Western DigitalMEX:WDC -12.43%60 Interest Coverage is 32.50 as of Mar. 2026, which is 966% above its 10-year median of 3.05. GuruFocus rates MEX:WDC with a GF Score™ of 60/100 and a GF Value™ of MXN1,504.48 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,673 Hardware companies, Western Digital ranks better than 53.32% 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. Western Digital's
Operating Income
for the
three
months ended in Mar. 2026 was MXN22,270 Mil. Western Digital's Interest Expense for the
three
months ended in Mar. 2026 was MXN-685 Mil.
Western Digital's interest coverage for the quarter that ended in Mar. 2026 was 32.50.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Western Digital's Interest Coverage or its related term are showing as below:
MEX:WDC'
s Interest Coverage Range Over the Past 10 Years
Min: 0.23 Med: 3.05 Max: 16.33
Current: 16.33
MEX:WDC's Interest Coverage is ranked better than 53.32% of 1673
companies
in the Hardware industry
Industry Median: 13.73
vs MEX:WDC: 16.33
Western Digital (MEX:WDC) 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 .
Western Digital Interest Coverage Related Terms
Western Digital Interest Coverage Historical Data
* Premium members only.
The historical data trend for Western Digital'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:WDC vs STX, ANET, SNDK: Interest Coverage Comparison
For the Computer Hardware subindustry, Western Digital'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.
Western Digital Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Western Digital's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Western Digital'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.
Western Digital (MEX:WDC) has a Interest Coverage of 32.50 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Western Digital and its competitors. This is 966% above median its historical median of 3.05. Over the past decade, Western Digital's Interest Coverage has ranged from 0.23 to 16.33. According to the industry distribution chart, Western Digital ranks #781 out of 1673 companies in the Hardware industry, placing it in the top 46.7%.
Is Western Digital's Interest Coverage too high?
Western Digital's current Interest Coverage of 32.50 is 966% above median its 10-year median of 3.05. Over the past 10 years, this metric has ranged from a low of 0.23 to a high of 16.33. The Hardware industry median Interest Coverage is 13.73. Western Digital's value of 32.50 is 136.7% above this industry median. Based on the distribution chart, Western Digital ranks #781 out of 1673 companies in the Hardware industry, which is above the industry midpoint. Overall, Western Digital has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Western Digital's Interest Coverage compare to STX and ANET?
According to the Hardware industry distribution chart, Western Digital ranks #781 out of 1673 companies for Interest Coverage. This puts Western Digital in the upper half of its industry. The industry median Interest Coverage is 13.73. Western Digital's value of 32.50 is 136.7% above this benchmark. Historically, Western Digital's own Interest Coverage has ranged from 0.23 to 16.33 over the past decade. While the company's 10-year median is 3.05 vs. the industry median of 13.73, Western Digital 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,673 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. Western Digital's current Interest Coverage of 32.50 is 136.7% 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 Western Digital and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Western Digital's current Interest Coverage is 32.50, which is 966% above median its own 10-year median of 3.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Western Digital stock overvalued right now?
Based on GuruFocus' analysis, Western Digital (MEX:WDC) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,504.48, compared to a current price of MXN10,221.32 — trading 579.4% above its estimated fair value. The current Interest Coverage is 32.50, which is 966% above median its 10-year median of 3.05 and 136.7% above the Hardware industry median of 13.73. Western Digital's overall GF Score™ is 60/100 with 2 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 Western Digital (MEX:WDC), the current Interest Coverage is 32.50 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 Western Digital (MEX:WDC) Overvalued in 2026?
Based on GuruFocus' analysis, Western Digital stock appears to be overvalued.
The current stock price of MXN10,221.32 is trading 579.4% above its estimated GF Value™ of MXN1,504.48.
GuruFocus considers Western Digital to be Significantly Overvalued.
Key valuation signals for MEX:WDC:
Interest Coverage: 32.50 (966% above median its 10-year median of 3.05)
GF Value™: MXN1,504.48 vs. price of MXN10,221.32 (579.4% above fair value)
Industry Position: 136.7% above the Hardware median (#781 of 1673)
No single metric tells the full story. See the MEX:WDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Western Digital is a leading vertically integrated supplier of hard disk drives. The HDD market is a practical duopoly, with Western Digital and Seagate being the two largest players. Western Digital designs and manufactures its HDDs, with much of the manufacturing and workforce located in Asia. The primary consumers of HDDs are data centers.
60GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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