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Highest Debt to EBITDA Ratio in the Internet Software & Services Industry Detected in Shares of QuinStreet (QNST, SINA, WBMD, SFUN, INAP)

By Amy Schwartz

Below are the three companies in the Internet Software & Services industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

QuinStreet ranks highest with a a debt to EBITDA ratio of 107.5. Following is Sina with a a debt to EBITDA ratio of 31.9. WebMD Health ranks third highest with a a debt to EBITDA ratio of 5.7.

SAIFUN SEMICONDUCTOR follows with a a debt to EBITDA ratio of 5.7, and Internap Network Services rounds out the top five with a a debt to EBITDA ratio of 5.5.

SmarTrend recommended that its subscribers protect gains by selling shares of Internap Network Services on September 15th, 2016 by issuing a Downtrend alert when the shares were trading at $1.81. Since that call, shares of Internap Network Services have fallen 8.8%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest debt to ebitda ratio amex:qnst quinstreet webmd health saifun semiconductor internap network services

Ticker(s): SINA WBMD SFUN INAP