Aussie Broadband (ASX:ABB) Interest Coverage: 4.39 (As of Dec. 2025) — 18% Above Median


ASX:ABB Aussie Broadband Ltd ASX:ABB
60 GF Score
Price A$4.90
GF Value A$4.70
Valuation Fairly Valued
! 3 Warning Signs
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What is Aussie Broadband Interest Coverage?

Aussie Broadband ASX:ABB -0.41% 60 Interest Coverage is 4.39 as of Dec. 2025, which is 18% above its 10-year median of 3.71. GuruFocus rates ASX:ABB with a GF Score™ of 60/100 and a GF Value™ of A$4.70 (Fairly Valued). The stock has 3 warning signs investors should review. Among 286 Telecommunication Services companies, Aussie Broadband ranks worse than 54.9% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Aussie Broadband's Operating Income for the six months ended in Dec. 2025 was A$37 Mil. Aussie Broadband's Interest Expense for the six months ended in Dec. 2025 was A$-8 Mil. Aussie Broadband's interest coverage for the quarter that ended in Dec. 2025 was 4.39. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Aussie Broadband's Interest Coverage or its related term are showing as below:

ASX:ABB' s Interest Coverage Range Over the Past 10 Years
Min: 3.07   Med: 3.71   Max: 8.83
Current: 4.23


ASX:ABB's Interest Coverage is ranked worse than
54.9% of 286 companies
in the Telecommunication Services industry
Industry Median: 4.715 vs ASX:ABB: 4.23

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Aussie Broadband  (ASX:ABB) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Aussie Broadband Interest Coverage Related Terms


Aussie Broadband Interest Coverage Historical Data

* Premium members only.

The historical data trend for Aussie Broadband's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Aussie Broadband Interest Coverage Chart

Aussie Broadband Annual Data
Trend Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial 4.56 8.83 3.61 3.71 3.07

Aussie Broadband Semi-Annual Data
Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.27 3.97 2.36 4.07 4.39

ASX:ABB vs TMUS, VZ, T: Interest Coverage Comparison

For the Telecom Services subindustry, Aussie Broadband's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.


Aussie Broadband Interest Coverage vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Aussie Broadband's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Aussie Broadband's Interest Coverage falls into.


ASX:ABB
60GF Score
Aussie Broadband Ltd ASX:ABB
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Aussie Broadband Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Aussie Broadband's Interest Coverage for the fiscal year that ended in Jun. 2025 is calculated as

Here, for the fiscal year that ended in Jun. 2025, Aussie Broadband's Interest Expense was A$-21 Mil. Its Operating Income was A$64 Mil. And its Long-Term Debt & Capital Lease Obligation was A$245 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*63.876/-20.774
=3.07

Aussie Broadband's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the six months ended in Dec. 2025, Aussie Broadband's Interest Expense was A$-8 Mil. Its Operating Income was A$37 Mil. And its Long-Term Debt & Capital Lease Obligation was A$241 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*37.282/-8.493
=4.39

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 4.39 mean?
Aussie Broadband (ASX:ABB) has a Interest Coverage of 4.39 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Aussie Broadband and its competitors. This is 18% above median its historical median of 3.71. Over the past decade, Aussie Broadband's Interest Coverage has ranged from 3.07 to 8.83. According to the industry distribution chart, Aussie Broadband ranks #157 out of 286 companies in the Telecommunication Services industry, placing it in the top 54.9%.
Is Aussie Broadband's Interest Coverage too high?
Aussie Broadband's current Interest Coverage of 4.39 is 18% above median its 10-year median of 3.71. Over the past 10 years, this metric has ranged from a low of 3.07 to a high of 8.83. The Telecommunication Services industry median Interest Coverage is 4.72. Aussie Broadband's value of 4.39 is 6.9% below this industry median. Based on the distribution chart, Aussie Broadband ranks #157 out of 286 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Aussie Broadband has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Aussie Broadband's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Aussie Broadband ranks #157 out of 286 companies for Interest Coverage. This places Aussie Broadband in the lower half of its industry. The industry median Interest Coverage is 4.72. Aussie Broadband's value of 4.39 is 6.9% below this benchmark. Historically, Aussie Broadband's own Interest Coverage has ranged from 3.07 to 8.83 over the past decade. While the company's 10-year median is 3.71 vs. the industry median of 4.72, Aussie Broadband has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.72, based on 286 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aussie Broadband's current Interest Coverage of 4.39 is 6.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Aussie Broadband and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aussie Broadband's current Interest Coverage is 4.39, which is 18% above median its own 10-year median of 3.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aussie Broadband stock overvalued right now?
Based on GuruFocus' analysis, Aussie Broadband (ASX:ABB) is currently considered Fairly Valued. The stock's GF Value™ is A$4.70, compared to a current price of A$4.90 — trading 4.3% above its estimated fair value. The current Interest Coverage is 4.39, which is 18% above median its 10-year median of 3.71 and 6.9% below the Telecommunication Services industry median of 4.72. Aussie Broadband's overall GF Score™ is 60/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Aussie Broadband (ASX:ABB), the current Interest Coverage is 4.39 as of Dec. 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 Aussie Broadband (ASX:ABB) Overvalued in 2026?

Based on GuruFocus' analysis, Aussie Broadband stock appears to be overvalued. The current stock price of A$4.90 is trading 4.3% above its estimated GF Value™ of A$4.70. GuruFocus considers Aussie Broadband to be Fairly Valued.

Key valuation signals for ASX:ABB:

  • Interest Coverage: 4.39 (18% above median its 10-year median of 3.71)
  • GF Value™: A$4.70 vs. price of A$4.90 (4.3% above fair value)
  • GF Score™: 60/100 with 3 warning signs
  • Industry Position: 6.9% below the Telecommunication Services median (#157 of 286)

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


Aussie Broadband Business Description

Other Exchanges 9JI:Germany
Address 3 Electra Avenue, Morwell, VIC, AUS, 3840
Aussie Broadband is Australia's fourth-largest retail internet services provider. It provides broadband services to households and businesses, as well as wholesale solutions to commercial enterprises. Aussie Broadband also operates as a mobile virtual network operator, using Optus' network to provide mobile services. In 2020, the firm expanded its offerings by laying its own fiber network to service enterprise and government customers. The firm has undertaken two acquisitions, Symbio and Over the Wire, expanding its offerings for enterprise, government, and wholesale customers.
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$4.90
Price
A$4.70
GF Value