Ratos AB (FRA:RAZC) Effective Interest Rate on Debt %: 4.70% (As of Mar. 2026)


FRA:RAZC Ratos AB FRA:RAZC
41 GF Score
Price €2.83
GF Value €2.01
Valuation Significantly Overvalued
! 3 Warning Signs
View Full Analysis

What is Ratos AB Effective Interest Rate on Debt %?

Ratos AB FRA:RAZC +0.71% 41 Effective Interest Rate on Debt % is 4.70% as of Mar. 2026. GuruFocus rates FRA:RAZC with a GF Score™ of 41/100 and a GF Value™ of €2.01 (Significantly Overvalued). The stock has 3 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. Ratos AB's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was €36 Mil. Ratos AB's average total debt for the quarter that ended in Mar. 2026 was €767 Mil. Therefore, Ratos AB's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 4.70%.


Ratos AB  (FRA:RAZC) Effective Interest Rate on Debt % Explanation

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


Ratos AB Effective Interest Rate on Debt % Related Terms


Ratos AB Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Ratos AB'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.

Ratos AB Effective Interest Rate on Debt % Chart

Ratos AB Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.89 3.61 5.22 7.13 6.17

Ratos AB Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 6.92 5.93 4.87 5.53 4.70

FRA:RAZC vs PWR, FIX, EME: Effective Interest Rate on Debt % Comparison

For the Engineering & Construction subindustry, Ratos AB'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.


Ratos AB Effective Interest Rate on Debt % vs Construction Industry

For the Construction industry and Industrials sector, Ratos AB's Effective Interest Rate on Debt % distribution charts can be found below:

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


FRA:RAZC
41GF Score
Ratos AB FRA:RAZC
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ratos AB Effective Interest Rate on Debt % Calculation

Ratos AB's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -46.589/( (782.691+727.235)/ 2 )
=-1  *  -46.589/754.963
=6.17 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=661.849 + 120.842
=782.691

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=643.429 + 83.806
=727.235

Ratos AB's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -36.02/( (727.235+807.143)/ 2 )
=-1  *  -36.02/767.189
=4.70 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=643.429 + 83.806
=727.235

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=688.216 + 118.927
=807.143

* 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 (Mar. 2026) 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 4.70% mean?
Ratos AB (FRA:RAZC) has a Effective Interest Rate on Debt % of 4.70% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Ratos AB and its competitors.
Is Ratos AB's Effective Interest Rate on Debt % too high?
Ratos AB's current Effective Interest Rate on Debt % is 4.70%. Overall, Ratos AB has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ratos AB's Effective Interest Rate on Debt % compare to PWR and FIX?
Ratos AB's Effective Interest Rate on Debt % of 4.70% can be compared against companies in the Construction 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 a Construction company?
A good Effective Interest Rate on Debt % depends on the Construction 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 Ratos AB and its competitors. Ratos AB's current Effective Interest Rate on Debt % is 4.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ratos AB stock overvalued right now?
Based on GuruFocus' analysis, Ratos AB (FRA:RAZC) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.01, compared to a current price of €2.83 — trading 40.8% above its estimated fair value. The current Effective Interest Rate on Debt % is 4.70%. Ratos AB's overall GF Score™ is 41/100 with 3 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 Ratos AB (FRA:RAZC), the current Effective Interest Rate on Debt % is 4.70% as of Mar. 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 Ratos AB (FRA:RAZC) Overvalued in 2026?

Based on GuruFocus' analysis, Ratos AB stock appears to be overvalued. The current stock price of €2.83 is trading 40.8% above its estimated GF Value™ of €2.01. GuruFocus considers Ratos AB to be Significantly Overvalued.

Key valuation signals for FRA:RAZC:

  • Effective Interest Rate on Debt %: 4.70%
  • GF Value™: €2.01 vs. price of €2.83 (40.8% above fair value)
  • GF Score™: 41/100 with 3 warning signs

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


Ratos AB Business Description

Address Sturegatan 10, Box 511, Stockholm, SWE, SE-114 11
Ratos AB is an investment company that owns and develops unlisted medium-and small-sized Nordic companies. The company focuses on technological and infrastructure solutions and comprises two business segment; Construction & Services and Consumer. Majority of the revenue is generated from its Construction & Services segment which predominantly includes maintenance of infrastructure within railway, road, energy solutions, and construction of new critical buildings such as hospitals, schools, police stations and governmental buildings in the Nordics. Geographically, the company generates majority of its revenue from Norway and rest from Sweden and other regions.
41GF Score

Get the complete analysis for FRA:RAZC

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

€2.83
Price
€2.01
GF Value