Tongcheng Travel HoldingsFRA:TEM -4.29%77 Interest Coverage is 17.14 as of Mar. 2026, which is 31% above its 10-year median of 13.10. GuruFocus rates FRA:TEM with a GF Score™ of 77/100 and a GF Value™ of €2.76 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 611 Travel & Leisure companies, Tongcheng Travel Holdings ranks better than 68.58% 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. Tongcheng Travel Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was €121 Mil. Tongcheng Travel Holdings's Interest Expense for the
three
months ended in Mar. 2026 was €-7 Mil.
Tongcheng Travel Holdings's interest coverage for the quarter that ended in Mar. 2026 was 17.14.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Tongcheng Travel Holdings's Interest Coverage or its related term are showing as below:
FRA:TEM'
s Interest Coverage Range Over the Past 10 Years
Min: 0.09 Med: 13.1 Max: 79.79
Current: 16.36
FRA:TEM's Interest Coverage is ranked better than 68.58% of 611
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs FRA:TEM: 16.36
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 .
Tongcheng Travel Holdings Interest Coverage Related Terms
Tongcheng Travel Holdings Interest Coverage Historical Data
* 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:TEM vs BKNG, ABNB, RCL: Interest Coverage Comparison
For the Travel Services subindustry, Tongcheng Travel Holdings'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.
Tongcheng Travel Holdings Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Tongcheng Travel Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Tongcheng Travel Holdings'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.
Tongcheng Travel Holdings (FRA:TEM) has a Interest Coverage of 17.14 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Tongcheng Travel Holdings and its competitors. This is 31% above median its historical median of 13.10. Over the past decade, Tongcheng Travel Holdings' Interest Coverage has ranged from 0.09 to 79.79. According to the industry distribution chart, Tongcheng Travel Holdings ranks #192 out of 611 companies in the Travel & Leisure industry, placing it in the top 31.4%.
Is Tongcheng Travel Holdings' Interest Coverage too high?
Tongcheng Travel Holdings' current Interest Coverage of 17.14 is 31% above median its 10-year median of 13.10. Over the past 10 years, this metric has ranged from a low of 0.09 to a high of 79.79. The Travel & Leisure industry median Interest Coverage is 5.35. Tongcheng Travel Holdings' value of 17.14 is 220.4% above this industry median. Based on the distribution chart, Tongcheng Travel Holdings ranks #192 out of 611 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Tongcheng Travel Holdings has a GF Score™ of 77/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tongcheng Travel Holdings' Interest Coverage compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Tongcheng Travel Holdings ranks #192 out of 611 companies for Interest Coverage. This puts Tongcheng Travel Holdings in the upper half of its industry. The industry median Interest Coverage is 5.35. Tongcheng Travel Holdings' value of 17.14 is 220.4% above this benchmark. Historically, Tongcheng Travel Holdings' own Interest Coverage has ranged from 0.09 to 79.79 over the past decade. While the company's 10-year median is 13.10 vs. the industry median of 5.35, Tongcheng Travel Holdings has consistently been above 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 611 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. Tongcheng Travel Holdings's current Interest Coverage of 17.14 is 220.4% above 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 Tongcheng Travel Holdings 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. Tongcheng Travel Holdings's current Interest Coverage is 17.14, which is 31% above median its own 10-year median of 13.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongcheng Travel Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tongcheng Travel Holdings (FRA:TEM) is currently considered Possible Value Trap. The stock's GF Value™ is €2.76, compared to a current price of €1.34 — trading 51.4% below its estimated fair value. The current Interest Coverage is 17.14, which is 31% above median its 10-year median of 13.10 and 220.4% above the Travel & Leisure industry median of 5.35. Tongcheng Travel Holdings' overall GF Score™ is 77/100 with 3 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 Tongcheng Travel Holdings (FRA:TEM), the current Interest Coverage is 17.14 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 Tongcheng Travel Holdings (FRA:TEM) Overvalued in 2026?
Based on GuruFocus' analysis, Tongcheng Travel Holdings stock appears to be undervalued.
The current stock price of €1.34 is trading 51.4% below its estimated GF Value™ of €2.76.
GuruFocus considers Tongcheng Travel Holdings to be Possible Value Trap.
Key valuation signals for FRA:TEM:
Interest Coverage: 17.14 (31% above median its 10-year median of 13.10)
GF Value™: €2.76 vs. price of €1.34 (51.4% below fair value)
Industry Position: 220.4% above the Travel & Leisure median (#192 of 611)
No single metric tells the full story. See the FRA:TEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongcheng Travel is an online travel agency platform that provides booking services for hotel and ticketing in China. It generated 84% of its revenue from accommodation reservations and transportation ticketing in 2023. The rest came from advertising and in-house software sales. The platform provides both online and offline services in the form of call centers and travel kiosks. Tongcheng Travel was formed from the merger of Tongcheng Network and eLong in 2018. It is currently 21.38% owned by Tencent and 20.86% by Trip.com. Tongcheng targets lower-tier cities and as of 2021, 86.7% of its users are from non-first-tier cities in China and 61.7% of new paying users on Weixin were from Tier 3 or below cities in China. The company competes with Trip.com, Alibaba's Fliggy, and Meituan.
77GF Score
Get the complete analysis for FRA:TEM
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