Knowit ABFRA:KOW -0.43%66 Interest Coverage is 5.50 as of Mar. 2026, which is 90% below its 10-year median of 53.43. GuruFocus rates FRA:KOW with a GF Score™ of 66/100 and a GF Value™ of €10.23 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,705 Software companies, Knowit AB ranks worse than 80.65% 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. Knowit AB's
Operating Income
for the
three
months ended in Mar. 2026 was €4.1 Mil. Knowit AB's Interest Expense for the
three
months ended in Mar. 2026 was €-0.7 Mil.
Knowit AB's interest coverage for the quarter that ended in Mar. 2026 was 5.50.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Knowit AB's Interest Coverage or its related term are showing as below:
FRA:KOW'
s Interest Coverage Range Over the Past 10 Years
Min: 3.64 Med: 53.43 Max: 165.53
Current: 4.23
FRA:KOW's Interest Coverage is ranked worse than 80.65% of 1705
companies
in the Software industry
Industry Median: 24.78
vs FRA:KOW: 4.23
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 .
Knowit AB Interest Coverage Related Terms
Knowit AB Interest Coverage Historical Data
* Premium members only.
The historical data trend for Knowit AB'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:KOW vs IBM, ACN, FISV: Interest Coverage Comparison
For the Information Technology Services subindustry, Knowit AB'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.
Knowit AB Interest Coverage vs Software Industry
For the Software industry and Technology sector, Knowit AB's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Knowit AB'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.
Knowit AB (FRA:KOW) has a Interest Coverage of 5.50 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Knowit AB and its competitors. This is 90% below median its historical median of 53.43. Over the past decade, Knowit AB's Interest Coverage has ranged from 3.64 to 165.53. According to the industry distribution chart, Knowit AB ranks #1375 out of 1705 companies in the Software industry, placing it in the top 80.6%.
Is Knowit AB's Interest Coverage too high?
Knowit AB's current Interest Coverage of 5.50 is 90% below median its 10-year median of 53.43. Over the past 10 years, this metric has ranged from a low of 3.64 to a high of 165.53. The Software industry median Interest Coverage is 24.78. Knowit AB's value of 5.50 is 77.8% below this industry median. Based on the distribution chart, Knowit AB ranks #1375 out of 1705 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Knowit AB has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Knowit AB's Interest Coverage compare to IBM and ACN?
According to the Software industry distribution chart, Knowit AB ranks #1375 out of 1705 companies for Interest Coverage. This places Knowit AB in the lower half of its industry. The industry median Interest Coverage is 24.78. Knowit AB's value of 5.50 is 77.8% below this benchmark. Historically, Knowit AB's own Interest Coverage has ranged from 3.64 to 165.53 over the past decade. While the company's 10-year median is 53.43 vs. the industry median of 24.78, Knowit AB 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 Software company?
The median Interest Coverage among Software companies is 24.78, based on 1,705 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. Knowit AB's current Interest Coverage of 5.50 is 77.8% 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 Knowit AB and its competitors. For the Software industry, the median Interest Coverage is 24.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knowit AB's current Interest Coverage is 5.50, which is 90% below median its own 10-year median of 53.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knowit AB stock overvalued right now?
Based on GuruFocus' analysis, Knowit AB (FRA:KOW) is currently considered Possible Value Trap. The stock's GF Value™ is €10.23, compared to a current price of €6.90 — trading 32.6% below its estimated fair value. The current Interest Coverage is 5.50, which is 90% below median its 10-year median of 53.43 and 77.8% below the Software industry median of 24.78. Knowit AB's overall GF Score™ is 66/100 with 6 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 Knowit AB (FRA:KOW), the current Interest Coverage is 5.50 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 Knowit AB (FRA:KOW) Overvalued in 2026?
Based on GuruFocus' analysis, Knowit AB stock appears to be undervalued.
The current stock price of €6.90 is trading 32.6% below its estimated GF Value™ of €10.23.
GuruFocus considers Knowit AB to be Possible Value Trap.
Key valuation signals for FRA:KOW:
Interest Coverage: 5.50 (90% below median its 10-year median of 53.43)
GF Value™: €10.23 vs. price of €6.90 (32.6% below fair value)
Industry Position: 77.8% below the Software median (#1375 of 1705)
No single metric tells the full story. See the FRA:KOW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knowit AB is a Nordic consultancy, operating three divisions: IT and system development; Customer experience technology and communications; Management consultancy. The company has about 2200 employees in 20 locations in Sweden, Norway, Denmark, Finland and Germany. Knowit provides services towards most industries, both public and private sector. Knowit AB (Publ) was founded in 1990 and is headquartered in Stockholm, Sweden.
66GF Score
Get the complete analysis for FRA:KOW
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:KOW has been successfully added to your 
