Procter & Gamble CoHAM:PRG -2.11%83 Interest Coverage is 20.52 as of Mar. 2026, which is 23% below its 10-year median of 26.79. GuruFocus rates HAM:PRG with a GF Score™ of 83/100 and a GF Value™ of €148.94 (Modestly Undervalued). Among 1,510 Consumer Packaged Goods companies, Procter & Gamble Co ranks better than 67.35% 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. Procter & Gamble Co's
Operating Income
for the
three
months ended in Mar. 2026 was €3,959 Mil. Procter & Gamble Co's Interest Expense for the
three
months ended in Mar. 2026 was €-193 Mil.
Procter & Gamble Co's interest coverage for the quarter that ended in Mar. 2026 was 20.52.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Procter & Gamble Co's Interest Coverage or its related term are showing as below:
HAM:PRG'
s Interest Coverage Range Over the Past 10 Years
Min: 21.5 Med: 26.79 Max: 40.58
Current: 23.65
HAM:PRG's Interest Coverage is ranked better than 67.35% of 1510
companies
in the Consumer Packaged Goods industry
Industry Median: 8.64
vs HAM:PRG: 23.65
Procter & Gamble Co (HAM:PRG) Interest Coverage Explanation
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 .
Procter & Gamble Co Interest Coverage Related Terms
Procter & Gamble Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for Procter & Gamble Co'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.
HAM:PRG vs CL, KVUE, KMB: Interest Coverage Comparison
For the Household & Personal Products subindustry, Procter & Gamble Co'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.
Procter & Gamble Co Interest Coverage vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Procter & Gamble Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Procter & Gamble Co'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.
Procter & Gamble Co (HAM:PRG) has a Interest Coverage of 20.52 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Procter & Gamble Co and its competitors. This is 23% below median its historical median of 26.79. Over the past decade, Procter & Gamble Co's Interest Coverage has ranged from 21.50 to 40.58. According to the industry distribution chart, Procter & Gamble Co ranks #493 out of 1510 companies in the Consumer Packaged Goods industry, placing it in the top 32.6%.
Is Procter & Gamble Co's Interest Coverage too high?
Procter & Gamble Co's current Interest Coverage of 20.52 is 23% below median its 10-year median of 26.79. Over the past 10 years, this metric has ranged from a low of 21.50 to a high of 40.58. The Consumer Packaged Goods industry median Interest Coverage is 8.64. Procter & Gamble Co's value of 20.52 is 137.5% above this industry median. Based on the distribution chart, Procter & Gamble Co ranks #493 out of 1510 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Procter & Gamble Co has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Procter & Gamble Co's Interest Coverage compare to CL and KVUE?
According to the Consumer Packaged Goods industry distribution chart, Procter & Gamble Co ranks #493 out of 1510 companies for Interest Coverage. This puts Procter & Gamble Co in the upper half of its industry. The industry median Interest Coverage is 8.64. Procter & Gamble Co's value of 20.52 is 137.5% above this benchmark. Historically, Procter & Gamble Co's own Interest Coverage has ranged from 21.50 to 40.58 over the past decade. While the company's 10-year median is 26.79 vs. the industry median of 8.64, Procter & Gamble Co 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 Consumer Packaged Goods company?
The median Interest Coverage among Consumer Packaged Goods companies is 8.64, based on 1,510 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. Procter & Gamble Co's current Interest Coverage of 20.52 is 137.5% 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 Procter & Gamble Co and its competitors. For the Consumer Packaged Goods industry, the median Interest Coverage is 8.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Procter & Gamble Co's current Interest Coverage is 20.52, which is 23% below median its own 10-year median of 26.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Procter & Gamble Co stock overvalued right now?
Based on GuruFocus' analysis, Procter & Gamble Co (HAM:PRG) is currently considered Modestly Undervalued. The stock's GF Value™ is €148.94, compared to a current price of €131.68 — trading 11.6% below its estimated fair value. The current Interest Coverage is 20.52, which is 23% below median its 10-year median of 26.79 and 137.5% above the Consumer Packaged Goods industry median of 8.64. Procter & Gamble Co's overall GF Score™ is 83/100. 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 Procter & Gamble Co (HAM:PRG), the current Interest Coverage is 20.52 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 Procter & Gamble Co (HAM:PRG) Overvalued in 2026?
Based on GuruFocus' analysis, Procter & Gamble Co stock appears to be undervalued.
The current stock price of €131.68 is trading 11.6% below its estimated GF Value™ of €148.94.
GuruFocus considers Procter & Gamble Co to be Modestly Undervalued.
Key valuation signals for HAM:PRG:
Interest Coverage: 20.52 (23% below median its 10-year median of 26.79)
GF Value™: €148.94 vs. price of €131.68 (11.6% below fair value)
Industry Position: 137.5% above the Consumer Packaged Goods median (#493 of 1510)
No single metric tells the full story. See the HAM:PRG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Since its founding in 1837, Procter & Gamble has become one of the world's largest consumer product manufacturers, with annual sales of nearly $85 billion. It operates with a lineup of leading brands, including more than 20 that generate annual global sales of more than $1 billion each, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. Sales outside its home turf represent just more than half of the firm's consolidated total.
83GF Score
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