L'OrealCHIX:ORP +2.06%93 Interest Coverage is 22.47 as of Dec. 2025, which is 71% below its 10-year median of 76.77. GuruFocus rates CHIX:ORP with a GF Score™ of 93/100 and a GF Value™ of €413.93 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,513 Consumer Packaged Goods companies, L'Oreal ranks better than 68.01% 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. L'Oreal's
Operating Income
for the
six
months ended in Dec. 2025 was €4,152 Mil. L'Oreal's Interest Expense for the
six
months ended in Dec. 2025 was €-185 Mil.
L'Oreal's interest coverage for the quarter that ended in Dec. 2025 was 22.47.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for L'Oreal's Interest Coverage or its related term are showing as below:
CHIX:ORp'
s Interest Coverage Range Over the Past 10 Years
Min: 22.61 Med: 76.77 Max: 128.07
Current: 24.31
CHIX:ORp's Interest Coverage is ranked better than 68.01% of 1513
companies
in the Consumer Packaged Goods industry
Industry Median: 8.61
vs CHIX:ORp: 24.31
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 .
L'Oreal Interest Coverage Related Terms
L'Oreal Interest Coverage Historical Data
* Premium members only.
The historical data trend for L'Oreal'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.
CHIX:ORP vs PG, CL, KVUE: Interest Coverage Comparison
For the Household & Personal Products subindustry, L'Oreal'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.
L'Oreal Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, L'Oreal's Interest Coverage distribution charts can be found below:
* The bar in red indicates where L'Oreal'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.
L'Oreal (CHIX:ORP) has a Interest Coverage of 22.47 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on L'Oreal and its competitors. This is 71% below median its historical median of 76.77. Over the past decade, L'Oreal's Interest Coverage has ranged from 22.61 to 128.07. According to the industry distribution chart, L'Oreal ranks #484 out of 1513 companies in the Consumer Packaged Goods industry, placing it in the top 32%.
Is L'Oreal's Interest Coverage too high?
L'Oreal's current Interest Coverage of 22.47 is 71% below median its 10-year median of 76.77. Over the past 10 years, this metric has ranged from a low of 22.61 to a high of 128.07. The Consumer Packaged Goods industry median Interest Coverage is 8.61. L'Oreal's value of 22.47 is 161% above this industry median. Based on the distribution chart, L'Oreal ranks #484 out of 1513 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, L'Oreal has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does L'Oreal's Interest Coverage compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, L'Oreal ranks #484 out of 1513 companies for Interest Coverage. This puts L'Oreal in the upper half of its industry. The industry median Interest Coverage is 8.61. L'Oreal's value of 22.47 is 161% above this benchmark. Historically, L'Oreal's own Interest Coverage has ranged from 22.61 to 128.07 over the past decade. While the company's 10-year median is 76.77 vs. the industry median of 8.61, L'Oreal 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.61, based on 1,513 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. L'Oreal's current Interest Coverage of 22.47 is 161% 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 L'Oreal and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L'Oreal's current Interest Coverage is 22.47, which is 71% below median its own 10-year median of 76.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L'Oreal stock overvalued right now?
Based on GuruFocus' analysis, L'Oreal (CHIX:ORP) is currently considered Fairly Valued. The stock's GF Value™ is €413.93, compared to a current price of €385.48 — trading 6.9% below its estimated fair value. The current Interest Coverage is 22.47, which is 71% below median its 10-year median of 76.77 and 161% above the Consumer Packaged Goods industry median of 8.61. L'Oreal's overall GF Score™ is 93/100 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 L'Oreal (CHIX:ORP), the current Interest Coverage is 22.47 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 L'Oreal (CHIX:ORP) Overvalued in 2026?
Based on GuruFocus' analysis, L'Oreal stock appears to be undervalued.
The current stock price of €385.48 is trading 6.9% below its estimated GF Value™ of €413.93.
GuruFocus considers L'Oreal to be Fairly Valued.
Key valuation signals for CHIX:ORP:
Interest Coverage: 22.47 (71% below median its 10-year median of 76.77)
GF Value™: €413.93 vs. price of €385.48 (6.9% below fair value)
Industry Position: 161% above the Consumer Packaged Goods median (#484 of 1513)
No single metric tells the full story. See the CHIX:ORP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
L'Oréal is the largest beauty product maker in the world, with consumer products (37% of sales) and luxury beauty (35%) the major segments, followed by derma skin care (16%) and professional products (12%). The firm also has a diversified geographic footprint, generating 34% of sales in Europe, 27% from North America, 23% in North Asia, and the rest from various emerging markets across South Asia, Latin America, and Africa. L'Oréal owns a mix of premium and mass beauty brands sold through a wide range of channels such as mass retail, drugstores, department stores, travel retail, e-commerce, hair salons, and medi-spas. Leading brands include Lancôme, Yves Saint Laurent, Maybelline, Kiehl's, L'Oréal Paris, Kerastase, CeraVe, Garnier, and Armani.
93GF Score
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