ALA SpA (FRA:8WD) Effective Interest Rate on Debt %: 8.49% (As of Jun. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FRA:8WD ALA SpA FRA:8WD
66 GF Score
Price €36.00
GF Value €30.35
! 6 Warning Signs
View Full Analysis

What is ALA SpA Effective Interest Rate on Debt %?

ALA SpA FRA:8WD 66 Effective Interest Rate on Debt % is 8.49% as of Jun. 2025. GuruFocus rates FRA:8WD with a GF Score™ of 66/100 and a GF Value™ of €30.35. The stock has 6 warning signs investors should review.

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. ALA SpA's annualized positive value of Interest Expense for the quarter that ended in Jun. 2025 was €6.9 Mil. ALA SpA's average total debt for the quarter that ended in Jun. 2025 was €81.7 Mil. Therefore, ALA SpA's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2025 was 8.49%.


ALA SpA  (FRA:8WD) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


ALA SpA Effective Interest Rate on Debt % Related Terms


ALA SpA Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for ALA SpA'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.

ALA SpA Effective Interest Rate on Debt % Chart

ALA SpA Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Effective Interest Rate on Debt %
Get a 7-Day Free Trial 6.80 6.54 6.41 10.52 10.35

ALA SpA Semi-Annual Data
Dec18 Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.13 12.85 11.33 9.81 8.49

FRA:8WD vs GWW, FAST, FERG: Effective Interest Rate on Debt % Comparison

For the Industrial Distribution subindustry, ALA SpA'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.


ALA SpA Effective Interest Rate on Debt % vs Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, ALA SpA's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where ALA SpA's Effective Interest Rate on Debt % falls into.


FRA:8WD
66GF Score
ALA SpA FRA:8WD
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ALA SpA Effective Interest Rate on Debt % Calculation

ALA SpA's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2024 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2023 )+Total Debt  (A: Dec. 2024 ))/ count )
=-1  *  -7.366/( (63.425+78.861)/ 2 )
=-1  *  -7.366/71.143
=10.35 %

where

Total Debt  (A: Dec. 2023 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=42.665 + 20.76
=63.425

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=45.029 + 33.832
=78.861

ALA SpA's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2024 )+Total Debt  (Q: Jun. 2025 ))/ count )
=-1  *  -6.934/( (78.861+84.474)/ 2 )
=-1  *  -6.934/81.6675
=8.49 %

where

Total Debt  (Q: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=45.029 + 33.832
=78.861

Total Debt  (Q: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=48.552 + 35.922
=84.474

* 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 (Jun. 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 8.49% mean?
ALA SpA (FRA:8WD) has a Effective Interest Rate on Debt % of 8.49% as of Jun. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on ALA SpA and its competitors.
Is ALA SpA's Effective Interest Rate on Debt % too high?
ALA SpA's current Effective Interest Rate on Debt % is 8.49%. Overall, ALA SpA has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does ALA SpA's Effective Interest Rate on Debt % compare to GWW and FAST?
ALA SpA's Effective Interest Rate on Debt % of 8.49% can be compared against companies in the Industrial Distribution 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 Industrial Distribution company?
A good Effective Interest Rate on Debt % depends on the Industrial Distribution 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 ALA SpA and its competitors. ALA SpA's current Effective Interest Rate on Debt % is 8.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALA SpA stock overvalued right now?
ALA SpA (FRA:8WD) has a current Effective Interest Rate on Debt % of 8.49%. The stock's GF Value™ is €30.35, compared to a current price of €36.00 — trading 18.6% above its estimated fair value. The current Effective Interest Rate on Debt % is 8.49%. ALA SpA's overall GF Score™ is 66/100 with 6 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 ALA SpA (FRA:8WD), the current Effective Interest Rate on Debt % is 8.49% as of Jun. 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 ALA SpA (FRA:8WD) Overvalued in 2026?

Based on GuruFocus' analysis, ALA SpA stock appears to be overvalued. The current stock price of €36.00 is trading 18.6% above its estimated GF Value™ of €30.35.

Key valuation signals for FRA:8WD:

  • Effective Interest Rate on Debt %: 8.49%
  • GF Value™: €30.35 vs. price of €36.00 (18.6% above fair value)
  • GF Score™: 66/100 with 6 warning signs

No single metric tells the full story. See the FRA:8WD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


ALA SpA Business Description

Address 54 Viale JF Kennedy, Mostra d'Oltremare, Naples, ITA, 80125
ALA SpA is a distributor and supply chain solutions provider to the industrial markets. It is involved in the distribution of components and equipment for use in the civil and military aeronautical sectors. The company also offers integrated logistics services for the rail, energy, and marine sectors. Its various product offerings include power systems, oxygen systems, gate valves, protection valves, fasteners, regulators, and others. Geographically, the company derives maximum revenue from its business in Italy and the rest from other parts of the European Union and other regions.
66GF Score

Get the complete analysis for FRA:8WD

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€36.00
Price
€30.35
GF Value