.3% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on ReadyTech Holdings. For the Software industry, the median EV-to-EBITDA is 10.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReadyTech Holdings's current EV-to-EBITDA is 7.96, which is 48% below median its own 10-year median of 15.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReadyTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, ReadyTech Holdings (ASX:RDY) is currently considered Possible Value Trap. The stock's GF Value™ is A$2.99, compared to a current price of A$1.50 — trading 49.8% below its estimated fair value. The current EV-to-EBITDA is 7.96, which is 48% below median its 10-year median of 15.39 and 24.3% below the Software industry median of 10.51. ReadyTech Holdings' overall GF Score™ is 78/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For ReadyTech Holdings (ASX:RDY), the current EV-to-EBITDA is 7.96 as of Sep. 02, 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 ReadyTech Holdings (ASX:RDY) Overvalued in 2026?

Based on GuruFocus' analysis, ReadyTech Holdings stock appears to be undervalued. The current stock price of A$1.50 is trading 49.8% below its estimated GF Value™ of A$2.99. GuruFocus considers ReadyTech Holdings to be Possible Value Trap.

Key valuation signals for ASX:RDY:

  • EV-to-EBITDA: 7.96 (48% below median its 10-year median of 15.39)
  • GF Value™: A$2.99 vs. price of A$1.50 (49.8% below fair value)
  • GF Score™: 78/100 with 4 warning signs
  • Industry Position: 24.3% below the Software median (#727 of 1954)

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


ReadyTech Holdings Business Description

Address 77 King Street, Level 2, Sydney, NSW, AUS, 2000
ReadyTech Holdings Ltd is a provider of people management software for educators, employers, and facilitators of career transitions. Its products are JR Plus, A2E, HR3, ePayroll, JR Gov, Aussiepay, and others. The company's operating segments include Education and Work pathways, Workforce Solutions, and Government and Justice. It generates maximum revenue from the Government and Justice. The education segment mainly provides products and services to tertiary education providers. Its Workforce segment provides products and services to a mid-sized company across various industries. The Government division provides government and justice case management software as a service solution to local governments, state governments, and justice departments.
78GF Score

Get the complete analysis for ASX:RDY

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

A$1.50
Price
A$2.99
GF Value