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Avis Budget GroupFRA:CUCA -11.17%75 Interest Coverage is 1.96 as of Jun. 2026, which is 32% below its 10-year median of 2.88. GuruFocus rates FRA:CUCA with a GF Score™ of 75/100 and a GF Value™ of €106.55 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 809 Business Services companies, Avis Budget Group ranks worse than 90.85% 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. Avis Budget Group's
Operating Income
for the
three
months ended in Jun. 2026 was €184 Mil. Avis Budget Group's Interest Expense for the
three
months ended in Jun. 2026 was €-94 Mil.
Avis Budget Group's interest coverage for the quarter that ended in Jun. 2026 was 1.96.
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. Avis Budget Group Inc interest coverage is 1.32, which is low.
The historical rank and industry rank for Avis Budget Group's Interest Coverage or its related term are showing as below:
FRA:CUCA'
s Interest Coverage Range Over the Past 10 Years
Min: 0.44 Med: 2.88 Max: 15.62
Current: 1.32
FRA:CUCA's Interest Coverage is ranked worse than 90.85% of 809
companies
in the Business Services industry
Industry Median: 13.22
vs FRA:CUCA: 1.32
Avis Budget Group (FRA:CUCA) 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 .
Avis Budget Group Interest Coverage Related Terms
Avis Budget Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Avis Budget Group'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.
FRA:CUCA vs HRI, EQPT, WSC: Interest Coverage Comparison
For the Rental & Leasing Services subindustry, Avis Budget Group'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.
Avis Budget Group Interest Coverage vs Business Services Industry
For the Business Services industry and Industrials sector, Avis Budget Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Avis Budget Group'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.
Avis Budget Group (FRA:CUCA) has a Interest Coverage of 1.96 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Avis Budget Group and its competitors. This is 32% below median its historical median of 2.88. Over the past decade, Avis Budget Group's Interest Coverage has ranged from 0.44 to 15.62. According to the industry distribution chart, Avis Budget Group ranks #735 out of 809 companies in the Business Services industry, placing it in the top 90.9%.
Is Avis Budget Group's Interest Coverage too high?
Avis Budget Group's current Interest Coverage of 1.96 is 32% below median its 10-year median of 2.88. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 15.62. The Business Services industry median Interest Coverage is 13.22. Avis Budget Group's value of 1.96 is 85.2% below this industry median. Based on the distribution chart, Avis Budget Group ranks #735 out of 809 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Avis Budget Group has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avis Budget Group's Interest Coverage compare to HRI and EQPT?
According to the Business Services industry distribution chart, Avis Budget Group ranks #735 out of 809 companies for Interest Coverage. This places Avis Budget Group in the lower half of its industry. The industry median Interest Coverage is 13.22. Avis Budget Group's value of 1.96 is 85.2% below this benchmark. Historically, Avis Budget Group's own Interest Coverage has ranged from 0.44 to 15.62 over the past decade. While the company's 10-year median is 2.88 vs. the industry median of 13.22, Avis Budget Group 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 Business Services company?
The median Interest Coverage among Business Services companies is 13.22, based on 809 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. Avis Budget Group's current Interest Coverage of 1.96 is 85.2% 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 Avis Budget Group and its competitors. For the Business Services industry, the median Interest Coverage is 13.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avis Budget Group's current Interest Coverage is 1.96, which is 32% below median its own 10-year median of 2.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avis Budget Group stock overvalued right now?
Based on GuruFocus' analysis, Avis Budget Group (FRA:CUCA) is currently considered Modestly Overvalued. The stock's GF Value™ is €106.55, compared to a current price of €126.80 — trading 19% above its estimated fair value. The current Interest Coverage is 1.96, which is 32% below median its 10-year median of 2.88 and 85.2% below the Business Services industry median of 13.22. Avis Budget Group's overall GF Score™ is 75/100 with 8 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 Avis Budget Group (FRA:CUCA), the current Interest Coverage is 1.96 as of Jun. 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 Avis Budget Group (FRA:CUCA) Overvalued in 2026?
Based on GuruFocus' analysis, Avis Budget Group stock appears to be overvalued.
The current stock price of €126.80 is trading 19% above its estimated GF Value™ of €106.55.
GuruFocus considers Avis Budget Group to be Modestly Overvalued.
Key valuation signals for FRA:CUCA:
Interest Coverage: 1.96 (32% below median its 10-year median of 2.88)
GF Value™: €106.55 vs. price of €126.80 (19% above fair value)
Industry Position: 85.2% below the Business Services median (#735 of 809)
No single metric tells the full story. See the FRA:CUCA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avis Budget Group Inc is a provider of mobility solutions through its three brands Avis, Budget and Zipcar, as well as several other brands, well recognized in their respective markets. Its brands offer a range of options, from car and truck rental to car sharing. The company operates in two reportable business segments: Americas - (i) vehicle rental operations in North America, South America, Central America and the Caribbean, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which do not operate directly. International - consisting of (i) vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, (ii) car sharing operations in certain of these markets, and (iii) licensees in the areas in which do not operate directly.
75GF Score
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