Hostelworld GroupLSE:HSW +0.90%82 Interest Coverage is 86.46 as of Dec. 2025, which is 31% below its 10-year median of 125.68. GuruFocus rates LSE:HSW with a GF Score™ of 82/100 and a GF Value™ of £1.46 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 611 Travel & Leisure companies, Hostelworld Group ranks better than 59.25% 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. Hostelworld Group's
Operating Income
for the
six
months ended in Dec. 2025 was £7.52 Mil. Hostelworld Group's Interest Expense for the
six
months ended in Dec. 2025 was £-0.09 Mil.
Hostelworld Group's interest coverage for the quarter that ended in Dec. 2025 was 86.46.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hostelworld Group's Interest Coverage or its related term are showing as below:
LSE:HSW'
s Interest Coverage Range Over the Past 10 Years
Min: 1.36 Med: 125.68 Max: 151.17
Current: 7.96
LSE:HSW's Interest Coverage is ranked better than 59.25% of 611
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs LSE:HSW: 7.96
Hostelworld Group (LSE:HSW) 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 .
Hostelworld Group Interest Coverage Related Terms
Hostelworld Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hostelworld Group'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.
LSE:HSW vs BKNG, ABNB, RCL: Interest Coverage Comparison
For the Travel Services subindustry, Hostelworld Group'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.
Hostelworld Group Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hostelworld Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hostelworld Group'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.
Hostelworld Group (LSE:HSW) has a Interest Coverage of 86.46 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hostelworld Group and its competitors. This is 31% below median its historical median of 125.68. Over the past decade, Hostelworld Group's Interest Coverage has ranged from 1.36 to 151.17. According to the industry distribution chart, Hostelworld Group ranks #249 out of 611 companies in the Travel & Leisure industry, placing it in the top 40.8%.
Is Hostelworld Group's Interest Coverage too high?
Hostelworld Group's current Interest Coverage of 86.46 is 31% below median its 10-year median of 125.68. Over the past 10 years, this metric has ranged from a low of 1.36 to a high of 151.17. The Travel & Leisure industry median Interest Coverage is 5.35. Hostelworld Group's value of 86.46 is 1516.1% above this industry median. Based on the distribution chart, Hostelworld Group ranks #249 out of 611 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Hostelworld Group has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hostelworld Group's Interest Coverage compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Hostelworld Group ranks #249 out of 611 companies for Interest Coverage. This puts Hostelworld Group in the upper half of its industry. The industry median Interest Coverage is 5.35. Hostelworld Group's value of 86.46 is 1516.1% above this benchmark. Historically, Hostelworld Group's own Interest Coverage has ranged from 1.36 to 151.17 over the past decade. While the company's 10-year median is 125.68 vs. the industry median of 5.35, Hostelworld Group 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 Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 611 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. Hostelworld Group's current Interest Coverage of 86.46 is 1516.1% 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 Hostelworld Group and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hostelworld Group's current Interest Coverage is 86.46, which is 31% below median its own 10-year median of 125.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hostelworld Group stock overvalued right now?
Based on GuruFocus' analysis, Hostelworld Group (LSE:HSW) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.46, compared to a current price of £1.12 — trading 23.6% below its estimated fair value. The current Interest Coverage is 86.46, which is 31% below median its 10-year median of 125.68 and 1516.1% above the Travel & Leisure industry median of 5.35. Hostelworld Group's overall GF Score™ is 82/100 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 Hostelworld Group (LSE:HSW), the current Interest Coverage is 86.46 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 Hostelworld Group (LSE:HSW) Overvalued in 2026?
Based on GuruFocus' analysis, Hostelworld Group stock appears to be undervalued.
The current stock price of £1.12 is trading 23.6% below its estimated GF Value™ of £1.46.
GuruFocus considers Hostelworld Group to be Modestly Undervalued.
Key valuation signals for LSE:HSW:
Interest Coverage: 86.46 (31% below median its 10-year median of 125.68)
GF Value™: £1.46 vs. price of £1.12 (23.6% below fair value)
Industry Position: 1516.1% above the Travel & Leisure median (#249 of 611)
No single metric tells the full story. See the LSE:HSW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hostelworld Group PLC is a social network-powered Online Travel Agent (OTA) focused on the hostel market. It has developed and promoted the Hostelworld brand, operating a two-sided marketplace focused on the hostelling category. The Hostel partners load their bed inventory to the company's platform, which it markets to customers via its website and mobile Android and iOS apps. In addition, the Hostelworld platform has a series of social features on its platform that connect travellers in hostels and cities based on their booking data. Geographically, it derives maximum revenue from Europe, followed by Asia, Africa and Oceania, and the Americas.
82GF Score
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