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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. Lai Sun Development Co's
Operating Income
for the
six
months ended in Jan. 2026 was €-22.5 Mil. Lai Sun Development Co's Interest Expense for the
six
months ended in Jan. 2026 was €-53.4 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Lai Sun Development Co's Interest Coverage or its related term are showing as below:
FRA:LAY3's Interest Coverage is not ranked *
in the Real Estate industry.
Industry Median: 4.28 * Ranked among companies with meaningful Interest Coverage only.
Lai Sun Development Co (FRA:LAY3) 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 .
Lai Sun Development Co Interest Coverage Related Terms
Lai Sun Development Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Lai Sun Development Co'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.
Lai Sun Development Co Interest Coverage Competitor Comparison
For the Real Estate - Diversified subindustry, Lai Sun Development 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.
Lai Sun Development Co Interest Coverage vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Lai Sun Development Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Lai Sun Development Co's Interest Coverage falls into.
Lai Sun Development 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:
Lai Sun Development Co did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Lai Sun Development Co (FRA:LAY3) has a Interest Coverage of 0 (At Loss) as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Lai Sun Development Co and its competitors. According to the industry distribution chart, Lai Sun Development Co ranks #999999 out of 1307 companies in the Real Estate industry.
Is Lai Sun Development Co's Interest Coverage too high?
Lai Sun Development Co's current Interest Coverage is 0 (At Loss). Based on the distribution chart, Lai Sun Development Co ranks #999999 out of 1307 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Lai Sun Development Co has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Lai Sun Development Co's Interest Coverage compare to competitors?
According to the Real Estate industry distribution chart, Lai Sun Development Co ranks #999999 out of 1307 companies for Interest Coverage. This places Lai Sun Development Co in the lower half of its industry. The industry median Interest Coverage is 4.28. 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 Real Estate company?
The median Interest Coverage among Real Estate companies is 4.28, based on 1,307 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. 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 Lai Sun Development Co and its competitors. For the Real Estate industry, the median Interest Coverage is 4.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lai Sun Development Co's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lai Sun Development Co stock overvalued right now?
Lai Sun Development Co (FRA:LAY3) has a current Interest Coverage of 0 (At Loss). The stock's GF Value™ is €0.06, compared to a current price of €0.08 — trading 31.7% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Lai Sun Development Co's overall GF Score™ is 34/100 with 4 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 Lai Sun Development Co (FRA:LAY3), the current Interest Coverage is 0 (At Loss) as of Jan. 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 Lai Sun Development Co (FRA:LAY3) Overvalued in 2026?
Based on GuruFocus' analysis, Lai Sun Development Co stock appears to be overvalued.
The current stock price of €0.08 is trading 31.7% above its estimated GF Value™ of €0.06.
Key valuation signals for FRA:LAY3:
Interest Coverage: 0 (At Loss)
GF Value™: €0.06 vs. price of €0.08 (31.7% above fair value)
No single metric tells the full story. See the FRA:LAY3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lai Sun Development Co Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in various reportable operating segments such as; property development and sales; property investment; hotel operation; restaurant operation; media and entertainment; film and TV programs; cinema operation; theme park operation, and others. The property development and sales segment which derives a majority of its revenue, is engaged in property development and the sale of properties. Geographically, it derives a majority of its revenue from Mainland China and Macau, and the rest from Hong Kong, the United Kingdom, Vietnam, and other regions.
34GF Score
Get the complete analysis for FRA:LAY3
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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