Bausch HealthBHC +5.81%58 Interest Coverage is 1.30 as of Mar. 2026, which is 44% above its 10-year median of 0.90. GuruFocus rates BHC with a GF Score™ of 58/100 and a GF Value™ of $7.91 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 685 Drug Manufacturers companies, Bausch Health ranks worse than 89.05% 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. Bausch Health's
Operating Income
for the
three
months ended in Mar. 2026 was $521 Mil. Bausch Health's Interest Expense for the
three
months ended in Mar. 2026 was $-402 Mil.
Bausch Health's interest coverage for the quarter that ended in Mar. 2026 was 1.30.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Bausch Health Companies Inc interest coverage is 1.46, which is low.
The historical rank and industry rank for Bausch Health's Interest Coverage or its related term are showing as below:
BHC'
s Interest Coverage Range Over the Past 10 Years
Min: 0.3 Med: 0.9 Max: 1.46
Current: 1.46
BHC's Interest Coverage is ranked worse than 89.05% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs BHC: 1.46
Bausch Health (NYSE:BHC) 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 .
Bausch Health Interest Coverage Related Terms
Bausch Health Interest Coverage Historical Data
* Premium members only.
The historical data trend for Bausch Health'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Bausch Health'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.
Bausch Health Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Bausch Health's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Bausch Health'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.
Bausch Health (BHC) has a Interest Coverage of 1.30 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Bausch Health and its competitors. This is 44% above median its historical median of 0.90. Over the past decade, Bausch Health's Interest Coverage has ranged from 0.30 to 1.46. According to the industry distribution chart, Bausch Health ranks #610 out of 685 companies in the Drug Manufacturers industry, placing it in the top 89.1%.
Is Bausch Health's Interest Coverage too high?
Bausch Health's current Interest Coverage of 1.30 is 44% above median its 10-year median of 0.90. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 1.46. The Drug Manufacturers industry median Interest Coverage is 12.78. Bausch Health's value of 1.30 is 89.8% below this industry median. Based on the distribution chart, Bausch Health ranks #610 out of 685 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Bausch Health has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Bausch Health's Interest Coverage compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Bausch Health ranks #610 out of 685 companies for Interest Coverage. This places Bausch Health in the lower half of its industry. The industry median Interest Coverage is 12.78. Bausch Health's value of 1.30 is 89.8% below this benchmark. Historically, Bausch Health's own Interest Coverage has ranged from 0.30 to 1.46 over the past decade. While the company's 10-year median is 0.90 vs. the industry median of 12.78, Bausch Health 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.78, based on 685 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. Bausch Health's current Interest Coverage of 1.30 is 89.8% 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 Bausch Health and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bausch Health's current Interest Coverage is 1.30, which is 44% above median its own 10-year median of 0.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bausch Health stock overvalued right now?
Based on GuruFocus' analysis, Bausch Health (BHC) is currently considered Possible Value Trap. The stock's GF Value™ is $7.91, compared to a current price of $5.28 — trading 33.2% below its estimated fair value. The current Interest Coverage is 1.30, which is 44% above median its 10-year median of 0.90 and 89.8% below the Drug Manufacturers industry median of 12.78. Bausch Health's overall GF Score™ is 58/100 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 Bausch Health (BHC), the current Interest Coverage is 1.30 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 Bausch Health (BHC) Overvalued in 2026?
Based on GuruFocus' analysis, Bausch Health stock appears to be undervalued.
The current stock price of $5.28 is trading 33.2% below its estimated GF Value™ of $7.91.
GuruFocus considers Bausch Health to be Possible Value Trap.
Key valuation signals for BHC:
Interest Coverage: 1.30 (44% above median its 10-year median of 0.90)
GF Value™: $7.91 vs. price of $5.28 (33.2% below fair value)
Industry Position: 89.8% below the Drug Manufacturers median (#610 of 685)
No single metric tells the full story. See the BHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bausch Health Companies Inc is a world-wide specialty pharmaceutical, consumer health, and medical device company with a focus on branded products for the gastroenterology, hepatology, neurology and dermatology markets. The company reports revenue in five segments: Salix; International; Solta Medical; Diversified Products and Bausch + Lomb. It generates maximum of its revenue from the Bausch + Lomb segment.
58GF Score
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