IDP EducationIDPUF 60 Interest Coverage is 3.99 as of Dec. 2025, which is 90% below its 10-year median of 40.22. GuruFocus rates IDPUF with a GF Score™ of 60/100 and a GF Value™ of $5.67 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 197 Education companies, IDP Education ranks worse than 78.68% 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. IDP Education's
Operating Income
for the
six
months ended in Dec. 2025 was $33.5 Mil. IDP Education's Interest Expense for the
six
months ended in Dec. 2025 was $-8.4 Mil.
IDP Education's interest coverage for the quarter that ended in Dec. 2025 was 3.99.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for IDP Education's Interest Coverage or its related term are showing as below:
IDPUF'
s Interest Coverage Range Over the Past 10 Years
Min: 2.77 Med: 40.22 Max: 486.48
Current: 2.77
IDPUF's Interest Coverage is ranked worse than 78.68% of 197
companies
in the Education industry
Industry Median: 12.93
vs IDPUF: 2.77
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 .
IDP Education Interest Coverage Related Terms
IDP Education Interest Coverage Historical Data
* Premium members only.
The historical data trend for IDP Education'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.
IDPUF vs EDU, TAL, GHC: Interest Coverage Comparison
For the Education & Training Services subindustry, IDP Education'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.
IDP Education Interest Coverage vs Education Industry
For the Education industry and Consumer Defensive sector, IDP Education's Interest Coverage distribution charts can be found below:
* The bar in red indicates where IDP Education'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.
IDP Education (IDPUF) has a Interest Coverage of 3.99 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on IDP Education and its competitors. This is 90% below median its historical median of 40.22. Over the past decade, IDP Education's Interest Coverage has ranged from 2.77 to 486.48. According to the industry distribution chart, IDP Education ranks #155 out of 197 companies in the Education industry, placing it in the top 78.7%.
Is IDP Education's Interest Coverage too high?
IDP Education's current Interest Coverage of 3.99 is 90% below median its 10-year median of 40.22. Over the past 10 years, this metric has ranged from a low of 2.77 to a high of 486.48. The Education industry median Interest Coverage is 12.93. IDP Education's value of 3.99 is 69.1% below this industry median. Based on the distribution chart, IDP Education ranks #155 out of 197 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, IDP Education has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does IDP Education's Interest Coverage compare to EDU and TAL?
According to the Education industry distribution chart, IDP Education ranks #155 out of 197 companies for Interest Coverage. This places IDP Education in the lower half of its industry. The industry median Interest Coverage is 12.93. IDP Education's value of 3.99 is 69.1% below this benchmark. Historically, IDP Education's own Interest Coverage has ranged from 2.77 to 486.48 over the past decade. While the company's 10-year median is 40.22 vs. the industry median of 12.93, IDP Education 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 an Education company?
The median Interest Coverage among Education companies is 12.93, based on 197 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. IDP Education's current Interest Coverage of 3.99 is 69.1% 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 IDP Education and its competitors. For the Education industry, the median Interest Coverage is 12.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IDP Education's current Interest Coverage is 3.99, which is 90% below median its own 10-year median of 40.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IDP Education stock overvalued right now?
Based on GuruFocus' analysis, IDP Education (IDPUF) is currently considered Significantly Undervalued. The stock's GF Value™ is $5.67, compared to a current price of $2.03 — trading 64.2% below its estimated fair value. The current Interest Coverage is 3.99, which is 90% below median its 10-year median of 40.22 and 69.1% below the Education industry median of 12.93. IDP Education's overall GF Score™ is 60/100 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 IDP Education (IDPUF), the current Interest Coverage is 3.99 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 IDP Education (IDPUF) Overvalued in 2026?
Based on GuruFocus' analysis, IDP Education stock appears to be undervalued.
The current stock price of $2.03 is trading 64.2% below its estimated GF Value™ of $5.67.
GuruFocus considers IDP Education to be Significantly Undervalued.
Key valuation signals for IDPUF:
Interest Coverage: 3.99 (90% below median its 10-year median of 40.22)
GF Value™: $5.67 vs. price of $2.03 (64.2% below fair value)
Industry Position: 69.1% below the Education median (#155 of 197)
No single metric tells the full story. See the IDPUF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IDP Education performs English language testing and student placement services globally, constituting 31% and 57% of fiscal 2025 group gross profit, respectively. Additionally, IDP operates English language schools, organizes education events, and delivers consultancy services to education institutions, which constitutes the remainder of group gross profit. Originally established in Australia as an aid body for Southeast Asia, today IDP operates one of the world's most widely accepted English language tests and one of the world's largest student placement services businesses, predominantly connecting prospective migrants from India and China to Australia, Canada, and the United Kingdom.
60GF Score
Get the complete analysis for IDPUF
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
IDPUF has been successfully added to your 
