Toll BrothersFRA:TLK +0.32%93 Interest Coverage is 176.94 as of Apr. 2026, which is 22% below its 10-year median of 225.52. GuruFocus rates FRA:TLK with a GF Score™ of 93/100 and a GF Value™ of €117.88 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 78 Homebuilding & Construction companies, Toll Brothers ranks better than 91.03% 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. Toll Brothers's
Operating Income
for the
three
months ended in Apr. 2026 was €296 Mil. Toll Brothers's Interest Expense for the
three
months ended in Apr. 2026 was €-2 Mil.
Toll Brothers's interest coverage for the quarter that ended in Apr. 2026 was 176.94.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Toll Brothers's Interest Coverage or its related term are showing as below:
FRA:TLK'
s Interest Coverage Range Over the Past 10 Years
Min: 225.52 Med: 225.52 Max: 825.67
Current: 825.67
FRA:TLK's Interest Coverage is ranked better than 91.03% of 78
companies
in the Homebuilding & Construction industry
Industry Median: 8.305
vs FRA:TLK: 825.67
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 .
Toll Brothers Interest Coverage Related Terms
Toll Brothers Interest Coverage Historical Data
* Premium members only.
The historical data trend for Toll Brothers'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:TLK vs NVR, IBP, TMHC: Interest Coverage Comparison
For the Residential Construction subindustry, Toll Brothers'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.
Toll Brothers Interest Coverage vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Toll Brothers's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Toll Brothers'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.
Toll Brothers (FRA:TLK) has a Interest Coverage of 176.94 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Toll Brothers and its competitors. This is 22% below median its historical median of 225.52. Over the past decade, Toll Brothers' Interest Coverage has ranged from 225.52 to 825.67. According to the industry distribution chart, Toll Brothers ranks #7 out of 78 companies in the Homebuilding & Construction industry, placing it in the top 9%.
Is Toll Brothers' Interest Coverage too high?
Toll Brothers' current Interest Coverage of 176.94 is 22% below median its 10-year median of 225.52. Over the past 10 years, this metric has ranged from a low of 225.52 to a high of 825.67. The Homebuilding & Construction industry median Interest Coverage is 8.31. Toll Brothers' value of 176.94 is 2030.5% above this industry median. Based on the distribution chart, Toll Brothers ranks #7 out of 78 companies in the Homebuilding & Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Toll Brothers has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Toll Brothers' Interest Coverage compare to NVR and IBP?
According to the Homebuilding & Construction industry distribution chart, Toll Brothers ranks #7 out of 78 companies for Interest Coverage. This places Toll Brothers in the top 9% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 8.31. Toll Brothers' value of 176.94 is 2030.5% above this benchmark. Historically, Toll Brothers' own Interest Coverage has ranged from 225.52 to 825.67 over the past decade. While the company's 10-year median is 225.52 vs. the industry median of 8.31, Toll Brothers 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 Homebuilding & Construction company?
The median Interest Coverage among Homebuilding & Construction companies is 8.31, based on 78 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. Toll Brothers's current Interest Coverage of 176.94 is 2030.5% 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 Toll Brothers and its competitors. For the Homebuilding & Construction industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Toll Brothers's current Interest Coverage is 176.94, which is 22% below median its own 10-year median of 225.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Toll Brothers stock overvalued right now?
Based on GuruFocus' analysis, Toll Brothers (FRA:TLK) is currently considered Modestly Overvalued. The stock's GF Value™ is €117.88, compared to a current price of €141.40 — trading 20% above its estimated fair value. The current Interest Coverage is 176.94, which is 22% below median its 10-year median of 225.52 and 2030.5% above the Homebuilding & Construction industry median of 8.31. Toll Brothers' overall GF Score™ is 93/100 with 8 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 Toll Brothers (FRA:TLK), the current Interest Coverage is 176.94 as of Apr. 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 Toll Brothers (FRA:TLK) Overvalued in 2026?
Based on GuruFocus' analysis, Toll Brothers stock appears to be overvalued.
The current stock price of €141.40 is trading 20% above its estimated GF Value™ of €117.88.
GuruFocus considers Toll Brothers to be Modestly Overvalued.
Key valuation signals for FRA:TLK:
Interest Coverage: 176.94 (22% below median its 10-year median of 225.52)
GF Value™: €117.88 vs. price of €141.40 (20% above fair value)
Industry Position: 2030.5% above the Homebuilding & Construction median (#7 of 78)
No single metric tells the full story. See the FRA:TLK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Toll Brothers is the leading luxury homebuilder in the United States with an average sale price well above public competitors'. The company operates in over 60 markets across 24 states and caters to move-up, active-adult, and second-homebuyers. Toll Brothers consistently ranks as a top 10 builder within the US according to total home closings. Traditional homebuilding operations represent most of the company's revenue. Toll Brothers also builds luxury for-sale and for-rent properties in urban centers across the US It has its headquarters in Horsham, Pennsylvania.
93GF Score
Get the complete analysis for FRA:TLK
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:TLK has been successfully added to your 
