ITCLUX:ITC 81 Interest Coverage is 222.82 as of Mar. 2026, which is 48% below its 10-year median of 428.91. GuruFocus rates LUX:ITC with a GF Score™ of 81/100 and a GF Value™ of $8.73. The stock has 1 warning sign investors should review. Among 35 Tobacco Products companies, ITC ranks better than 80% 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. ITC's
Operating Income
for the
three
months ended in Mar. 2026 was $701 Mil. ITC's Interest Expense for the
three
months ended in Mar. 2026 was $-3 Mil.
ITC's interest coverage for the quarter that ended in Mar. 2026 was 222.82.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. ITC Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for ITC's Interest Coverage or its related term are showing as below:
LUX:ITC'
s Interest Coverage Range Over the Past 10 Years
Min: 170 Med: 428.91 Max: 605.2
Current: 300.66
LUX:ITC's Interest Coverage is ranked better than 80% of 35
companies
in the Tobacco Products industry
Industry Median: 10.9
vs LUX:ITC: 300.66
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 .
ITC Interest Coverage Related Terms
ITC Interest Coverage Historical Data
* Premium members only.
The historical data trend for ITC'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.
LUX:ITC vs PM, MO, TPB: Interest Coverage Comparison
For the Tobacco subindustry, ITC'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.
ITC Interest Coverage vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, ITC's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ITC'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.
ITC (LUX:ITC) has a Interest Coverage of 222.82 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ITC and its competitors. This is 48% below median its historical median of 428.91. Over the past decade, ITC's Interest Coverage has ranged from 170.00 to 605.20. According to the industry distribution chart, ITC ranks #7 out of 35 companies in the Tobacco Products industry, placing it in the top 20%.
Is ITC's Interest Coverage too high?
ITC's current Interest Coverage of 222.82 is 48% below median its 10-year median of 428.91. Over the past 10 years, this metric has ranged from a low of 170.00 to a high of 605.20. The Tobacco Products industry median Interest Coverage is 10.90. ITC's value of 222.82 is 1944.2% above this industry median. Based on the distribution chart, ITC ranks #7 out of 35 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, ITC has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does ITC's Interest Coverage compare to PM and MO?
According to the Tobacco Products industry distribution chart, ITC ranks #7 out of 35 companies for Interest Coverage. This places ITC in the top 20% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 10.90. ITC's value of 222.82 is 1944.2% above this benchmark. Historically, ITC's own Interest Coverage has ranged from 170.00 to 605.20 over the past decade. While the company's 10-year median is 428.91 vs. the industry median of 10.90, ITC 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 Tobacco Products company?
The median Interest Coverage among Tobacco Products companies is 10.90, based on 35 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. ITC's current Interest Coverage of 222.82 is 1944.2% 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 ITC and its competitors. For the Tobacco Products industry, the median Interest Coverage is 10.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ITC's current Interest Coverage is 222.82, which is 48% below median its own 10-year median of 428.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ITC stock overvalued right now?
ITC (LUX:ITC) has a current Interest Coverage of 222.82. The stock's GF Value™ is $8.73, compared to a current price of $5.50 — trading 37% below its estimated fair value. The current Interest Coverage is 222.82, which is 48% below median its 10-year median of 428.91 and 1944.2% above the Tobacco Products industry median of 10.90. ITC's overall GF Score™ is 81/100 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 ITC (LUX:ITC), the current Interest Coverage is 222.82 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 ITC (LUX:ITC) Overvalued in 2026?
Based on GuruFocus' analysis, ITC stock appears to be undervalued.
The current stock price of $5.50 is trading 37% below its estimated GF Value™ of $8.73.
Key valuation signals for LUX:ITC:
Interest Coverage: 222.82 (48% below median its 10-year median of 428.91)
GF Value™: $8.73 vs. price of $5.50 (37% below fair value)
Industry Position: 1944.2% above the Tobacco Products median (#7 of 35)
No single metric tells the full story. See the LUX:ITC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ITC Ltd is an Indian conglomerate that predominantly operates in the consumer goods space, particularly cigarettes. The company operates in three main business segments: Fast Moving Consumer Goods; Paperboards, Paper, and Packaging; and Agri-Business. The company's total revenue comes from the Fast Moving Consumer Goods Business, which is dominated by cigarettes but also includes branded packaged foods, personal care products, and other categories. The company generates the vast majority of its revenue in India.
81GF Score
Get the complete analysis for LUX:ITC
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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