ALLETE (FRA:AEBA) Effective Interest Rate on Debt %: 4.80% (As of Sep. 2025)

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FRA:AEBA ALLETE Inc FRA:AEBA
26 GF Score
Price €57.50
GF Value €51.55
! 11 Warning Signs
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What is ALLETE Effective Interest Rate on Debt %?

ALLETE FRA:AEBA 26 Effective Interest Rate on Debt % is 4.80% as of Sep. 2025. GuruFocus rates FRA:AEBA with a GF Score™ of 26/100 and a GF Value™ of €51.55. The stock has 11 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. ALLETE's annualized positive value of Interest Expense for the quarter that ended in Sep. 2025 was €87 Mil. ALLETE's average total debt for the quarter that ended in Sep. 2025 was €1,818 Mil. Therefore, ALLETE's annualized Effective Interest Rate on Debt % for the quarter that ended in Sep. 2025 was 4.80%.


ALLETE  (FRA:AEBA) Effective Interest Rate on Debt % Explanation

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


ALLETE Effective Interest Rate on Debt % Related Terms


ALLETE Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for ALLETE'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.

ALLETE Effective Interest Rate on Debt % Chart

ALLETE Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.63 3.75 3.97 4.29 4.64

ALLETE Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.44 4.78 4.52 4.56 4.80

FRA:AEBA vs SRE, AES: Effective Interest Rate on Debt % Comparison

For the Utilities - Diversified subindustry, ALLETE'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.


ALLETE Effective Interest Rate on Debt % vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, ALLETE's Effective Interest Rate on Debt % distribution charts can be found below:

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


FRA:AEBA
26GF Score
ALLETE Inc FRA:AEBA
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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ALLETE Effective Interest Rate on Debt % Calculation

ALLETE'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  *  -78.024/( (1642.622+1718.428)/ 2 )
=-1  *  -78.024/1680.525
=4.64 %

where

Total Debt  (A: Dec. 2023 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1540.468 + 102.154
=1642.622

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1627.989 + 90.439
=1718.428

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

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jun. 2025 )+Total Debt  (Q: Sep. 2025 ))/ count )
=-1  *  -87.244/( (1730.012+1905.924)/ 2 )
=-1  *  -87.244/1817.968
=4.80 %

where

Total Debt  (Q: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1674.871 + 55.141
=1730.012

Total Debt  (Q: Sep. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1788.263 + 117.661
=1905.924

* 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 four times the quarterly (Sep. 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 4.80% mean?
ALLETE (FRA:AEBA) has a Effective Interest Rate on Debt % of 4.80% as of Sep. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on ALLETE and its competitors.
Is ALLETE's Effective Interest Rate on Debt % too high?
ALLETE's current Effective Interest Rate on Debt % is 4.80%. Overall, ALLETE has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does ALLETE's Effective Interest Rate on Debt % compare to SRE and AES?
ALLETE's Effective Interest Rate on Debt % of 4.80% can be compared against companies in the Utilities - Regulated 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 Utilities - Regulated company?
A good Effective Interest Rate on Debt % depends on the Utilities - Regulated 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 ALLETE and its competitors. ALLETE's current Effective Interest Rate on Debt % is 4.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALLETE stock overvalued right now?
ALLETE (FRA:AEBA) has a current Effective Interest Rate on Debt % of 4.80%. The stock's GF Value™ is €51.55, compared to a current price of €57.50 — trading 11.5% above its estimated fair value. The current Effective Interest Rate on Debt % is 4.80%. ALLETE's overall GF Score™ is 26/100 with 11 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 ALLETE (FRA:AEBA), the current Effective Interest Rate on Debt % is 4.80% as of Sep. 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 ALLETE (FRA:AEBA) Overvalued in 2026?

Based on GuruFocus' analysis, ALLETE stock appears to be overvalued. The current stock price of €57.50 is trading 11.5% above its estimated GF Value™ of €51.55.

Key valuation signals for FRA:AEBA:

  • Effective Interest Rate on Debt %: 4.80%
  • GF Value™: €51.55 vs. price of €57.50 (11.5% above fair value)
  • GF Score™: 26/100 with 11 warning signs

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


ALLETE Business Description

Address 30 West Superior Street, Duluth, MN, USA, 55802-2093
ALLETE Inc provides competitively-priced energy in America's Upper Midwest region and invests in transmission infrastructure and other energy-centric businesses. The company has two reportable segments. The first segment is Regulated Operations, which includes the company's regulated utilities, Minnesota Power and SWL&P, as well as its investment in ATC. ATC is a regulated utility based in Wisconsin that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota, and Illinois. The second segment is ALLETE Clean Energy, which focuses on developing, acquiring, and operating clean and renewable energy projects.
26GF Score

Get the complete analysis for FRA:AEBA

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

€57.50
Price
€51.55
GF Value