Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. BAE Systems's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was £480 Mil. BAE Systems's average total debt for the quarter that ended in Dec. 2025 was £9,240 Mil. Therefore, BAE Systems's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 5.20%.
BAE Systems (CHIX:BAl) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
BAE Systems Effective Interest Rate on Debt % Related Terms
BAE Systems Effective Interest Rate on Debt % Historical Data
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The historical data trend for BAE Systems's Effective Interest Rate on Debt % 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.
BAE Systems Effective Interest Rate on Debt % Chart
CHIX:BAL vs SPCX, GE, RTX: Effective Interest Rate on Debt % Comparison
For the Aerospace & Defense subindustry, BAE Systems's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.
BAE Systems Effective Interest Rate on Debt % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, BAE Systems's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where BAE Systems's Effective Interest Rate on Debt % 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.
In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data,
the Interest Expense data used here is two times the semi-annual (Dec. 2025) interest expense data.
Effective Interest Rate on Debt % is displayed in the 30-year financial page.
What does a Effective Interest Rate on Debt % of 5.20% mean?
BAE Systems (CHIX:BAL) has a Effective Interest Rate on Debt % of 5.20% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on BAE Systems and its competitors.
Is BAE Systems' Effective Interest Rate on Debt % too high?
BAE Systems' current Effective Interest Rate on Debt % is 5.20%. Overall, BAE Systems has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does BAE Systems' Effective Interest Rate on Debt % compare to SPCX and GE?
BAE Systems' Effective Interest Rate on Debt % of 5.20% can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Aerospace & Defense company?
A good Effective Interest Rate on Debt % depends on the Aerospace & Defense industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on BAE Systems and its competitors. BAE Systems's current Effective Interest Rate on Debt % is 5.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BAE Systems stock overvalued right now?
Based on GuruFocus' analysis, BAE Systems (CHIX:BAL) is currently considered Fairly Valued. The stock's GF Value™ is £16.90, compared to a current price of £18.52 — trading 9.6% above its estimated fair value. The current Effective Interest Rate on Debt % is 5.20%. BAE Systems' overall GF Score™ is 81/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For BAE Systems (CHIX:BAL), the current Effective Interest Rate on Debt % is 5.20% as of Dec. 2025. 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 BAE Systems (CHIX:BAL) Overvalued in 2026?
Based on GuruFocus' analysis, BAE Systems stock appears to be overvalued.
The current stock price of £18.52 is trading 9.6% above its estimated GF Value™ of £16.90.
GuruFocus considers BAE Systems to be Fairly Valued.
Key valuation signals for CHIX:BAL:
Effective Interest Rate on Debt %: 5.20%
GF Value™: £16.90 vs. price of £18.52 (9.6% above fair value)
No single metric tells the full story. See the CHIX:BAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's US- and UK-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the US government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the US Defense Department; the air segment includes BAE's share of US and European air programs as well as its businesses in Saudi Arabia and Australia, and the maritime segment comprises UK land- and marine-based activities.
81GF Score
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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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