Investment AB Latour (FRA:18LB) Interest Coverage: 5.68 (As of Mar. 2026) — 74% Below Median


FRA:18LB Investment AB Latour FRA:18LB
84 GF Score
Price €17.34
GF Value €24.37
Valuation Modestly Undervalued
! 2 Warning Signs
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What is Investment AB Latour Interest Coverage?

Investment AB Latour FRA:18LB -0.74% 84 Interest Coverage is 5.68 as of Mar. 2026, which is 74% below its 10-year median of 22.24. GuruFocus rates FRA:18LB with a GF Score™ of 84/100 and a GF Value™ of €24.37 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 426 Conglomerates companies, Investment AB Latour ranks worse than 56.81% 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. Investment AB Latour's Operating Income for the three months ended in Mar. 2026 was €77 Mil. Investment AB Latour's Interest Expense for the three months ended in Mar. 2026 was €-14 Mil. Investment AB Latour's interest coverage for the quarter that ended in Mar. 2026 was 5.68. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Investment AB Latour's Interest Coverage or its related term are showing as below:

FRA:18LB' s Interest Coverage Range Over the Past 10 Years
Min: 4.52   Med: 22.24   Max: 35.5
Current: 4.52


FRA:18LB's Interest Coverage is ranked worse than
56.81% of 426 companies
in the Conglomerates industry
Industry Median: 5.335 vs FRA:18LB: 4.52

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Investment AB Latour  (FRA:18LB) 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 .


Investment AB Latour Interest Coverage Related Terms


Investment AB Latour Interest Coverage Historical Data

* Premium members only.

The historical data trend for Investment AB Latour'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.

Investment AB Latour Interest Coverage Chart

Investment AB Latour Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 35.50 29.35 9.75 7.99 6.47

Investment AB Latour Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.43 3.66 4.30 4.78 5.68

FRA:18LB vs HON, MMM: Interest Coverage Comparison

For the Conglomerates subindustry, Investment AB Latour'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.


Investment AB Latour Interest Coverage vs Conglomerates Industry

For the Conglomerates industry and Industrials sector, Investment AB Latour's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Investment AB Latour's Interest Coverage falls into.


FRA:18LB
84GF Score
Investment AB Latour FRA:18LB
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Investment AB Latour 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Investment AB Latour's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Investment AB Latour's Interest Expense was €-51 Mil. Its Operating Income was €331 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,231 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*331.088/-51.184
=6.47

Investment AB Latour's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Investment AB Latour's Interest Expense was €-14 Mil. Its Operating Income was €77 Mil. And its Long-Term Debt & Capital Lease Obligation was €1,509 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*76.964/-13.555
=5.68

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 5.68 mean?
Investment AB Latour (FRA:18LB) has a Interest Coverage of 5.68 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Investment AB Latour and its competitors. This is 74% below median its historical median of 22.24. Over the past decade, Investment AB Latour's Interest Coverage has ranged from 4.52 to 35.50. According to the industry distribution chart, Investment AB Latour ranks #242 out of 426 companies in the Conglomerates industry, placing it in the top 56.8%.
Is Investment AB Latour's Interest Coverage too high?
Investment AB Latour's current Interest Coverage of 5.68 is 74% below median its 10-year median of 22.24. Over the past 10 years, this metric has ranged from a low of 4.52 to a high of 35.50. The Conglomerates industry median Interest Coverage is 5.34. Investment AB Latour's value of 5.68 is 6.5% above this industry median. Based on the distribution chart, Investment AB Latour ranks #242 out of 426 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Investment AB Latour has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Investment AB Latour's Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, Investment AB Latour ranks #242 out of 426 companies for Interest Coverage. This places Investment AB Latour in the lower half of its industry. The industry median Interest Coverage is 5.34. Investment AB Latour's value of 5.68 is 6.5% above this benchmark. Historically, Investment AB Latour's own Interest Coverage has ranged from 4.52 to 35.50 over the past decade. While the company's 10-year median is 22.24 vs. the industry median of 5.34, Investment AB Latour 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 Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.34, based on 426 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. Investment AB Latour's current Interest Coverage of 5.68 is 6.5% 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 Investment AB Latour and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Investment AB Latour's current Interest Coverage is 5.68, which is 74% below median its own 10-year median of 22.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Investment AB Latour stock overvalued right now?
Based on GuruFocus' analysis, Investment AB Latour (FRA:18LB) is currently considered Modestly Undervalued. The stock's GF Value™ is €24.37, compared to a current price of €17.34 — trading 28.8% below its estimated fair value. The current Interest Coverage is 5.68, which is 74% below median its 10-year median of 22.24 and 6.5% above the Conglomerates industry median of 5.34. Investment AB Latour's overall GF Score™ is 84/100 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 Investment AB Latour (FRA:18LB), the current Interest Coverage is 5.68 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 Investment AB Latour (FRA:18LB) Overvalued in 2026?

Based on GuruFocus' analysis, Investment AB Latour stock appears to be undervalued. The current stock price of €17.34 is trading 28.8% below its estimated GF Value™ of €24.37. GuruFocus considers Investment AB Latour to be Modestly Undervalued.

Key valuation signals for FRA:18LB:

  • Interest Coverage: 5.68 (74% below median its 10-year median of 22.24)
  • GF Value™: €24.37 vs. price of €17.34 (28.8% below fair value)
  • GF Score™: 84/100 with 2 warning signs
  • Industry Position: 6.5% above the Conglomerates median (#242 of 426)

No single metric tells the full story. See the FRA:18LB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Investment AB Latour Business Description

Address J A Wettergrens Gata 7, P.O. Box 336, Gothenburg, SWE, 401 25
Investment AB Latour is an investment holding company that makes investments in wholly owned industrial operations and a portfolio of securities. Latour has a long-term and activist orientation, with the vast majority of its total net asset value deriving from companies that have been in its portfolio for more than 20 years. The company measures its performance against its benchmark, the Stockholm Stock Exchange's total return index. Its criterion is to invest in companies that have their own products that meet growing international demand. Latour specifically evaluates four trends: demographic development, sustainability, globalization, and competition for limited resources.
84GF Score

Get the complete analysis for FRA:18LB

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€17.34
Price
€24.37
GF Value