Palace Capital (LSE:PCA) Interest Coverage: No Debt (1) (As of Mar. 2026) — 74% Below Median

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LSE:PCA Palace Capital PLC LSE:PCA
60 GF Score
Price £1.83
GF Value £1.46
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Palace Capital Interest Coverage?

Palace Capital LSE:PCA +0.55% 60 Interest Coverage is No Debt (1) as of Mar. 2026, which is 100% below its 10-year median of 3.86. GuruFocus rates LSE:PCA with a GF Score™ of 60/100 and a GF Value™ of £1.46 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 695 REITs companies, Palace Capital ranks better than 99.86% 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. Palace Capital's Operating Income for the six months ended in Mar. 2026 was £-0.44 Mil. Palace Capital's Interest Expense for the six months ended in Mar. 2026 was £0.00 Mil. Palace Capital has no debt. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Palace Capital PLC has no debt.

(1) 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.

The historical rank and industry rank for Palace Capital's Interest Coverage or its related term are showing as below:

LSE:PCA' s Interest Coverage Range Over the Past 10 Years
Min: 2.76   Med: 3.86   Max: No Debt
Current: No Debt


LSE:PCA's Interest Coverage is ranked better than
99.86% of 695 companies
in the REITs industry
Industry Median: 3.12 vs LSE:PCA: No Debt

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Palace Capital  (LSE:PCA) 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 .


Palace Capital Interest Coverage Related Terms


Palace Capital Interest Coverage Historical Data

* Premium members only.

The historical data trend for Palace Capital'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.

Palace Capital Interest Coverage Chart

Palace Capital Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.50 5.24 2.76 3.52 22.01

Palace Capital Semi-Annual Data
Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.23 10.69 0.00 No Debt No Debt

LSE:PCA vs VICI, WPC, BNL: Interest Coverage Comparison

For the REIT - Diversified subindustry, Palace Capital'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.


Palace Capital Interest Coverage vs REITs Industry

For the REITs industry and Real Estate sector, Palace Capital's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Palace Capital's Interest Coverage falls into.


LSE:PCA
60GF Score
Palace Capital PLC LSE:PCA
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Palace Capital Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Palace Capital's Interest Coverage for the fiscal year that ended in Mar. 2025 is calculated as

Here, for the fiscal year that ended in Mar. 2025, Palace Capital's Interest Expense was £-0.10 Mil. Its Operating Income was £2.14 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.00 Mil.

Interest Coverage=-1* Operating Income (A: Mar. 2025 )/Interest Expense (A: Mar. 2025 )
=-1*2.135/-0.097
=22.01

Palace Capital's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the six months ended in Mar. 2026, Palace Capital's Interest Expense was £0.00 Mil. Its Operating Income was £-0.44 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.00 Mil.

Palace Capital had no debt (1).

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of No Debt <sup>(1)</sup> mean?
Palace Capital (LSE:PCA) has a Interest Coverage of No Debt (1) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Palace Capital and its competitors. This is 74% below median its historical median of 3.86. Over the past decade, Palace Capital's Interest Coverage has ranged from 2.76 to 10,000.00. According to the industry distribution chart, Palace Capital ranks #1 out of 695 companies in the REITs industry, placing it in the top 0.099999999999994%.
Is Palace Capital's Interest Coverage too high?
Palace Capital's current Interest Coverage of No Debt (1) is 74% below median its 10-year median of 3.86. Over the past 10 years, this metric has ranged from a low of 2.76 to a high of 10,000.00. Based on the distribution chart, Palace Capital ranks #1 out of 695 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Palace Capital has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Palace Capital's Interest Coverage compare to VICI and WPC?
According to the REITs industry distribution chart, Palace Capital ranks #1 out of 695 companies for Interest Coverage. This places Palace Capital in the top 0% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 3.12. Historically, Palace Capital's own Interest Coverage has ranged from 2.76 to 10,000.00 over the past decade. 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 REITs company?
The median Interest Coverage among REITs companies is 3.12, based on 695 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. 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 Palace Capital and its competitors. For the REITs industry, the median Interest Coverage is 3.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palace Capital's current Interest Coverage is No Debt (1), which is 74% below median its own 10-year median of 3.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palace Capital stock overvalued right now?
Based on GuruFocus' analysis, Palace Capital (LSE:PCA) is currently considered Modestly Overvalued. The stock's GF Value™ is £1.46, compared to a current price of £1.83 — trading 25.3% above its estimated fair value. The current Interest Coverage is No Debt (1), which is 74% below median its 10-year median of 3.86. Palace Capital's overall GF Score™ is 60/100 with 6 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 Palace Capital (LSE:PCA), the current Interest Coverage is No Debt (1) 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 Palace Capital (LSE:PCA) Overvalued in 2026?

Based on GuruFocus' analysis, Palace Capital stock appears to be overvalued. The current stock price of £1.83 is trading 25.3% above its estimated GF Value™ of £1.46. GuruFocus considers Palace Capital to be Modestly Overvalued.

Key valuation signals for LSE:PCA:

  • Interest Coverage: No Debt (1) (74% below median its 10-year median of 3.86)
  • GF Value™: £1.46 vs. price of £1.83 (25.3% above fair value)
  • GF Score™: 60/100 with 6 warning signs

No single metric tells the full story. See the LSE:PCA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Palace Capital Business Description

Industry Real EstateREITs
Other Exchanges PCAl:UK
Address 84 Eccleston Square, Thomas House, London, GBR, SW1V 1PX
Palace Capital PLC is a property investment company. The Company's principal activity is to invest in commercial real estate in the UK. Its portfolio includes investment properties throughout England, predominantly regional investments outside London, and a diverse portfolio of commercial buildings. The company generates revenue in the form of property income and represents the value of accrued charges under operating leases for rental of the Group's investment properties. Its only reportable segment is an Investment property. The company's properties include Hudson House, York; Fraser House, Staines, Milton Keynes, and Midsummer Boulevard.
60GF Score

Get the complete analysis for LSE:PCA

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

£1.83
Price
£1.46
GF Value