Diversified Royalty (TSX:DIV) Effective Interest Rate on Debt %: 5.21% (As of Mar. 2026)

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TSX:DIV Diversified Royalty Corp TSX:DIV
84 GF Score
Price C$4.54
GF Value C$3.68
Valuation Modestly Overvalued
! 11 Warning Signs
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What is Diversified Royalty Effective Interest Rate on Debt %?

Diversified Royalty TSX:DIV 84 Effective Interest Rate on Debt % is 5.21% as of Mar. 2026. GuruFocus rates TSX:DIV with a GF Score™ of 84/100 and a GF Value™ of C$3.68 (Modestly Overvalued). 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. Diversified Royalty's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was C$15.86 Mil. Diversified Royalty's average total debt for the quarter that ended in Mar. 2026 was C$304.27 Mil. Therefore, Diversified Royalty's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 5.21%.


Diversified Royalty  (TSX:DIV) Effective Interest Rate on Debt % Explanation

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


Diversified Royalty Effective Interest Rate on Debt % Related Terms


Diversified Royalty Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Diversified Royalty'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.

Diversified Royalty Effective Interest Rate on Debt % Chart

Diversified Royalty 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 5.15 5.28 6.05 6.23 6.37

Diversified Royalty 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 4.88 4.83 4.97 10.08 5.21

TSX:DIV vs CTAS, CPRT, ULS: Effective Interest Rate on Debt % Comparison

For the Specialty Business Services subindustry, Diversified Royalty'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.


Diversified Royalty Effective Interest Rate on Debt % vs Business Services Industry

For the Business Services industry and Industrials sector, Diversified Royalty's Effective Interest Rate on Debt % distribution charts can be found below:

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


TSX:DIV
84GF Score
Diversified Royalty Corp TSX:DIV
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Diversified Royalty Effective Interest Rate on Debt % Calculation

Diversified Royalty'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  *  -17.405/( (260.466+285.822)/ 2 )
=-1  *  -17.405/273.144
=6.37 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=260.466 + 0
=260.466

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=276.685 + 9.137
=285.822

Diversified Royalty'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  *  -15.86/( (285.822+322.715)/ 2 )
=-1  *  -15.86/304.2685
=5.21 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=276.685 + 9.137
=285.822

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=315.806 + 6.909
=322.715

* 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 5.21% mean?
Diversified Royalty (TSX:DIV) has a Effective Interest Rate on Debt % of 5.21% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Diversified Royalty and its competitors.
Is Diversified Royalty's Effective Interest Rate on Debt % too high?
Diversified Royalty's current Effective Interest Rate on Debt % is 5.21%. Overall, Diversified Royalty has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diversified Royalty's Effective Interest Rate on Debt % compare to CTAS and CPRT?
Diversified Royalty's Effective Interest Rate on Debt % of 5.21% can be compared against companies in the Business Services 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 Business Services company?
A good Effective Interest Rate on Debt % depends on the Business Services 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 Diversified Royalty and its competitors. Diversified Royalty's current Effective Interest Rate on Debt % is 5.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diversified Royalty stock overvalued right now?
Based on GuruFocus' analysis, Diversified Royalty (TSX:DIV) is currently considered Modestly Overvalued. The stock's GF Value™ is C$3.68, compared to a current price of C$4.54 — trading 23.4% above its estimated fair value. The current Effective Interest Rate on Debt % is 5.21%. Diversified Royalty's overall GF Score™ is 84/100 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 Diversified Royalty (TSX:DIV), the current Effective Interest Rate on Debt % is 5.21% 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 Diversified Royalty (TSX:DIV) Overvalued in 2026?

Based on GuruFocus' analysis, Diversified Royalty stock appears to be overvalued. The current stock price of C$4.54 is trading 23.4% above its estimated GF Value™ of C$3.68. GuruFocus considers Diversified Royalty to be Modestly Overvalued.

Key valuation signals for TSX:DIV:

  • Effective Interest Rate on Debt %: 5.21%
  • GF Value™: C$3.68 vs. price of C$4.54 (23.4% above fair value)
  • GF Score™: 84/100 with 11 warning signs

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


Diversified Royalty Business Description

Other Exchanges BEVFF:USABEW:Germany
Address 609 Granville Street, Suite 330, P.O. Box 10033, Vancouver, BC, CAN, V7Y 1A1
Diversified Royalty Corp is a multi-royalty company. It is engaged in the business of acquiring royalties from multi-location businesses and franchisors in North America. The firm purchases trademarks of the companies it is going to acquire. Its objective is to acquire predictable, growing royalty streams from a diverse group of multi-location businesses and franchisors. All of the company's operating revenues are earned from the receipt of royalties and management fees from its Royalty Partners.
84GF Score

Get the complete analysis for TSX:DIV

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

C$4.54
Price
C$3.68
GF Value