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Applied DigitalAPLD +6.04%48 Equity-to-Asset is 0.17 as of May. 2026, which is 15% below its 10-year median of 0.20. GuruFocus rates APLD with a GF Score™ of 48/100 and a GF Value™ of $20.42 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,892 Software companies, Applied Digital ranks worse than 85.79% on this metric.
Equity to Asset ratio is calculated as total stockholders equity divided by total asset. Applied Digital's Total Stockholders Equity for the quarter that ended in May. 2026 was $1,717.5 Mil. Applied Digital's Total Assets for the quarter that ended in May. 2026 was $9,929.3 Mil.
Therefore, Applied Digital's Equity to Asset Ratio for the quarter that ended in May. 2026 was 0.17.
The historical rank and industry rank for Applied Digital's Equity-to-Asset or its related term are showing as below:
APLD'
s Equity-to-Asset Range Over the Past 10 Years
Min: -0.17 Med: 0.2 Max: 0.6
Current: 0.17
During the past 13 years, the highest Equity to Asset Ratio of Applied Digital was 0.60. The lowest was -0.17. And the median was 0.20.
APLD's Equity-to-Asset is ranked worse than 85.79% of 2892
companies
in the Software industry
Industry Median: 0.56
vs APLD: 0.17
Applied Digital (NAS:APLD) Equity-to-Asset Explanation
Equity to Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity to Asset ratio (more leveraged) may have higher ROE % because of the leverage.
For banks, the required minimum Equity to Asset ratio by regulation is 5%. Some stronger banks may have Equity to Asset Ratio of more than 10%.
Applied Digital Equity-to-Asset Related Terms
Applied Digital Equity-to-Asset Historical Data
* Premium members only.
The historical data trend for Applied Digital's Equity-to-Asset 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.
APLD vs INGM, GDS, PSN: Equity-to-Asset Comparison
For the Information Technology Services subindustry, Applied Digital's Equity-to-Asset, along with its competitors' market caps and Equity-to-Asset 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.
Applied Digital Equity-to-Asset vs Software Industry
For the Software industry and Technology sector, Applied Digital's Equity-to-Asset distribution charts can be found below:
* The bar in red indicates where Applied Digital's Equity-to-Asset falls into.
Equity to Asset ratio measures the ratios of the portion of the asset owned by shareholders out of the total asset. It indicates the leverage of the company, and the amount of debt the company uses in its operation.
Equity to Asset ratio is calculated by dividing total stockholders equity by total asset.
Applied Digital's Equity to Asset Ratio for the fiscal year that ended in May. 2026 is calculated as
* 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.
Applied Digital (APLD) has a Equity-to-Asset of 0.17 as of May. 2026. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Applied Digital and its competitors. This is 15% below median its historical median of 0.20. According to the industry distribution chart, Applied Digital ranks #2481 out of 2892 companies in the Software industry, placing it in the top 85.8%.
Is Applied Digital's Equity-to-Asset too high?
Applied Digital's current Equity-to-Asset of 0.17 is 15% below median its 10-year median of 0.20. The Software industry median Equity-to-Asset is 0.56. Applied Digital's value of 0.17 is 69.6% below this industry median. Based on the distribution chart, Applied Digital ranks #2481 out of 2892 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Applied Digital has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Digital's Equity-to-Asset compare to INGM and GDS?
According to the Software industry distribution chart, Applied Digital ranks #2481 out of 2892 companies for Equity-to-Asset. This places Applied Digital in the lower half of its industry. The industry median Equity-to-Asset is 0.56. Applied Digital's value of 0.17 is 69.6% below this benchmark. While the company's 10-year median is 0.20 vs. the industry median of 0.56, Applied Digital 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 Equity-to-Asset for a Software company?
The median Equity-to-Asset among Software companies is 0.56, based on 2,892 companies in the industry. Companies in the top quartile (top 25%) have a Equity-to-Asset significantly above this median, while those in the bottom quartile fall well below. However, Equity-to-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Digital's current Equity-to-Asset of 0.17 is 69.6% 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 Equity-to-Asset mean?
A high Equity-to-Asset can signal that a stock is expensive relative to its fundamentals. Equity-to-asset ratio equals total company equity divided by total assets. It measures financial leverage. View historical data on Applied Digital and its competitors. For the Software industry, the median Equity-to-Asset is 0.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Digital's current Equity-to-Asset is 0.17, which is 15% below median its own 10-year median of 0.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Digital stock overvalued right now?
Based on GuruFocus' analysis, Applied Digital (APLD) is currently considered Significantly Overvalued. The stock's GF Value™ is $20.42, compared to a current price of $31.27 — trading 53.1% above its estimated fair value. The current Equity-to-Asset is 0.17, which is 15% below median its 10-year median of 0.20 and 69.6% below the Software industry median of 0.56. Applied Digital's overall GF Score™ is 48/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Equity-to-Asset calculated?
Equity-to-Asset is calculated from a company's financial statements. For Applied Digital (APLD), the current Equity-to-Asset is 0.17 as of May. 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 Applied Digital (APLD) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Digital stock appears to be overvalued.
The current stock price of $31.27 is trading 53.1% above its estimated GF Value™ of $20.42.
GuruFocus considers Applied Digital to be Significantly Overvalued.
Key valuation signals for APLD:
Equity-to-Asset: 0.17 (15% below median its 10-year median of 0.20)
GF Value™: $20.42 vs. price of $31.27 (53.1% above fair value)
Industry Position: 69.6% below the Software median (#2481 of 2892)
No single metric tells the full story. See the APLD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments: Data Center Hosting Business and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business, which operates data centers to provide energized space to crypto mining customers.
48GF Score
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