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.
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.
Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
China Tobacco International (HK) Co's Degree of Financial Leverage for the quarter that ended in Jun. 2026 was -0.17. The higher Degree of Financial Leverage, the more volatile earnings will be.
CTOBF's Degree of Financial Leverage is ranked better than 86.05% of 43
companies
in the Tobacco Products industry
Industry Median: 1.07
vs CTOBF: -0.17
China Tobacco International (HK) Co (OTCPK:CTOBF) 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.
China Tobacco International (HK) Co Degree of Financial Leverage Related Terms
China Tobacco International (HK) Co Degree of Financial Leverage Historical Data
* 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.
China Tobacco International (HK) Co Degree of Financial Leverage Chart
CTOBF vs PM, MO, TPB: Degree of Financial Leverage Comparison
For the Tobacco subindustry, China Tobacco International (HK) Co'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.
China Tobacco International (HK) Co Degree of Financial Leverage vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, China Tobacco International (HK) Co's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where China Tobacco International (HK) Co'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 -0.17 mean?
China Tobacco International (HK) Co (CTOBF) has a Degree of Financial Leverage of -0.17 as of Jun. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for China Tobacco International (HK) Co and its competitors. According to the industry distribution chart, China Tobacco International (HK) Co ranks #6 out of 43 companies in the Tobacco Products industry, placing it in the top 14%.
Is China Tobacco International (HK) Co's Degree of Financial Leverage too high?
China Tobacco International (HK) Co's current Degree of Financial Leverage is -0.17. Based on the distribution chart, China Tobacco International (HK) Co ranks #6 out of 43 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, China Tobacco International (HK) Co has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does China Tobacco International (HK) Co's Degree of Financial Leverage compare to PM and MO?
According to the Tobacco Products industry distribution chart, China Tobacco International (HK) Co ranks #6 out of 43 companies for Degree of Financial Leverage. This places China Tobacco International (HK) Co in the top 14% of its industry — outperforming the majority of peers. The industry median Degree of Financial Leverage is 1.07. 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 Tobacco Products company?
The median Degree of Financial Leverage among Tobacco Products companies is 1.07, based on 43 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. 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 China Tobacco International (HK) Co and its competitors. For the Tobacco Products industry, the median Degree of Financial Leverage is 1.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Tobacco International (HK) Co's current Degree of Financial Leverage is -0.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Tobacco International (HK) Co stock overvalued right now?
China Tobacco International (HK) Co (CTOBF) has a current Degree of Financial Leverage of -0.17. The stock's GF Value™ is $1.93, compared to a current price of $2.05 — trading 6.2% above its estimated fair value. The current Degree of Financial Leverage is -0.17. China Tobacco International (HK) Co's overall GF Score™ is 88/100 with 2 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 China Tobacco International (HK) Co (CTOBF), the current Degree of Financial Leverage is -0.17 as of Jun. 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 China Tobacco International (HK) Co (CTOBF) Overvalued in 2026?
Based on GuruFocus' analysis, China Tobacco International (HK) Co stock appears to be overvalued.
The current stock price of $2.05 is trading 6.2% above its estimated GF Value™ of $1.93.
Key valuation signals for CTOBF:
Degree of Financial Leverage: -0.17
GF Value™: $1.93 vs. price of $2.05 (6.2% above fair value)
No single metric tells the full story. See the CTOBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Tobacco International (HK) Co Ltd is engaged in the tobacco business. It operates through various segments namely the Tobacco Leaf Products Export Business, the Tobacco Leaf Product Import Business, the Cigarettes Export Business, the New Tobacco Product Export Business, and the Brazil Operation Business. The company's geographical segments are China (excluding the SARs), Indonesia, Korea, Hong Kong, Philippines, Vietnam, Brazil, Belgium, Poland, Paraguay, Egypt, and others, of which it derives maximum revenue from the PRC. It earns maximum revenue from the Tobacco Leaf Product Import Business.
88GF Score
Get the complete analysis for CTOBF
Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CTOBF has been successfully added to your 
