YoudaoMEX:DAON 73 Interest Coverage is 4.23 as of Mar. 2026, which is 48% above its 10-year median of 2.86. GuruFocus rates MEX:DAON with a GF Score™ of 73/100 and a GF Value™ of MXN108.92. The stock has 4 warning signs investors should review. Among 197 Education companies, Youdao ranks worse than 77.66% 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. Youdao's
Operating Income
for the
three
months ended in Mar. 2026 was MXN150 Mil. Youdao's Interest Expense for the
three
months ended in Mar. 2026 was MXN-36 Mil.
Youdao's interest coverage for the quarter that ended in Mar. 2026 was 4.23.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Youdao's Interest Coverage or its related term are showing as below:
MEX:DAON'
s Interest Coverage Range Over the Past 10 Years
Min: 2.2 Med: 2.86 Max: 3.51
Current: 2.91
MEX:DAON's Interest Coverage is ranked worse than 77.66% of 197
companies
in the Education industry
Industry Median: 12.93
vs MEX:DAON: 2.91
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 .
Youdao Interest Coverage Related Terms
Youdao Interest Coverage Historical Data
* Premium members only.
The historical data trend for Youdao'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.
MEX:DAON vs LINC, COUR, AFYA: Interest Coverage Comparison
For the Education & Training Services subindustry, Youdao'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.
Youdao Interest Coverage vs Education Industry
For the Education industry and Consumer Defensive sector, Youdao's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Youdao'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.
Youdao (MEX:DAON) has a Interest Coverage of 4.23 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Youdao and its competitors. This is 48% above median its historical median of 2.86. Over the past decade, Youdao's Interest Coverage has ranged from 2.20 to 3.51. According to the industry distribution chart, Youdao ranks #153 out of 197 companies in the Education industry, placing it in the top 77.7%.
Is Youdao's Interest Coverage too high?
Youdao's current Interest Coverage of 4.23 is 48% above median its 10-year median of 2.86. Over the past 10 years, this metric has ranged from a low of 2.20 to a high of 3.51. The Education industry median Interest Coverage is 12.93. Youdao's value of 4.23 is 67.3% below this industry median. Based on the distribution chart, Youdao ranks #153 out of 197 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Youdao has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Youdao's Interest Coverage compare to LINC and COUR?
According to the Education industry distribution chart, Youdao ranks #153 out of 197 companies for Interest Coverage. This places Youdao in the lower half of its industry. The industry median Interest Coverage is 12.93. Youdao's value of 4.23 is 67.3% below this benchmark. Historically, Youdao's own Interest Coverage has ranged from 2.20 to 3.51 over the past decade. While the company's 10-year median is 2.86 vs. the industry median of 12.93, Youdao has consistently been below 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 Education company?
The median Interest Coverage among Education companies is 12.93, based on 197 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. Youdao's current Interest Coverage of 4.23 is 67.3% below 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 Youdao and its competitors. For the Education industry, the median Interest Coverage is 12.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Youdao's current Interest Coverage is 4.23, which is 48% above median its own 10-year median of 2.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Youdao stock overvalued right now?
Youdao (MEX:DAON) has a current Interest Coverage of 4.23. The stock's GF Value™ is MXN108.92, compared to a current price of MXN195.00 — trading 79% above its estimated fair value. The current Interest Coverage is 4.23, which is 48% above median its 10-year median of 2.86 and 67.3% below the Education industry median of 12.93. Youdao's overall GF Score™ is 73/100 with 4 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 Youdao (MEX:DAON), the current Interest Coverage is 4.23 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 Youdao (MEX:DAON) Overvalued in 2026?
Based on GuruFocus' analysis, Youdao stock appears to be overvalued.
The current stock price of MXN195.00 is trading 79% above its estimated GF Value™ of MXN108.92.
Key valuation signals for MEX:DAON:
Interest Coverage: 4.23 (48% above median its 10-year median of 2.86)
GF Value™: MXN108.92 vs. price of MXN195.00 (79% above fair value)
Industry Position: 67.3% below the Education median (#153 of 197)
No single metric tells the full story. See the MEX:DAON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Youdao Inc develops and markets software applications. It engages in developing technologies to provide learning content, applications, and solutions. The firm operates in three segments: Learning services, Smart devices, and Online marketing services. The majority of its revenue comes from the Learning services segment, which generates revenues from online courses, mainly including Youdao Premium Courses, NetEase Cloud Classroom, and China University MOOC. The learning products segment includes sales of smart devices such as the Youdao Dictionary Pen and the Youdao Pocket Translator. Geographically, all of its revenue is generated from the People's Republic of China.
73GF Score
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