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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Knorr-Bremse AG's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 29.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Knorr-Bremse AG's Degree of Operating Leverage or its related term are showing as below:
XSWX:KBX's Degree of Operating Leverage is ranked worse than 92.54% of 1300
companies
in the Vehicles & Parts industry
Industry Median: 0.92
vs XSWX:KBX: 29.85
Knorr-Bremse AG (XSWX:KBX) 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.
Knorr-Bremse AG Degree of Operating Leverage Related Terms
Knorr-Bremse AG Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Knorr-Bremse AG'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.
Knorr-Bremse AG Degree of Operating Leverage Chart
XSWX:KBX vs ORLY, AZO, GPC: Degree of Operating Leverage Comparison
For the Auto Parts subindustry, Knorr-Bremse AG'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.
Knorr-Bremse AG Degree of Operating Leverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Knorr-Bremse AG's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Knorr-Bremse AG'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 29.85 mean?
Knorr-Bremse AG (XSWX:KBX) has a Degree of Operating Leverage of 29.85 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 Knorr-Bremse AG and its competitors. According to the industry distribution chart, Knorr-Bremse AG ranks #1203 out of 1300 companies in the Vehicles & Parts industry, placing it in the top 92.5%.
Is Knorr-Bremse AG's Degree of Operating Leverage too high?
Knorr-Bremse AG's current Degree of Operating Leverage is 29.85. The Vehicles & Parts industry median Degree of Operating Leverage is 0.92. Knorr-Bremse AG's value of 29.85 is 3144.6% above this industry median. Based on the distribution chart, Knorr-Bremse AG ranks #1203 out of 1300 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Knorr-Bremse AG has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Knorr-Bremse AG's Degree of Operating Leverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Knorr-Bremse AG ranks #1203 out of 1300 companies for Degree of Operating Leverage. This places Knorr-Bremse AG in the lower half of its industry. The industry median Degree of Operating Leverage is 0.92. Knorr-Bremse AG's value of 29.85 is 3144.6% 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 a Vehicles & Parts company?
The median Degree of Operating Leverage among Vehicles & Parts companies is 0.92, based on 1,300 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. Knorr-Bremse AG's current Degree of Operating Leverage of 29.85 is 3144.6% 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 Knorr-Bremse AG and its competitors. For the Vehicles & Parts industry, the median Degree of Operating Leverage is 0.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knorr-Bremse AG's current Degree of Operating Leverage is 29.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knorr-Bremse AG stock overvalued right now?
Based on GuruFocus' analysis, Knorr-Bremse AG (XSWX:KBX) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF77.07, compared to a current price of CHF96.20 — trading 24.8% above its estimated fair value. The current Degree of Operating Leverage is 29.85 and 3144.6% above the Vehicles & Parts industry median of 0.92. Knorr-Bremse AG's overall GF Score™ is 85/100 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 Knorr-Bremse AG (XSWX:KBX), the current Degree of Operating Leverage is 29.85 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 Knorr-Bremse AG (XSWX:KBX) Overvalued in 2026?
Based on GuruFocus' analysis, Knorr-Bremse AG stock appears to be overvalued.
The current stock price of CHF96.20 is trading 24.8% above its estimated GF Value™ of CHF77.07.
GuruFocus considers Knorr-Bremse AG to be Significantly Overvalued.
Key valuation signals for XSWX:KBX:
Degree of Operating Leverage: 29.85
GF Value™: CHF77.07 vs. price of CHF96.20 (24.8% above fair value)
Industry Position: 3144.6% above the Vehicles & Parts median (#1203 of 1300)
No single metric tells the full story. See the XSWX:KBX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knorr-Bremse AG is engaged in the development, production, marketing, and servicing of Automotive parts. It operates its business activities in two divisions: Rail Vehicle Systems and Commercial Vehicle Systems. Its product portfolio comprises Braking, entrance, and HVAC systems; power electric and control technology; digital solutions; couplers; signal systems; pneumatic braking systems; energy supply and distribution systems; wiper and wash systems; and others. Maximum of revenue is from Rail Vehicle System. Its geographical segments are Europe/Africa, North America, South America, and Asia-Pacific. The majority of its revenue is from Europe/Africa.
85GF Score
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