Hilton Grand VacationsFRA:HIE -2.56%81 Interest Coverage is 2.12 as of Mar. 2026, which is 57% below its 10-year median of 4.89. GuruFocus rates FRA:HIE with a GF Score™ of 81/100 and a GF Value™ of €49.52 (Fairly Valued). The stock has 8 warning signs investors should review. Among 609 Travel & Leisure companies, Hilton Grand Vacations ranks worse than 73.73% 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. Hilton Grand Vacations's
Operating Income
for the
three
months ended in Mar. 2026 was €134 Mil. Hilton Grand Vacations's Interest Expense for the
three
months ended in Mar. 2026 was €-63 Mil.
Hilton Grand Vacations's interest coverage for the quarter that ended in Mar. 2026 was 2.12.
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. Hilton Grand Vacations Inc interest coverage is 2.35, which is low.
The historical rank and industry rank for Hilton Grand Vacations's Interest Coverage or its related term are showing as below:
FRA:HIE'
s Interest Coverage Range Over the Past 10 Years
Min: 2.1 Med: 4.89 Max: 14.47
Current: 2.35
FRA:HIE's Interest Coverage is ranked worse than 73.73% of 609
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs FRA:HIE: 2.35
Hilton Grand Vacations (FRA:HIE) 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 .
Hilton Grand Vacations Interest Coverage Related Terms
Hilton Grand Vacations Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hilton Grand Vacations'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:HIE vs RRR, MTN, VAC: Interest Coverage Comparison
For the Resorts & Casinos subindustry, Hilton Grand Vacations'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.
Hilton Grand Vacations Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Grand Vacations's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hilton Grand Vacations's Interest Coverage falls into.
Hilton Grand Vacations 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.
Hilton Grand Vacations (FRA:HIE) has a Interest Coverage of 2.12 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hilton Grand Vacations and its competitors. This is 57% below median its historical median of 4.89. Over the past decade, Hilton Grand Vacations' Interest Coverage has ranged from 2.10 to 14.47. According to the industry distribution chart, Hilton Grand Vacations ranks #449 out of 609 companies in the Travel & Leisure industry, placing it in the top 73.7%.
Is Hilton Grand Vacations' Interest Coverage too high?
Hilton Grand Vacations' current Interest Coverage of 2.12 is 57% below median its 10-year median of 4.89. Over the past 10 years, this metric has ranged from a low of 2.10 to a high of 14.47. The Travel & Leisure industry median Interest Coverage is 5.35. Hilton Grand Vacations' value of 2.12 is 60.4% below this industry median. Based on the distribution chart, Hilton Grand Vacations ranks #449 out of 609 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Hilton Grand Vacations has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hilton Grand Vacations' Interest Coverage compare to RRR and MTN?
According to the Travel & Leisure industry distribution chart, Hilton Grand Vacations ranks #449 out of 609 companies for Interest Coverage. This places Hilton Grand Vacations in the lower half of its industry. The industry median Interest Coverage is 5.35. Hilton Grand Vacations' value of 2.12 is 60.4% below this benchmark. Historically, Hilton Grand Vacations' own Interest Coverage has ranged from 2.10 to 14.47 over the past decade. While the company's 10-year median is 4.89 vs. the industry median of 5.35, Hilton Grand Vacations 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 Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 609 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. Hilton Grand Vacations's current Interest Coverage of 2.12 is 60.4% 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 Hilton Grand Vacations and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hilton Grand Vacations's current Interest Coverage is 2.12, which is 57% below median its own 10-year median of 4.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hilton Grand Vacations stock overvalued right now?
Based on GuruFocus' analysis, Hilton Grand Vacations (FRA:HIE) is currently considered Fairly Valued. The stock's GF Value™ is €49.52, compared to a current price of €45.60 — trading 7.9% below its estimated fair value. The current Interest Coverage is 2.12, which is 57% below median its 10-year median of 4.89 and 60.4% below the Travel & Leisure industry median of 5.35. Hilton Grand Vacations' overall GF Score™ is 81/100 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 Hilton Grand Vacations (FRA:HIE), the current Interest Coverage is 2.12 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 Hilton Grand Vacations (FRA:HIE) Overvalued in 2026?
Based on GuruFocus' analysis, Hilton Grand Vacations stock appears to be undervalued.
The current stock price of €45.60 is trading 7.9% below its estimated GF Value™ of €49.52.
GuruFocus considers Hilton Grand Vacations to be Fairly Valued.
Key valuation signals for FRA:HIE:
Interest Coverage: 2.12 (57% below median its 10-year median of 4.89)
GF Value™: €49.52 vs. price of €45.60 (7.9% below fair value)
Industry Position: 60.4% below the Travel & Leisure median (#449 of 609)
No single metric tells the full story. See the FRA:HIE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hilton Grand Vacations Inc is a timeshare company engaged in developing, marketing, selling, managing, and operating timeshare resorts and timeshare plans under the Hilton Grand Vacations brand. The company operates in two segments: Real estate sales and financing, and Resort operations and club management. The Real estate sales and financing segment generates revenue from VOI sales and consumer financing, including interest income from loans to members. The Resort operations and club management segment generates revenue from resort management services, club membership fees, and rental of available inventory. The majority of the company's revenue is earned through the Real estate sales and financing segment.
81GF Score
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