TowerASX:TWR 85 Interest Coverage is 42.09 as of Mar. 2026, which is 45% above its 10-year median of 29.09. GuruFocus rates ASX:TWR with a GF Score™ of 85/100 and a GF Value™ of A$1.37 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 351 Insurance companies, Tower ranks better than 69.52% 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
EBIT
by its Interest Expense. Tower's
EBIT
for the
six
months ended in Mar. 2026 was A$27.5 Mil. Tower's Interest Expense for the
six
months ended in Mar. 2026 was A$-0.7 Mil.
Tower's interest coverage for the quarter that ended in Mar. 2026 was 42.09.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tower's Interest Coverage or its related term are showing as below:
ASX:TWR'
s Interest Coverage Range Over the Past 10 Years
Min: 9.08 Med: 29.09 Max: 84.32
Current: 43.92
ASX:TWR's Interest Coverage is ranked better than 69.52% of 351
companies
in the Insurance industry
Industry Median: 16.23
vs ASX:TWR: 43.92
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 .
Tower Interest Coverage Related Terms
Tower Interest Coverage Historical Data
* Premium members only.
The historical data trend for Tower'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.
ASX:TWR vs CB, PGR, TRV: Interest Coverage Comparison
For the Insurance - Property & Casualty subindustry, Tower'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.
Tower Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Tower's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tower's Interest Coverage falls into.
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.
Tower (ASX:TWR) has a Interest Coverage of 42.09 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tower and its competitors. This is 45% above median its historical median of 29.09. Over the past decade, Tower's Interest Coverage has ranged from 9.08 to 84.32. According to the industry distribution chart, Tower ranks #107 out of 351 companies in the Insurance industry, placing it in the top 30.5%.
Is Tower's Interest Coverage too high?
Tower's current Interest Coverage of 42.09 is 45% above median its 10-year median of 29.09. Over the past 10 years, this metric has ranged from a low of 9.08 to a high of 84.32. The Insurance industry median Interest Coverage is 16.23. Tower's value of 42.09 is 159.3% above this industry median. Based on the distribution chart, Tower ranks #107 out of 351 companies in the Insurance industry, which is above the industry midpoint. Overall, Tower has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tower's Interest Coverage compare to CB and PGR?
According to the Insurance industry distribution chart, Tower ranks #107 out of 351 companies for Interest Coverage. This puts Tower in the upper half of its industry. The industry median Interest Coverage is 16.23. Tower's value of 42.09 is 159.3% above this benchmark. Historically, Tower's own Interest Coverage has ranged from 9.08 to 84.32 over the past decade. While the company's 10-year median is 29.09 vs. the industry median of 16.23, Tower 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 Insurance company?
The median Interest Coverage among Insurance companies is 16.23, based on 351 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. Tower's current Interest Coverage of 42.09 is 159.3% 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 Tower and its competitors. For the Insurance industry, the median Interest Coverage is 16.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tower's current Interest Coverage is 42.09, which is 45% above median its own 10-year median of 29.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tower stock overvalued right now?
Based on GuruFocus' analysis, Tower (ASX:TWR) is currently considered Modestly Overvalued. The stock's GF Value™ is A$1.37, compared to a current price of A$1.54 — trading 12.4% above its estimated fair value. The current Interest Coverage is 42.09, which is 45% above median its 10-year median of 29.09 and 159.3% above the Insurance industry median of 16.23. Tower's overall GF Score™ is 85/100 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 Tower (ASX:TWR), the current Interest Coverage is 42.09 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 Tower (ASX:TWR) Overvalued in 2026?
Based on GuruFocus' analysis, Tower stock appears to be overvalued.
The current stock price of A$1.54 is trading 12.4% above its estimated GF Value™ of A$1.37.
GuruFocus considers Tower to be Modestly Overvalued.
Key valuation signals for ASX:TWR:
Interest Coverage: 42.09 (45% above median its 10-year median of 29.09)
GF Value™: A$1.37 vs. price of A$1.54 (12.4% above fair value)
Industry Position: 159.3% above the Insurance median (#107 of 351)
No single metric tells the full story. See the ASX:TWR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tower Ltd is a general insurance company. The company provides insurance services namely car, house, contents, travel, business, boat insurance, and among others. The company has two geographical segments, New Zealand General Insurance, and Pacific Islands General Insurance. The company derives the majority of its revenue from the New Zealand segment.
85GF Score
Get the complete analysis for ASX:TWR
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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