Servcorp (ASX:SRV) Interest Coverage: 6.20 (As of Dec. 2025) — 65% Above Median


ASX:SRV Servcorp Ltd ASX:SRV
76 GF Score
Price A$6.48
GF Value A$5.07
Valuation Modestly Overvalued
! 1 Warning Sign
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What is Servcorp Interest Coverage?

Servcorp ASX:SRV -0.77% 76 Interest Coverage is 6.20 as of Dec. 2025, which is 65% above its 10-year median of 3.75. GuruFocus rates ASX:SRV with a GF Score™ of 76/100 and a GF Value™ of A$5.07 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 1,300 Real Estate companies, Servcorp ranks better than 50.92% 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. Servcorp's Operating Income for the six months ended in Dec. 2025 was A$47.1 Mil. Servcorp's Interest Expense for the six months ended in Dec. 2025 was A$-7.6 Mil. Servcorp's interest coverage for the quarter that ended in Dec. 2025 was 6.20. The higher the ratio, the stronger the company's financial strength is.

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

ASX:SRV' s Interest Coverage Range Over the Past 10 Years
Min: 0.46   Med: 3.75   Max: 395.35
Current: 4.44


ASX:SRV's Interest Coverage is ranked better than
50.92% of 1300 companies
in the Real Estate industry
Industry Median: 4.245 vs ASX:SRV: 4.44

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


Servcorp  (ASX:SRV) 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 .


Servcorp Interest Coverage Related Terms


Servcorp Interest Coverage Historical Data

* Premium members only.

The historical data trend for Servcorp'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.

Servcorp Interest Coverage Chart

Servcorp Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.46 1.65 1.48 2.54 3.75

Servcorp Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.95 1.16 5.01 2.62 6.20

ASX:SRV vs CBRE, BEKE, JLL: Interest Coverage Comparison

For the Real Estate Services subindustry, Servcorp'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.


Servcorp Interest Coverage vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Servcorp's Interest Coverage distribution charts can be found below:

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


ASX:SRV
76GF Score
Servcorp Ltd ASX:SRV
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Servcorp 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.

Servcorp'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, Servcorp's Interest Expense was A$-14.0 Mil. Its Operating Income was A$52.4 Mil. And its Long-Term Debt & Capital Lease Obligation was A$264.6 Mil.

Interest Coverage=-1* Operating Income (A: Jun. 2025 )/Interest Expense (A: Jun. 2025 )
=-1*52.364/-13.965
=3.75

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

Here, for the six months ended in Dec. 2025, Servcorp's Interest Expense was A$-7.6 Mil. Its Operating Income was A$47.1 Mil. And its Long-Term Debt & Capital Lease Obligation was A$253.3 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*47.128/-7.602
=6.20

* 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 6.20 mean?
Servcorp (ASX:SRV) has a Interest Coverage of 6.20 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Servcorp and its competitors. This is 65% above median its historical median of 3.75. Over the past decade, Servcorp's Interest Coverage has ranged from 0.46 to 395.35. According to the industry distribution chart, Servcorp ranks #638 out of 1300 companies in the Real Estate industry, placing it in the top 49.1%.
Is Servcorp's Interest Coverage too high?
Servcorp's current Interest Coverage of 6.20 is 65% above median its 10-year median of 3.75. Over the past 10 years, this metric has ranged from a low of 0.46 to a high of 395.35. The Real Estate industry median Interest Coverage is 4.25. Servcorp's value of 6.20 is 46.1% above this industry median. Based on the distribution chart, Servcorp ranks #638 out of 1300 companies in the Real Estate industry, which is above the industry midpoint. Overall, Servcorp has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Servcorp's Interest Coverage compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Servcorp ranks #638 out of 1300 companies for Interest Coverage. This puts Servcorp in the upper half of its industry. The industry median Interest Coverage is 4.25. Servcorp's value of 6.20 is 46.1% above this benchmark. Historically, Servcorp's own Interest Coverage has ranged from 0.46 to 395.35 over the past decade. While the company's 10-year median is 3.75 vs. the industry median of 4.25, Servcorp 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 a Real Estate company?
The median Interest Coverage among Real Estate companies is 4.25, based on 1,300 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. Servcorp's current Interest Coverage of 6.20 is 46.1% 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 Servcorp and its competitors. For the Real Estate industry, the median Interest Coverage is 4.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Servcorp's current Interest Coverage is 6.20, which is 65% above median its own 10-year median of 3.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Servcorp stock overvalued right now?
Based on GuruFocus' analysis, Servcorp (ASX:SRV) is currently considered Modestly Overvalued. The stock's GF Value™ is A$5.07, compared to a current price of A$6.48 — trading 27.8% above its estimated fair value. The current Interest Coverage is 6.20, which is 65% above median its 10-year median of 3.75 and 46.1% above the Real Estate industry median of 4.25. Servcorp's overall GF Score™ is 76/100 with 1 warning sign 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 Servcorp (ASX:SRV), the current Interest Coverage is 6.20 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 Servcorp (ASX:SRV) Overvalued in 2026?

Based on GuruFocus' analysis, Servcorp stock appears to be overvalued. The current stock price of A$6.48 is trading 27.8% above its estimated GF Value™ of A$5.07. GuruFocus considers Servcorp to be Modestly Overvalued.

Key valuation signals for ASX:SRV:

  • Interest Coverage: 6.20 (65% above median its 10-year median of 3.75)
  • GF Value™: A$5.07 vs. price of A$6.48 (27.8% above fair value)
  • GF Score™: 76/100 with 1 warning sign
  • Industry Position: 46.1% above the Real Estate median (#638 of 1300)

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


Servcorp Business Description

Address 19-25 Martin Place, Level 63, MLC Centre, Sydney, NSW, AUS, 2000
Servcorp Ltd is a provider of a wide variety of office-space solutions for businesses, including virtual offices, executive suites, meeting rooms, and other accommodations. The company was founded in Australia but currently operates in numerous large cities across countries, including New York, Sydney, London, Paris, Tokyo, Hong Kong, and Dubai. Notable locations include a co-working space in the One World Trade Center in New York City. The company reports revenue from like-for-like floor income. The company has its operating segments in Australia, New Zealand, and Southeast Asia (ANZ/SEA); the United States of America (USA); Europe and the Middle East (EME); North Asia, and Other.
76GF Score

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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$6.48
Price
A$5.07
GF Value