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. British American Tobacco Bangladesh Co's
Operating Income
for the
three
months ended in Mar. 2026 was BDT5,437 Mil. British American Tobacco Bangladesh Co's Interest Expense for the
three
months ended in Mar. 2026 was BDT-502 Mil.
British American Tobacco Bangladesh Co's interest coverage for the quarter that ended in Mar. 2026 was 10.83.
The higher the ratio, the stronger the company's financial strength is.
British American Tobacco Bangladesh Co (DHA:BATBC) 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 .
British American Tobacco Bangladesh Co Interest Coverage Related Terms
British American Tobacco Bangladesh Co Interest Coverage Historical Data
* 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.
British American Tobacco Bangladesh Co Interest Coverage Chart
British American Tobacco Bangladesh Co Annual Data
DHA:BATBC vs PM, MO, TPB: Interest Coverage Comparison
For the Tobacco subindustry, British American Tobacco Bangladesh Co'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.
British American Tobacco Bangladesh Co Interest Coverage vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco Bangladesh Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where British American Tobacco Bangladesh Co's Interest Coverage falls into.
British American Tobacco Bangladesh Co 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:
* 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.
British American Tobacco Bangladesh Co (DHA:BATBC) has a Interest Coverage of 10.83 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on British American Tobacco Bangladesh Co and its competitors. This is 81% below median its historical median of 58.37. Over the past decade, British American Tobacco Bangladesh Co's Interest Coverage has ranged from 10.90 to 262.07. According to the industry distribution chart, British American Tobacco Bangladesh Co ranks #18 out of 35 companies in the Tobacco Products industry, placing it in the top 51.4%.
Is British American Tobacco Bangladesh Co's Interest Coverage too high?
British American Tobacco Bangladesh Co's current Interest Coverage of 10.83 is 81% below median its 10-year median of 58.37. Over the past 10 years, this metric has ranged from a low of 10.90 to a high of 262.07. The Tobacco Products industry median Interest Coverage is 10.90. British American Tobacco Bangladesh Co's value of 10.83 is 0.6% below this industry median. Based on the distribution chart, British American Tobacco Bangladesh Co ranks #18 out of 35 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, British American Tobacco Bangladesh Co has a GF Score™ of 85/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does British American Tobacco Bangladesh Co's Interest Coverage compare to PM and MO?
According to the Tobacco Products industry distribution chart, British American Tobacco Bangladesh Co ranks #18 out of 35 companies for Interest Coverage. This places British American Tobacco Bangladesh Co in the lower half of its industry. The industry median Interest Coverage is 10.90. British American Tobacco Bangladesh Co's value of 10.83 is 0.6% below this benchmark. Historically, British American Tobacco Bangladesh Co's own Interest Coverage has ranged from 10.90 to 262.07 over the past decade. While the company's 10-year median is 58.37 vs. the industry median of 10.90, British American Tobacco Bangladesh Co 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 Tobacco Products company?
The median Interest Coverage among Tobacco Products companies is 10.90, based on 35 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. British American Tobacco Bangladesh Co's current Interest Coverage of 10.83 is 0.6% 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 British American Tobacco Bangladesh Co and its competitors. For the Tobacco Products industry, the median Interest Coverage is 10.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. British American Tobacco Bangladesh Co's current Interest Coverage is 10.83, which is 81% below median its own 10-year median of 58.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is British American Tobacco Bangladesh Co stock overvalued right now?
Based on GuruFocus' analysis, British American Tobacco Bangladesh Co (DHA:BATBC) is currently considered Possible Value Trap. The stock's GF Value™ is BDT309.31, compared to a current price of BDT217.50 — trading 29.7% below its estimated fair value. The current Interest Coverage is 10.83, which is 81% below median its 10-year median of 58.37 and 0.6% below the Tobacco Products industry median of 10.90. British American Tobacco Bangladesh Co's overall GF Score™ is 85/100 with 9 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 British American Tobacco Bangladesh Co (DHA:BATBC), the current Interest Coverage is 10.83 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 British American Tobacco Bangladesh Co (DHA:BATBC) Overvalued in 2026?
Based on GuruFocus' analysis, British American Tobacco Bangladesh Co stock appears to be undervalued.
The current stock price of BDT217.50 is trading 29.7% below its estimated GF Value™ of BDT309.31.
GuruFocus considers British American Tobacco Bangladesh Co to be Possible Value Trap.
Key valuation signals for DHA:BATBC:
Interest Coverage: 10.83 (81% below median its 10-year median of 58.37)
GF Value™: BDT309.31 vs. price of BDT217.50 (29.7% below fair value)
Industry Position: 0.6% below the Tobacco Products median (#18 of 35)
No single metric tells the full story. See the DHA:BATBC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
British American Tobacco Bangladesh Co Business Description
British American Tobacco Bangladesh Co Ltd is engaged in the manufacturing and marketing of cigarettes in Bangladesh. It manufactures and markets brands including Benson & Hedges, John Player Gold Leaf, John Player Series, Capstan, Lucky Strike, Star, Royals, Derby, Pilot, and Hollywood.
85GF Score
Get the complete analysis for DHA:BATBC
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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