Pernod RicardFRA:PER +0.70%81 Interest Coverage is 6.66 as of Dec. 2025, which is 1% below its 10-year median of 6.70. GuruFocus rates FRA:PER with a GF Score™ of 81/100 and a GF Value™ of €104.21 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 159 Beverages - Alcoholic companies, Pernod Ricard ranks worse than 66.67% 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. Pernod Ricard's
Operating Income
for the
six
months ended in Dec. 2025 was €1,611 Mil. Pernod Ricard's Interest Expense for the
six
months ended in Dec. 2025 was €-242 Mil.
Pernod Ricard's interest coverage for the quarter that ended in Dec. 2025 was 6.66.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Pernod Ricard's Interest Coverage or its related term are showing as below:
FRA:PER'
s Interest Coverage Range Over the Past 10 Years
Min: 4.9 Med: 6.7 Max: 12.17
Current: 5.22
FRA:PER's Interest Coverage is ranked worse than 66.67% of 159
companies
in the Beverages - Alcoholic industry
Industry Median: 8.63
vs FRA:PER: 5.22
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 .
Pernod Ricard Interest Coverage Related Terms
Pernod Ricard Interest Coverage Historical Data
* Premium members only.
The historical data trend for Pernod Ricard'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.
For the Beverages - Wineries & Distilleries subindustry, Pernod Ricard'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.
Pernod Ricard Interest Coverage vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Pernod Ricard's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Pernod Ricard'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.
Pernod Ricard (FRA:PER) has a Interest Coverage of 6.66 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pernod Ricard and its competitors. This is near median its historical median of 6.70. Over the past decade, Pernod Ricard's Interest Coverage has ranged from 4.90 to 12.17. According to the industry distribution chart, Pernod Ricard ranks #106 out of 159 companies in the Beverages - Alcoholic industry, placing it in the top 66.7%.
Is Pernod Ricard's Interest Coverage too high?
Pernod Ricard's current Interest Coverage of 6.66 is near median its 10-year median of 6.70. Over the past 10 years, this metric has ranged from a low of 4.90 to a high of 12.17. The Beverages - Alcoholic industry median Interest Coverage is 8.63. Pernod Ricard's value of 6.66 is 22.8% below this industry median. Based on the distribution chart, Pernod Ricard ranks #106 out of 159 companies in the Beverages - Alcoholic industry, which is below the industry midpoint. Overall, Pernod Ricard has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Pernod Ricard's Interest Coverage compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Pernod Ricard ranks #106 out of 159 companies for Interest Coverage. This places Pernod Ricard in the lower half of its industry. The industry median Interest Coverage is 8.63. Pernod Ricard's value of 6.66 is 22.8% below this benchmark. Historically, Pernod Ricard's own Interest Coverage has ranged from 4.90 to 12.17 over the past decade. While the company's 10-year median is 6.70 vs. the industry median of 8.63, Pernod Ricard 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 Beverages - Alcoholic company?
The median Interest Coverage among Beverages - Alcoholic companies is 8.63, based on 159 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. Pernod Ricard's current Interest Coverage of 6.66 is 22.8% 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 Pernod Ricard and its competitors. For the Beverages - Alcoholic industry, the median Interest Coverage is 8.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pernod Ricard's current Interest Coverage is 6.66, which is near median its own 10-year median of 6.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pernod Ricard stock overvalued right now?
Based on GuruFocus' analysis, Pernod Ricard (FRA:PER) is currently considered Possible Value Trap. The stock's GF Value™ is €104.21, compared to a current price of €66.14 — trading 36.5% below its estimated fair value. The current Interest Coverage is 6.66, which is near median its 10-year median of 6.70 and 22.8% below the Beverages - Alcoholic industry median of 8.63. Pernod Ricard's overall GF Score™ is 81/100 with 5 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 Pernod Ricard (FRA:PER), the current Interest Coverage is 6.66 as of Dec. 2025. 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 Pernod Ricard (FRA:PER) Overvalued in 2026?
Based on GuruFocus' analysis, Pernod Ricard stock appears to be undervalued.
The current stock price of €66.14 is trading 36.5% below its estimated GF Value™ of €104.21.
GuruFocus considers Pernod Ricard to be Possible Value Trap.
Key valuation signals for FRA:PER:
Interest Coverage: 6.66 (near median its 10-year median of 6.70)
GF Value™: €104.21 vs. price of €66.14 (36.5% below fair value)
Industry Position: 22.8% below the Beverages - Alcoholic median (#106 of 159)
No single metric tells the full story. See the FRA:PER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pernod Ricard was formed in 1975 through the merger of Pernod, founded in 1805, and Ricard, created in 1932. Through acquisitions, the firm has grown to become the world's second-largest distiller by volume, behind Diageo. Pernod Ricard possesses the most comprehensive spirits portfolio globally, distributing over 240 brands across 160 countries. Flagship spirits brands include Absolut vodka, Beefeater gin, Chivas Regal and The Glenlivet scotch whisky, Jameson Irish whiskey, Malibu rum, and Martell cognac. The firm has also shed noncore assets over the years, including several wine brands in 2025.
81GF Score
Get the complete analysis for FRA:PER
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