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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Medibank Pvt's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 2.78. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Medibank Pvt's Degree of Operating Leverage or its related term are showing as below:
ASX:MPL's Degree of Operating Leverage is ranked worse than 70.96% of 365
companies
in the Insurance industry
Industry Median: 1.18
vs ASX:MPL: 2.78
Medibank Pvt (ASX:MPL) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Medibank Pvt Degree of Operating Leverage Related Terms
Medibank Pvt Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Medibank Pvt's Degree of Operating 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.
ASX:MPL vs FNF, AXS, FAF: Degree of Operating Leverage Comparison
For the Insurance - Specialty subindustry, Medibank Pvt's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating 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.
Medibank Pvt Degree of Operating Leverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Medibank Pvt's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Medibank Pvt's Degree of Operating 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 EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating 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 Operating Leverage of 2.78 mean?
Medibank Pvt (ASX:MPL) has a Degree of Operating Leverage of 2.78 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Medibank Pvt and its competitors. According to the industry distribution chart, Medibank Pvt ranks #259 out of 365 companies in the Insurance industry, placing it in the top 71%.
Is Medibank Pvt's Degree of Operating Leverage too high?
Medibank Pvt's current Degree of Operating Leverage is 2.78. The Insurance industry median Degree of Operating Leverage is 1.18. Medibank Pvt's value of 2.78 is 135.6% above this industry median. Based on the distribution chart, Medibank Pvt ranks #259 out of 365 companies in the Insurance industry, which is below the industry midpoint. Overall, Medibank Pvt has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Medibank Pvt's Degree of Operating Leverage compare to FNF and AXS?
According to the Insurance industry distribution chart, Medibank Pvt ranks #259 out of 365 companies for Degree of Operating Leverage. This places Medibank Pvt in the lower half of its industry. The industry median Degree of Operating Leverage is 1.18. Medibank Pvt's value of 2.78 is 135.6% above 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 Operating Leverage for an Insurance company?
The median Degree of Operating Leverage among Insurance companies is 1.18, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Medibank Pvt's current Degree of Operating Leverage of 2.78 is 135.6% above 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 Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Medibank Pvt and its competitors. For the Insurance industry, the median Degree of Operating Leverage is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Medibank Pvt's current Degree of Operating Leverage is 2.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Medibank Pvt stock overvalued right now?
Based on GuruFocus' analysis, Medibank Pvt (ASX:MPL) is currently considered Fairly Valued. The stock's GF Value™ is A$4.72, compared to a current price of A$4.95 — trading 4.9% above its estimated fair value. The current Degree of Operating Leverage is 2.78 and 135.6% above the Insurance industry median of 1.18. Medibank Pvt's overall GF Score™ is 81/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Medibank Pvt (ASX:MPL), the current Degree of Operating Leverage is 2.78 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 Medibank Pvt (ASX:MPL) Overvalued in 2026?
Based on GuruFocus' analysis, Medibank Pvt stock appears to be overvalued.
The current stock price of A$4.95 is trading 4.9% above its estimated GF Value™ of A$4.72.
GuruFocus considers Medibank Pvt to be Fairly Valued.
Key valuation signals for ASX:MPL:
Degree of Operating Leverage: 2.78
GF Value™: A$4.72 vs. price of A$4.95 (4.9% above fair value)
Industry Position: 135.6% above the Insurance median (#259 of 365)
No single metric tells the full story. See the ASX:MPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Previously owned by the Australian government, Medibank is the largest health insurer in Australia. Its two brands, Medibank Private and Ahm, cover around 5 million people. Medibank and Australia's fourth-largest health fund, NIB Holdings, are the only listed health insurers. In addition to private health insurance, the firm provides life, pet, and travel insurance, as well as health insurance for overseas students and temporary overseas workers. The Medibank Health division provides healthcare services to businesses, governments, and communities across Australia and New Zealand.
81GF Score
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