CochlearCHEOF +5.20%62 Interest Coverage is 30.83 as of Dec. 2025, which is 12% below its 10-year median of 35.22. GuruFocus rates CHEOF with a GF Score™ of 62/100 and a GF Value™ of $209.50 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 468 Medical Devices & Instruments companies, Cochlear ranks better than 61.54% 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. Cochlear's
Operating Income
for the
six
months ended in Dec. 2025 was $129 Mil. Cochlear's Interest Expense for the
six
months ended in Dec. 2025 was $-4 Mil.
Cochlear's interest coverage for the quarter that ended in Dec. 2025 was 30.83.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Cochlear's Interest Coverage or its related term are showing as below:
CHEOF'
s Interest Coverage Range Over the Past 10 Years
Min: 14.27 Med: 35.22 Max: 59.04
Current: 33.12
CHEOF's Interest Coverage is ranked better than 61.54% of 468
companies
in the Medical Devices & Instruments industry
Industry Median: 15.71
vs CHEOF: 33.12
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 .
Cochlear Interest Coverage Related Terms
Cochlear Interest Coverage Historical Data
* Premium members only.
The historical data trend for Cochlear'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.
CHEOF vs ABT, SYK, MDT: Interest Coverage Comparison
For the Medical Devices subindustry, Cochlear'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.
Cochlear Interest Coverage vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Cochlear's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Cochlear'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.
Cochlear (CHEOF) has a Interest Coverage of 30.83 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cochlear and its competitors. This is 12% below median its historical median of 35.22. Over the past decade, Cochlear's Interest Coverage has ranged from 14.27 to 59.04. According to the industry distribution chart, Cochlear ranks #180 out of 468 companies in the Medical Devices & Instruments industry, placing it in the top 38.5%.
Is Cochlear's Interest Coverage too high?
Cochlear's current Interest Coverage of 30.83 is 12% below median its 10-year median of 35.22. Over the past 10 years, this metric has ranged from a low of 14.27 to a high of 59.04. The Medical Devices & Instruments industry median Interest Coverage is 15.71. Cochlear's value of 30.83 is 96.2% above this industry median. Based on the distribution chart, Cochlear ranks #180 out of 468 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Cochlear has a GF Score™ of 62/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cochlear's Interest Coverage compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Cochlear ranks #180 out of 468 companies for Interest Coverage. This puts Cochlear in the upper half of its industry. The industry median Interest Coverage is 15.71. Cochlear's value of 30.83 is 96.2% above this benchmark. Historically, Cochlear's own Interest Coverage has ranged from 14.27 to 59.04 over the past decade. While the company's 10-year median is 35.22 vs. the industry median of 15.71, Cochlear 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 Medical Devices & Instruments company?
The median Interest Coverage among Medical Devices & Instruments companies is 15.71, based on 468 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. Cochlear's current Interest Coverage of 30.83 is 96.2% 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 Cochlear and its competitors. For the Medical Devices & Instruments industry, the median Interest Coverage is 15.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cochlear's current Interest Coverage is 30.83, which is 12% below median its own 10-year median of 35.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cochlear stock overvalued right now?
Based on GuruFocus' analysis, Cochlear (CHEOF) is currently considered Significantly Undervalued. The stock's GF Value™ is $209.50, compared to a current price of $79.48 — trading 62.1% below its estimated fair value. The current Interest Coverage is 30.83, which is 12% below median its 10-year median of 35.22 and 96.2% above the Medical Devices & Instruments industry median of 15.71. Cochlear's overall GF Score™ is 62/100 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 Cochlear (CHEOF), the current Interest Coverage is 30.83 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 Cochlear (CHEOF) Overvalued in 2026?
Based on GuruFocus' analysis, Cochlear stock appears to be undervalued.
The current stock price of $79.48 is trading 62.1% below its estimated GF Value™ of $209.50.
GuruFocus considers Cochlear to be Significantly Undervalued.
Key valuation signals for CHEOF:
Interest Coverage: 30.83 (12% below median its 10-year median of 35.22)
GF Value™: $209.50 vs. price of $79.48 (62.1% below fair value)
Industry Position: 96.2% above the Medical Devices & Instruments median (#180 of 468)
No single metric tells the full story. See the CHEOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cochlear is the leading cochlear implant device manufacturer, with around 60% global market share. Developed markets contribute 80% of group revenue, where cochlear implants are the standard of care for children with severe-to-profound hearing loss. The company also actively targets the growing cohort of seniors in developed markets. Tender-oriented emerging markets contribute the remaining 20% of group revenue. Main products include cochlear implants, bone-anchored hearing aids, and associated sound processors. In fiscal 2025, 49% of revenue came from the Americas, 34% from Europe, the Middle East, and Africa, and 18% from the Asia-Pacific segment.
62GF Score
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