Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Tabcorp Holdings's Degree of Financial Leverage for the quarter that ended in Dec. 2025 was 0.84. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Tabcorp Holdings's Degree of Financial Leverage or its related term are showing as below:
ASX:TAH's Degree of Financial Leverage is ranked better than 62.12% of 829
companies
in the Travel & Leisure industry
Industry Median: 1.02
vs ASX:TAH: 0.84
Tabcorp Holdings (ASX:TAH) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Tabcorp Holdings Degree of Financial Leverage Related Terms
Tabcorp Holdings Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Tabcorp Holdings's Degree of Financial Leverage 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.
Tabcorp Holdings Degree of Financial Leverage Chart
ASX:TAH vs FLUT, DKNG, LNWO: Degree of Financial Leverage Comparison
For the Gambling subindustry, Tabcorp Holdings's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage 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.
Tabcorp Holdings Degree of Financial Leverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Tabcorp Holdings's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Tabcorp Holdings's Degree of Financial Leverage falls into.
* 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.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of 0.84 mean?
Tabcorp Holdings (ASX:TAH) has a Degree of Financial Leverage of 0.84 as of Dec. 2025. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Tabcorp Holdings and its competitors. According to the industry distribution chart, Tabcorp Holdings ranks #314 out of 829 companies in the Travel & Leisure industry, placing it in the top 37.9%.
Is Tabcorp Holdings' Degree of Financial Leverage too high?
Tabcorp Holdings' current Degree of Financial Leverage is 0.84. The Travel & Leisure industry median Degree of Financial Leverage is 1.02. Tabcorp Holdings' value of 0.84 is 17.6% below this industry median. Based on the distribution chart, Tabcorp Holdings ranks #314 out of 829 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Tabcorp Holdings has a GF Score™ of 50/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Tabcorp Holdings' Degree of Financial Leverage compare to FLUT and DKNG?
According to the Travel & Leisure industry distribution chart, Tabcorp Holdings ranks #314 out of 829 companies for Degree of Financial Leverage. This puts Tabcorp Holdings in the upper half of its industry. The industry median Degree of Financial Leverage is 1.02. Tabcorp Holdings' value of 0.84 is 17.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Travel & Leisure company?
The median Degree of Financial Leverage among Travel & Leisure companies is 1.02, based on 829 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tabcorp Holdings's current Degree of Financial Leverage of 0.84 is 17.6% 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 Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Tabcorp Holdings and its competitors. For the Travel & Leisure industry, the median Degree of Financial Leverage is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tabcorp Holdings's current Degree of Financial Leverage is 0.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tabcorp Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tabcorp Holdings (ASX:TAH) is currently considered Fairly Valued. The stock's GF Value™ is A$0.81, compared to a current price of A$0.83 — trading 1.9% above its estimated fair value. The current Degree of Financial Leverage is 0.84 and 17.6% below the Travel & Leisure industry median of 1.02. Tabcorp Holdings' overall GF Score™ is 50/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Tabcorp Holdings (ASX:TAH), the current Degree of Financial Leverage is 0.84 as of Dec. 2025. 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 Tabcorp Holdings (ASX:TAH) Overvalued in 2026?
Based on GuruFocus' analysis, Tabcorp Holdings stock appears to be overvalued.
The current stock price of A$0.83 is trading 1.9% above its estimated GF Value™ of A$0.81.
GuruFocus considers Tabcorp Holdings to be Fairly Valued.
Key valuation signals for ASX:TAH:
Degree of Financial Leverage: 0.84
GF Value™: A$0.81 vs. price of A$0.83 (1.9% above fair value)
Industry Position: 17.6% below the Travel & Leisure median (#314 of 829)
No single metric tells the full story. See the ASX:TAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tabcorp is essentially a pure-play Australian wagering operator, with exclusive rights to physical wagering at venues (pubs, clubs, and racecourses) and also a digital offering. Tabcorp operates through principally through two segments: wagering and media and gaming services. The firm conducts wagering activities under the TAB brand both online and physically in every Australian state and territory other than Western Australia, reaching 90% of the population through a network of retail venues. In addition, Integrity Services provides services to electronic gaming machine venues.
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