ABB (MEX:ABBNN) Interest Coverage: 49.38 (As of Mar. 2026) — 275% Above Median


MEX:ABBNN ABB Ltd MEX:ABBNN
54 GF Score
Price MXN1,808.57
GF Value MXN1,160.73
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is ABB Interest Coverage?

ABB MEX:ABBNN 54 Interest Coverage is 49.38 as of Mar. 2026, which is 275% above its 10-year median of 13.18. GuruFocus rates MEX:ABBNN with a GF Score™ of 54/100 and a GF Value™ of MXN1,160.73 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,330 Industrial Products companies, ABB ranks better than 76.65% 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. ABB's Operating Income for the three months ended in Mar. 2026 was MXN25,823 Mil. ABB's Interest Expense for the three months ended in Mar. 2026 was MXN-523 Mil. ABB's interest coverage for the quarter that ended in Mar. 2026 was 49.38. The higher the ratio, the stronger the company's financial strength is.

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

MEX:ABBNN' s Interest Coverage Range Over the Past 10 Years
Min: 7.73   Med: 13.18   Max: 66.62
Current: 65.82


MEX:ABBNN's Interest Coverage is ranked better than
76.65% of 2330 companies
in the Industrial Products industry
Industry Median: 14.835 vs MEX:ABBNN: 65.82

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


ABB  (MEX:ABBNN) 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 .


ABB Interest Coverage Related Terms


ABB Interest Coverage Historical Data

* Premium members only.

The historical data trend for ABB'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.

ABB Interest Coverage Chart

ABB Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 20.85 26.25 15.83 64.23 66.62

ABB Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 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 29.88 92.25 47.41 116.92 49.38

MEX:ABBNN vs VRT, BE, NVT: Interest Coverage Comparison

For the Electrical Equipment & Parts subindustry, ABB'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.


ABB Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, ABB's Interest Coverage distribution charts can be found below:

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


MEX:ABBNN
54GF Score
ABB Ltd MEX:ABBNN
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

ABB 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.

ABB's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, ABB's Interest Expense was MXN-1,548 Mil. Its Operating Income was MXN103,155 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN150,564 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*103154.655/-1548.49
=66.62

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

Here, for the three months ended in Mar. 2026, ABB's Interest Expense was MXN-523 Mil. Its Operating Income was MXN25,823 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN128,970 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*25822.826/-522.948
=49.38

* 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 49.38 mean?
ABB (MEX:ABBNN) has a Interest Coverage of 49.38 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ABB and its competitors. This is 275% above median its historical median of 13.18. Over the past decade, ABB's Interest Coverage has ranged from 7.73 to 66.62. According to the industry distribution chart, ABB ranks #544 out of 2330 companies in the Industrial Products industry, placing it in the top 23.3%.
Is ABB's Interest Coverage too high?
ABB's current Interest Coverage of 49.38 is 275% above median its 10-year median of 13.18. Over the past 10 years, this metric has ranged from a low of 7.73 to a high of 66.62. The Industrial Products industry median Interest Coverage is 14.84. ABB's value of 49.38 is 232.9% above this industry median. Based on the distribution chart, ABB ranks #544 out of 2330 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, ABB has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ABB's Interest Coverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, ABB ranks #544 out of 2330 companies for Interest Coverage. This places ABB in the top 23% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 14.84. ABB's value of 49.38 is 232.9% above this benchmark. Historically, ABB's own Interest Coverage has ranged from 7.73 to 66.62 over the past decade. While the company's 10-year median is 13.18 vs. the industry median of 14.84, ABB 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 an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.84, based on 2,330 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. ABB's current Interest Coverage of 49.38 is 232.9% 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 ABB and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABB's current Interest Coverage is 49.38, which is 275% above median its own 10-year median of 13.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ABB stock overvalued right now?
Based on GuruFocus' analysis, ABB (MEX:ABBNN) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,160.73, compared to a current price of MXN1,808.57 — trading 55.8% above its estimated fair value. The current Interest Coverage is 49.38, which is 275% above median its 10-year median of 13.18 and 232.9% above the Industrial Products industry median of 14.84. ABB's overall GF Score™ is 54/100 with 5 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 ABB (MEX:ABBNN), the current Interest Coverage is 49.38 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 ABB (MEX:ABBNN) Overvalued in 2026?

Based on GuruFocus' analysis, ABB stock appears to be overvalued. The current stock price of MXN1,808.57 is trading 55.8% above its estimated GF Value™ of MXN1,160.73. GuruFocus considers ABB to be Significantly Overvalued.

Key valuation signals for MEX:ABBNN:

  • Interest Coverage: 49.38 (275% above median its 10-year median of 13.18)
  • GF Value™: MXN1,160.73 vs. price of MXN1,808.57 (55.8% above fair value)
  • GF Score™: 54/100 with 5 warning signs
  • Industry Position: 232.9% above the Industrial Products median (#544 of 2330)

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


ABB Business Description

Address Affolternstrasse 44, Zurich, CHE, 8050
ABB supplies electrical equipment and automation products. Founded in the late 19th century, the company was created out of the merger of two old industrial companies: ASEA and BBC. Its products include electrical equipment, industrial robots, and equipment used for industrial automation, sold via approximately 19 business divisions. ABB is the number-one or number-two supplier in two-thirds of its product segments.
54GF Score

Get the complete analysis for MEX:ABBNN

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

MXN1,808.57
Price
MXN1,160.73
GF Value