Telkom SOCJSE:TKG 75 Interest Coverage is 6.02 as of Mar. 2026, which is 25% above its 10-year median of 4.82. GuruFocus rates JSE:TKG with a GF Score™ of 75/100 and a GF Value™ of R33.55 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 284 Telecommunication Services companies, Telkom SOC ranks better than 54.58% 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. Telkom SOC's
Operating Income
for the
six
months ended in Mar. 2026 was R3,939 Mil. Telkom SOC's Interest Expense for the
six
months ended in Mar. 2026 was R-654 Mil.
Telkom SOC's interest coverage for the quarter that ended in Mar. 2026 was 6.02.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Telkom SOC's Interest Coverage or its related term are showing as below:
JSE:TKG'
s Interest Coverage Range Over the Past 10 Years
Min: 1.25 Med: 4.82 Max: 8.23
Current: 5.38
JSE:TKG's Interest Coverage is ranked better than 54.58% of 284
companies
in the Telecommunication Services industry
Industry Median: 4.685
vs JSE:TKG: 5.38
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 .
Telkom SOC Interest Coverage Related Terms
Telkom SOC Interest Coverage Historical Data
* Premium members only.
The historical data trend for Telkom SOC'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.
JSE:TKG vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, Telkom SOC'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.
Telkom SOC Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telkom SOC's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Telkom SOC'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.
Telkom SOC (JSE:TKG) has a Interest Coverage of 6.02 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Telkom SOC and its competitors. This is 25% above median its historical median of 4.82. Over the past decade, Telkom SOC's Interest Coverage has ranged from 1.25 to 8.23. According to the industry distribution chart, Telkom SOC ranks #129 out of 284 companies in the Telecommunication Services industry, placing it in the top 45.4%.
Is Telkom SOC's Interest Coverage too high?
Telkom SOC's current Interest Coverage of 6.02 is 25% above median its 10-year median of 4.82. Over the past 10 years, this metric has ranged from a low of 1.25 to a high of 8.23. The Telecommunication Services industry median Interest Coverage is 4.69. Telkom SOC's value of 6.02 is 28.5% above this industry median. Based on the distribution chart, Telkom SOC ranks #129 out of 284 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telkom SOC has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telkom SOC's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telkom SOC ranks #129 out of 284 companies for Interest Coverage. This puts Telkom SOC in the upper half of its industry. The industry median Interest Coverage is 4.69. Telkom SOC's value of 6.02 is 28.5% above this benchmark. Historically, Telkom SOC's own Interest Coverage has ranged from 1.25 to 8.23 over the past decade. While the company's 10-year median is 4.82 vs. the industry median of 4.69, Telkom SOC 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 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. Telkom SOC's current Interest Coverage of 6.02 is 28.5% 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 Telkom SOC and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telkom SOC's current Interest Coverage is 6.02, which is 25% above median its own 10-year median of 4.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telkom SOC stock overvalued right now?
Based on GuruFocus' analysis, Telkom SOC (JSE:TKG) is currently considered Significantly Overvalued. The stock's GF Value™ is R33.55, compared to a current price of R55.70 — trading 66% above its estimated fair value. The current Interest Coverage is 6.02, which is 25% above median its 10-year median of 4.82 and 28.5% above the Telecommunication Services industry median of 4.69. Telkom SOC's overall GF Score™ is 75/100 with 1 warning sign 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 Telkom SOC (JSE:TKG), the current Interest Coverage is 6.02 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 Telkom SOC (JSE:TKG) Overvalued in 2026?
Based on GuruFocus' analysis, Telkom SOC stock appears to be overvalued.
The current stock price of R55.70 is trading 66% above its estimated GF Value™ of R33.55.
GuruFocus considers Telkom SOC to be Significantly Overvalued.
Key valuation signals for JSE:TKG:
Interest Coverage: 6.02 (25% above median its 10-year median of 4.82)
GF Value™: R33.55 vs. price of R55.70 (66% above fair value)
Industry Position: 28.5% above the Telecommunication Services median (#129 of 284)
No single metric tells the full story. See the JSE:TKG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telkom SA SOC Ltd provides fixed-line voice and data communications services in South Africa. The company has segments namely: Openserve; Telkom Consumer; BCX; Gyro; and others It derives maximum revenue from Telkom Consumer segment.
75GF Score
Get the complete analysis for JSE:TKG
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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