Australian Ethical InvestmentASX:AEF -0.74%98 Interest Coverage is 318.84 as of Dec. 2025, which is 5% above its 10-year median of 303.34. GuruFocus rates ASX:AEF with a GF Score™ of 98/100 and a GF Value™ of A$6.36 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 476 Asset Management companies, Australian Ethical Investment ranks better than 62.39% 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. Australian Ethical Investment's
Operating Income
for the
six
months ended in Dec. 2025 was A$19.8 Mil. Australian Ethical Investment's Interest Expense for the
six
months ended in Dec. 2025 was A$-0.1 Mil.
Australian Ethical Investment's interest coverage for the quarter that ended in Dec. 2025 was 318.84.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Australian Ethical Investment Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Australian Ethical Investment's Interest Coverage or its related term are showing as below:
ASX:AEF'
s Interest Coverage Range Over the Past 10 Years
Min: 128.68 Med: 303.34 Max: No Debt
Current: 235.91
ASX:AEF's Interest Coverage is ranked better than 62.39% of 476
companies
in the Asset Management industry
Industry Median: 43.13
vs ASX:AEF: 235.91
Australian Ethical Investment (ASX:AEF) 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 .
Australian Ethical Investment Interest Coverage Related Terms
Australian Ethical Investment Interest Coverage Historical Data
* 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.
Australian Ethical Investment Interest Coverage Chart
ASX:AEF vs BLK, BX, KKR: Interest Coverage Comparison
For the Asset Management subindustry, Australian Ethical Investment'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.
Australian Ethical Investment Interest Coverage vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Australian Ethical Investment's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Australian Ethical Investment's Interest Coverage falls into.
Australian Ethical Investment 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:
* 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.
Australian Ethical Investment (ASX:AEF) has a Interest Coverage of 318.84 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Australian Ethical Investment and its competitors. This is near median its historical median of 303.34. Over the past decade, Australian Ethical Investment's Interest Coverage has ranged from 128.68 to 10,000.00. According to the industry distribution chart, Australian Ethical Investment ranks #179 out of 476 companies in the Asset Management industry, placing it in the top 37.6%.
Is Australian Ethical Investment's Interest Coverage too high?
Australian Ethical Investment's current Interest Coverage of 318.84 is near median its 10-year median of 303.34. Over the past 10 years, this metric has ranged from a low of 128.68 to a high of 10,000.00. The Asset Management industry median Interest Coverage is 43.13. Australian Ethical Investment's value of 318.84 is 639.3% above this industry median. Based on the distribution chart, Australian Ethical Investment ranks #179 out of 476 companies in the Asset Management industry, which is above the industry midpoint. Overall, Australian Ethical Investment has a GF Score™ of 98/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Australian Ethical Investment's Interest Coverage compare to BLK and BX?
According to the Asset Management industry distribution chart, Australian Ethical Investment ranks #179 out of 476 companies for Interest Coverage. This puts Australian Ethical Investment in the upper half of its industry. The industry median Interest Coverage is 43.13. Australian Ethical Investment's value of 318.84 is 639.3% above this benchmark. Historically, Australian Ethical Investment's own Interest Coverage has ranged from 128.68 to 10,000.00 over the past decade. While the company's 10-year median is 303.34 vs. the industry median of 43.13, Australian Ethical Investment has consistently been above 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 an Asset Management company?
The median Interest Coverage among Asset Management companies is 43.13, based on 476 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. Australian Ethical Investment's current Interest Coverage of 318.84 is 639.3% above 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 Australian Ethical Investment and its competitors. For the Asset Management industry, the median Interest Coverage is 43.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Ethical Investment's current Interest Coverage is 318.84, which is near median its own 10-year median of 303.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Ethical Investment stock overvalued right now?
Based on GuruFocus' analysis, Australian Ethical Investment (ASX:AEF) is currently considered Possible Value Trap. The stock's GF Value™ is A$6.36, compared to a current price of A$4.05 — trading 36.3% below its estimated fair value. The current Interest Coverage is 318.84, which is near median its 10-year median of 303.34 and 639.3% above the Asset Management industry median of 43.13. Australian Ethical Investment's overall GF Score™ is 98/100 with 2 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 Australian Ethical Investment (ASX:AEF), the current Interest Coverage is 318.84 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 Australian Ethical Investment (ASX:AEF) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Ethical Investment stock appears to be undervalued.
The current stock price of A$4.05 is trading 36.3% below its estimated GF Value™ of A$6.36.
GuruFocus considers Australian Ethical Investment to be Possible Value Trap.
Key valuation signals for ASX:AEF:
Interest Coverage: 318.84 (near median its 10-year median of 303.34)
GF Value™: A$6.36 vs. price of A$4.05 (36.3% below fair value)
Industry Position: 639.3% above the Asset Management median (#179 of 476)
No single metric tells the full story. See the ASX:AEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Ethical Investment Business Description
Australian Ethical Investment Ltd is an Australian-based company engaged in the operating segment of Funds Management. The company is involved in acting as the responsible entity for a range of public offer ethically managed investment schemes and acting as the Trustee of the Australian Ethical Retail Superannuation Fund (Super Fund). The various products offered by the company are Super, Managed funds, ETFs, Insurance, and Pension.
98GF Score
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