VTech HoldingsFRA:VTCB 81 Interest Coverage is 101.12 as of Mar. 2026, which is 152% above its 10-year median of 40.18. GuruFocus rates FRA:VTCB with a GF Score™ of 81/100 and a GF Value™ of €5.57 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,672 Hardware companies, VTech Holdings ranks better than 69.56% 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. VTech Holdings's
Operating Income
for the
six
months ended in Mar. 2026 was €70 Mil. VTech Holdings's Interest Expense for the
six
months ended in Mar. 2026 was €-1 Mil.
VTech Holdings's interest coverage for the quarter that ended in Mar. 2026 was 101.12.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for VTech Holdings's Interest Coverage or its related term are showing as below:
FRA:VTCB'
s Interest Coverage Range Over the Past 10 Years
Min: 15.07 Med: 40.18 Max: 757.13
Current: 43.24
FRA:VTCB's Interest Coverage is ranked better than 69.56% of 1672
companies
in the Hardware industry
Industry Median: 13.73
vs FRA:VTCB: 43.24
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 .
VTech Holdings Interest Coverage Related Terms
VTech Holdings Interest Coverage Historical Data
* Premium members only.
The historical data trend for VTech Holdings'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:VTCB vs CSCO, CIEN, MSI: Interest Coverage Comparison
For the Communication Equipment subindustry, VTech 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.
VTech Holdings Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, VTech Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where VTech 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.
VTech Holdings (FRA:VTCB) has a Interest Coverage of 101.12 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on VTech Holdings and its competitors. This is 152% above median its historical median of 40.18. Over the past decade, VTech Holdings' Interest Coverage has ranged from 15.07 to 757.13. According to the industry distribution chart, VTech Holdings ranks #509 out of 1672 companies in the Hardware industry, placing it in the top 30.4%.
Is VTech Holdings' Interest Coverage too high?
VTech Holdings' current Interest Coverage of 101.12 is 152% above median its 10-year median of 40.18. Over the past 10 years, this metric has ranged from a low of 15.07 to a high of 757.13. The Hardware industry median Interest Coverage is 13.73. VTech Holdings' value of 101.12 is 636.5% above this industry median. Based on the distribution chart, VTech Holdings ranks #509 out of 1672 companies in the Hardware industry, which is above the industry midpoint. Overall, VTech Holdings has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does VTech Holdings' Interest Coverage compare to CSCO and CIEN?
According to the Hardware industry distribution chart, VTech Holdings ranks #509 out of 1672 companies for Interest Coverage. This puts VTech Holdings in the upper half of its industry. The industry median Interest Coverage is 13.73. VTech Holdings' value of 101.12 is 636.5% above this benchmark. Historically, VTech Holdings' own Interest Coverage has ranged from 15.07 to 757.13 over the past decade. While the company's 10-year median is 40.18 vs. the industry median of 13.73, VTech 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,672 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. VTech Holdings's current Interest Coverage of 101.12 is 636.5% 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 VTech Holdings and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VTech Holdings's current Interest Coverage is 101.12, which is 152% above median its own 10-year median of 40.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VTech Holdings stock overvalued right now?
Based on GuruFocus' analysis, VTech Holdings (FRA:VTCB) is currently considered Fairly Valued. The stock's GF Value™ is €5.57, compared to a current price of €5.60 — trading 0.5% above its estimated fair value. The current Interest Coverage is 101.12, which is 152% above median its 10-year median of 40.18 and 636.5% above the Hardware industry median of 13.73. VTech Holdings' overall GF Score™ is 81/100 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 VTech Holdings (FRA:VTCB), the current Interest Coverage is 101.12 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 VTech Holdings (FRA:VTCB) Overvalued in 2026?
Based on GuruFocus' analysis, VTech Holdings stock appears to be overvalued.
The current stock price of €5.60 is trading 0.5% above its estimated GF Value™ of €5.57.
GuruFocus considers VTech Holdings to be Fairly Valued.
Key valuation signals for FRA:VTCB:
Interest Coverage: 101.12 (152% above median its 10-year median of 40.18)
GF Value™: €5.57 vs. price of €5.60 (0.5% above fair value)
Industry Position: 636.5% above the Hardware median (#509 of 1672)
No single metric tells the full story. See the FRA:VTCB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
VTech Holdings Ltd is engaged in the designing, manufacturing, and distribution of consumer electronic products. It also provides contract manufacturing services. The company's diverse collection of products includes Telephone Products, Business Phones, Electronic Learning Toys, Baby Monitors, and Hospitality Products. In addition, it offers turnkey services to customers in several product categories. The company operates through four reportable segments: North America, (including the United States and Canada), Europe, Asia Pacific, and Others, which covers sales of electronic products to the rest of the world. It generates maximum revenue from Europe.
81GF Score
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