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AyalaPHS:AC -0.10%88 Degree of Operating Leverage is 12.58 as of Mar. 2026. GuruFocus rates PHS:AC with a GF Score™ of 88/100 and a GF Value™ of ₱678.72 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 539 Conglomerates companies, Ayala ranks worse than 88.87% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Ayala's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 12.58. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Ayala's Degree of Operating Leverage or its related term are showing as below:
PHS:AC's Degree of Operating Leverage is ranked worse than 88.87% of 539
companies
in the Conglomerates industry
Industry Median: 0.98
vs PHS:AC: 12.58
Ayala (PHS:AC) 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.
Ayala Degree of Operating Leverage Related Terms
Ayala Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Ayala'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.
PHS:AC vs MMM, HON: Degree of Operating Leverage Comparison
For the Conglomerates subindustry, Ayala'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.
Ayala Degree of Operating Leverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Ayala's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Ayala'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 12.58 mean?
Ayala (PHS:AC) has a Degree of Operating Leverage of 12.58 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 Ayala and its competitors. According to the industry distribution chart, Ayala ranks #479 out of 539 companies in the Conglomerates industry, placing it in the top 88.9%.
Is Ayala's Degree of Operating Leverage too high?
Ayala's current Degree of Operating Leverage is 12.58. The Conglomerates industry median Degree of Operating Leverage is 0.98. Ayala's value of 12.58 is 1183.7% above this industry median. Based on the distribution chart, Ayala ranks #479 out of 539 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Ayala has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ayala's Degree of Operating Leverage compare to MMM and HON?
According to the Conglomerates industry distribution chart, Ayala ranks #479 out of 539 companies for Degree of Operating Leverage. This places Ayala in the lower half of its industry. The industry median Degree of Operating Leverage is 0.98. Ayala's value of 12.58 is 1183.7% 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 Conglomerates company?
The median Degree of Operating Leverage among Conglomerates companies is 0.98, based on 539 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. Ayala's current Degree of Operating Leverage of 12.58 is 1183.7% 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 Ayala and its competitors. For the Conglomerates industry, the median Degree of Operating Leverage is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ayala's current Degree of Operating Leverage is 12.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ayala stock overvalued right now?
Based on GuruFocus' analysis, Ayala (PHS:AC) is currently considered Modestly Undervalued. The stock's GF Value™ is ₱678.72, compared to a current price of ₱511.50 — trading 24.6% below its estimated fair value. The current Degree of Operating Leverage is 12.58 and 1183.7% above the Conglomerates industry median of 0.98. Ayala's overall GF Score™ is 88/100 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 Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Ayala (PHS:AC), the current Degree of Operating Leverage is 12.58 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 Ayala (PHS:AC) Overvalued in 2026?
Based on GuruFocus' analysis, Ayala stock appears to be undervalued.
The current stock price of ₱511.50 is trading 24.6% below its estimated GF Value™ of ₱678.72.
GuruFocus considers Ayala to be Modestly Undervalued.
Key valuation signals for PHS:AC:
Degree of Operating Leverage: 12.58
GF Value™: ₱678.72 vs. price of ₱511.50 (24.6% below fair value)
Industry Position: 1183.7% above the Conglomerates median (#479 of 539)
No single metric tells the full story. See the PHS:AC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ayala Corporation is a general real estate company. The group is organized into a variety of business units. Ayala's real estate business is predominantly conducted through its subsidiary, Ayala Land, Inc. Its involvement in financial services is through an affiliate, the Bank of the Philippine Islands. The group's business has the following main segments: Parent Company; Real estate and hotels; Financial services and insurance; Telecommunications; Industrial Technologies; Power Generation; and Automotive and Others. It derives maximum revenue from Real Estate and hotels segment. The group geographically, operates in Philippines, Europe, Asia, and USA, of which it derives maximum revenue from Philippines.
88GF Score
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Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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