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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. Observit AB's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was €0.03 Mil. Observit AB's average total debt for the quarter that ended in Mar. 2026 was €0.19 Mil. Therefore, Observit AB's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 14.97%.
Observit AB (FRA:T3Z) Effective Interest Rate on Debt % Explanation
Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.
Observit AB Effective Interest Rate on Debt % Related Terms
Observit AB Effective Interest Rate on Debt % Historical Data
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The historical data trend for Observit 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.
Observit AB Effective Interest Rate on Debt % Chart
FRA:T3Z vs IBM, ACN, FISV: Effective Interest Rate on Debt % Comparison
For the Information Technology Services subindustry, Observit 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.
Observit AB Effective Interest Rate on Debt % vs Software Industry
For the Software industry and Technology sector, Observit AB's Effective Interest Rate on Debt % distribution charts can be found below:
* The bar in red indicates where Observit AB'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 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 14.97% mean?
Observit AB (FRA:T3Z) has a Effective Interest Rate on Debt % of 14.97% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Observit AB and its competitors.
Is Observit AB's Effective Interest Rate on Debt % too high?
Observit AB's current Effective Interest Rate on Debt % is 14.97%. Overall, Observit AB has a GF Score™ of 33/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Observit AB's Effective Interest Rate on Debt % compare to IBM and ACN?
Observit AB's Effective Interest Rate on Debt % of 14.97% can be compared against companies in the Software 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 Software company?
A good Effective Interest Rate on Debt % depends on the Software 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 Observit AB and its competitors. Observit AB's current Effective Interest Rate on Debt % is 14.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Observit AB stock overvalued right now?
Based on GuruFocus' analysis, Observit AB (FRA:T3Z) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.03, compared to a current price of €0.06 — trading 86.3% above its estimated fair value. The current Effective Interest Rate on Debt % is 14.97%. Observit AB's overall GF Score™ is 33/100 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 Observit AB (FRA:T3Z), the current Effective Interest Rate on Debt % is 14.97% 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 Observit AB (FRA:T3Z) Overvalued in 2026?
Based on GuruFocus' analysis, Observit AB stock appears to be overvalued.
The current stock price of €0.06 is trading 86.3% above its estimated GF Value™ of €0.03.
GuruFocus considers Observit AB to be Significantly Overvalued.
Key valuation signals for FRA:T3Z:
Effective Interest Rate on Debt %: 14.97%
GF Value™: €0.03 vs. price of €0.06 (86.3% above fair value)
No single metric tells the full story. See the FRA:T3Z stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Observit AB is the market leader in the Nordics when it comes to mobile video surveillance in public transport. The company provides software as a cloud service, and a Software as a Service (SaaS) solution, and currently has approximately 38,000 licenses (one license per security camera) connected globally. The customer base includes bus operators such as Nobina, Keolis, and Arriva and other transport-heavy customers such as Elis. Observit wants to become the brand for mobile video solutions in the transport sector.
33GF Score
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