Treasury Wine EstatesFRA:T7W -1.30%55 Interest Coverage is 0.71 as of Dec. 2025, which is 64% below its 10-year median of 1.95. GuruFocus rates FRA:T7W with a GF Score™ of 55/100 and a GF Value™ of €6.17 (Possible Value Trap). The stock has 10 warning signs investors should review. Among 159 Beverages - Alcoholic companies, Treasury Wine Estates ranks worse than 93.08% 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. Treasury Wine Estates's
Operating Income
for the
six
months ended in Dec. 2025 was €45 Mil. Treasury Wine Estates's Interest Expense for the
six
months ended in Dec. 2025 was €-63 Mil.
Treasury Wine Estates's interest coverage for the quarter that ended in Dec. 2025 was 0.71.
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. Treasury Wine Estates Ltd interest coverage is 1.42, which is low.
The historical rank and industry rank for Treasury Wine Estates's Interest Coverage or its related term are showing as below:
FRA:T7W'
s Interest Coverage Range Over the Past 10 Years
Min: 0.21 Med: 1.95 Max: 5.58
Current: 1.42
FRA:T7W's Interest Coverage is ranked worse than 93.08% of 159
companies
in the Beverages - Alcoholic industry
Industry Median: 8.63
vs FRA:T7W: 1.42
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 .
Treasury Wine Estates Interest Coverage Related Terms
Treasury Wine Estates Interest Coverage Historical Data
* Premium members only.
The historical data trend for Treasury Wine Estates'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, Treasury Wine Estates'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.
Treasury Wine Estates Interest Coverage vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Treasury Wine Estates's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Treasury Wine Estates'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.
Treasury Wine Estates (FRA:T7W) has a Interest Coverage of 0.71 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Treasury Wine Estates and its competitors. This is 64% below median its historical median of 1.95. Over the past decade, Treasury Wine Estates' Interest Coverage has ranged from 0.21 to 5.58. According to the industry distribution chart, Treasury Wine Estates ranks #148 out of 159 companies in the Beverages - Alcoholic industry, placing it in the top 93.1%.
Is Treasury Wine Estates' Interest Coverage too high?
Treasury Wine Estates' current Interest Coverage of 0.71 is 64% below median its 10-year median of 1.95. Over the past 10 years, this metric has ranged from a low of 0.21 to a high of 5.58. The Beverages - Alcoholic industry median Interest Coverage is 8.63. Treasury Wine Estates' value of 0.71 is 91.8% below this industry median. Based on the distribution chart, Treasury Wine Estates ranks #148 out of 159 companies in the Beverages - Alcoholic industry, which is in the bottom quartile relative to peers. Overall, Treasury Wine Estates has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Treasury Wine Estates' Interest Coverage compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Treasury Wine Estates ranks #148 out of 159 companies for Interest Coverage. This places Treasury Wine Estates in the lower half of its industry. The industry median Interest Coverage is 8.63. Treasury Wine Estates' value of 0.71 is 91.8% below this benchmark. Historically, Treasury Wine Estates' own Interest Coverage has ranged from 0.21 to 5.58 over the past decade. While the company's 10-year median is 1.95 vs. the industry median of 8.63, Treasury Wine Estates 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. Treasury Wine Estates's current Interest Coverage of 0.71 is 91.8% 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 Treasury Wine Estates 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. Treasury Wine Estates's current Interest Coverage is 0.71, which is 64% below median its own 10-year median of 1.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Treasury Wine Estates stock overvalued right now?
Based on GuruFocus' analysis, Treasury Wine Estates (FRA:T7W) is currently considered Possible Value Trap. The stock's GF Value™ is €6.17, compared to a current price of €2.77 — trading 55.1% below its estimated fair value. The current Interest Coverage is 0.71, which is 64% below median its 10-year median of 1.95 and 91.8% below the Beverages - Alcoholic industry median of 8.63. Treasury Wine Estates' overall GF Score™ is 55/100 with 10 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 Treasury Wine Estates (FRA:T7W), the current Interest Coverage is 0.71 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 Treasury Wine Estates (FRA:T7W) Overvalued in 2026?
Based on GuruFocus' analysis, Treasury Wine Estates stock appears to be undervalued.
The current stock price of €2.77 is trading 55.1% below its estimated GF Value™ of €6.17.
GuruFocus considers Treasury Wine Estates to be Possible Value Trap.
Key valuation signals for FRA:T7W:
Interest Coverage: 0.71 (64% below median its 10-year median of 1.95)
GF Value™: €6.17 vs. price of €2.77 (55.1% below fair value)
Industry Position: 91.8% below the Beverages - Alcoholic median (#148 of 159)
No single metric tells the full story. See the FRA:T7W stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Treasury Wine Estates is an Australia-based global wine company that demerged from Foster's Group in 2011. The company is among the world's top five wine producers, and owns a portfolio that includes Australian labels such as Penfolds and Wolf Blass, US wines like Chateau St Jean and Sterling, and newly launched names such as 19 Crimes and Maison de Grand Esprit. An acquisition of Diageo's wine business in 2016 added additional US brands including BV and Stags' Leap. Treasury owns over 130 wineries, with more than 13,000 planted hectares.
55GF Score
Get the complete analysis for FRA:T7W
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