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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Alliance Global Group's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 0.74. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Alliance Global Group's Degree of Operating Leverage or its related term are showing as below:
PHS:AGI's Degree of Operating Leverage is ranked better than 55.45% of 523
companies
in the Conglomerates industry
Industry Median: 1.06
vs PHS:AGI: 0.74
Alliance Global Group (PHS:AGI) 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.
Alliance Global Group Degree of Operating Leverage Related Terms
Alliance Global Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Alliance Global Group'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.
Alliance Global Group Degree of Operating Leverage Chart
PHS:AGI vs MMM, HON: Degree of Operating Leverage Comparison
For the Conglomerates subindustry, Alliance Global Group'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.
Alliance Global Group Degree of Operating Leverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Alliance Global Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Alliance Global Group'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 0.74 mean?
Alliance Global Group (PHS:AGI) has a Degree of Operating Leverage of 0.74 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 Alliance Global Group and its competitors. According to the industry distribution chart, Alliance Global Group ranks #233 out of 523 companies in the Conglomerates industry, placing it in the top 44.6%.
Is Alliance Global Group's Degree of Operating Leverage too high?
Alliance Global Group's current Degree of Operating Leverage is 0.74. The Conglomerates industry median Degree of Operating Leverage is 1.06. Alliance Global Group's value of 0.74 is 30.2% below this industry median. Based on the distribution chart, Alliance Global Group ranks #233 out of 523 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Alliance Global Group has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Alliance Global Group's Degree of Operating Leverage compare to MMM and HON?
According to the Conglomerates industry distribution chart, Alliance Global Group ranks #233 out of 523 companies for Degree of Operating Leverage. This puts Alliance Global Group in the upper half of its industry. The industry median Degree of Operating Leverage is 1.06. Alliance Global Group's value of 0.74 is 30.2% 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 Operating Leverage for a Conglomerates company?
The median Degree of Operating Leverage among Conglomerates companies is 1.06, based on 523 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. Alliance Global Group's current Degree of Operating Leverage of 0.74 is 30.2% 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 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 Alliance Global Group and its competitors. For the Conglomerates industry, the median Degree of Operating Leverage is 1.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alliance Global Group's current Degree of Operating Leverage is 0.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alliance Global Group stock overvalued right now?
Based on GuruFocus' analysis, Alliance Global Group (PHS:AGI) is currently considered Fairly Valued. The stock's GF Value™ is ₱8.54, compared to a current price of ₱8.90 — trading 4.2% above its estimated fair value. The current Degree of Operating Leverage is 0.74 and 30.2% below the Conglomerates industry median of 1.06. Alliance Global Group's overall GF Score™ is 74/100 with 5 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 Alliance Global Group (PHS:AGI), the current Degree of Operating Leverage is 0.74 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 Alliance Global Group (PHS:AGI) Overvalued in 2026?
Based on GuruFocus' analysis, Alliance Global Group stock appears to be overvalued.
The current stock price of ₱8.90 is trading 4.2% above its estimated GF Value™ of ₱8.54.
GuruFocus considers Alliance Global Group to be Fairly Valued.
Key valuation signals for PHS:AGI:
Degree of Operating Leverage: 0.74
GF Value™: ₱8.54 vs. price of ₱8.90 (4.2% above fair value)
Industry Position: 30.2% below the Conglomerates median (#233 of 523)
No single metric tells the full story. See the PHS:AGI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alliance Global Group Inc operate businesses in real estate property development, tourism-entertainment and gaming, food and beverage, and quick-service restaurants. It has four business segments: Megaworld; Emperador refers to the manufacture and distribution of distilled spirits; Travellers relates to tourism-oriented business that integrates entertainment, hospitality and leisure; and GADC refers to operations of McDonald's restaurants in the Philippines. The company generates majority of revenue from Megaworld segment consists of development of real estate, integrated resorts, leasing of properties and hotel operations business, which is mainly undertaken by Megaworld and subsidiaries, the Group's forerunner in the real estate industry.
74GF Score
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