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Palace CapitalCHIX:PCAL 61 Degree of Operating Leverage is 10.41 as of Mar. 2026. GuruFocus rates CHIX:PCAL with a GF Score™ of 61/100 and a GF Value™ of £1.56 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 700 REITs companies, Palace Capital ranks worse than 84% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Palace Capital's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 10.41. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Palace Capital's Degree of Operating Leverage or its related term are showing as below:
CHIX:PCAl's Degree of Operating Leverage is ranked worse than 84% of 700
companies
in the REITs industry
Industry Median: 1.26
vs CHIX:PCAl: 10.41
Palace Capital (CHIX:PCAl) 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.
Palace Capital Degree of Operating Leverage Related Terms
Palace Capital Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Palace Capital'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.
CHIX:PCAL vs VICI, WPC, BNL: Degree of Operating Leverage Comparison
For the REIT - Diversified subindustry, Palace Capital'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.
Palace Capital Degree of Operating Leverage vs REITs Industry
For the REITs industry and Real Estate sector, Palace Capital's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Palace Capital'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 10.41 mean?
Palace Capital (CHIX:PCAL) has a Degree of Operating Leverage of 10.41 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Palace Capital and its competitors. According to the industry distribution chart, Palace Capital ranks #588 out of 700 companies in the REITs industry, placing it in the top 84%.
Is Palace Capital's Degree of Operating Leverage too high?
Palace Capital's current Degree of Operating Leverage is 10.41. The REITs industry median Degree of Operating Leverage is 1.26. Palace Capital's value of 10.41 is 726.2% above this industry median. Based on the distribution chart, Palace Capital ranks #588 out of 700 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Palace Capital has a GF Score™ of 61/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palace Capital's Degree of Operating Leverage compare to VICI and WPC?
According to the REITs industry distribution chart, Palace Capital ranks #588 out of 700 companies for Degree of Operating Leverage. This places Palace Capital in the lower half of its industry. The industry median Degree of Operating Leverage is 1.26. Palace Capital's value of 10.41 is 726.2% 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 a REITs company?
The median Degree of Operating Leverage among REITs companies is 1.26, based on 700 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. Palace Capital's current Degree of Operating Leverage of 10.41 is 726.2% 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 Palace Capital and its competitors. For the REITs industry, the median Degree of Operating Leverage is 1.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palace Capital's current Degree of Operating Leverage is 10.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palace Capital stock overvalued right now?
Based on GuruFocus' analysis, Palace Capital (CHIX:PCAL) is currently considered Modestly Overvalued. The stock's GF Value™ is £1.56, compared to a current price of £1.85 — trading 18.6% above its estimated fair value. The current Degree of Operating Leverage is 10.41 and 726.2% above the REITs industry median of 1.26. Palace Capital's overall GF Score™ is 61/100 with 7 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 Palace Capital (CHIX:PCAL), the current Degree of Operating Leverage is 10.41 as of Mar. 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 Palace Capital (CHIX:PCAL) Overvalued in 2026?
Based on GuruFocus' analysis, Palace Capital stock appears to be overvalued.
The current stock price of £1.85 is trading 18.6% above its estimated GF Value™ of £1.56.
GuruFocus considers Palace Capital to be Modestly Overvalued.
Key valuation signals for CHIX:PCAL:
Degree of Operating Leverage: 10.41
GF Value™: £1.56 vs. price of £1.85 (18.6% above fair value)
Industry Position: 726.2% above the REITs median (#588 of 700)
No single metric tells the full story. See the CHIX:PCAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palace Capital PLC is a property investment company. The Company's principal activity is to invest in commercial real estate in the UK. Its portfolio includes investment properties throughout England, predominantly regional investments outside London, and a diverse portfolio of commercial buildings. The company generates revenue in the form of property income and represents the value of accrued charges under operating leases for rental of the Group's investment properties. Its only reportable segment is an Investment property. The company's properties include Hudson House, York; Fraser House, Staines, Milton Keynes, and Midsummer Boulevard.
61GF Score
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