Telecom Italia SpAMIL:TIT +0.24%45 Interest Coverage is 0 (At Loss) as of Mar. 2026. GuruFocus rates MIL:TIT with a GF Score™ of 45/100 and a GF Value™ of €2.36 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 286 Telecommunication Services companies, Telecom Italia SpA ranks worse than 93.01% 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. Telecom Italia SpA's
Operating Income
for the
three
months ended in Mar. 2026 was €-52 Mil. Telecom Italia SpA's Interest Expense for the
three
months ended in Mar. 2026 was €-455 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Telecom Italia SpA's Interest Coverage or its related term are showing as below:
MIL:TIT'
s Interest Coverage Range Over the Past 10 Years
Min: 0.74 Med: 1.77 Max: 2.87
Current: 0.74
MIL:TIT's Interest Coverage is ranked worse than 93.01% of 286
companies
in the Telecommunication Services industry
Industry Median: 4.715
vs MIL:TIT: 0.74
Telecom Italia SpA (MIL:TIT) 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 .
Telecom Italia SpA Interest Coverage Related Terms
Telecom Italia SpA Interest Coverage Historical Data
* Premium members only.
The historical data trend for Telecom Italia SpA'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.
MIL:TIT vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, Telecom Italia SpA'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.
Telecom Italia SpA Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telecom Italia SpA's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Telecom Italia SpA'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:
Telecom Italia SpA did not have earnings to cover the 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.
What does a Interest Coverage of 0 (At Loss) mean?
Telecom Italia SpA (MIL:TIT) has a Interest Coverage of 0 (At Loss) as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Telecom Italia SpA and its competitors. Over the past decade, Telecom Italia SpA's Interest Coverage has ranged from 0.74 to 2.87. According to the industry distribution chart, Telecom Italia SpA ranks #266 out of 286 companies in the Telecommunication Services industry, placing it in the top 93%.
Is Telecom Italia SpA's Interest Coverage too high?
Telecom Italia SpA's current Interest Coverage is 0 (At Loss). Over the past 10 years, this metric has ranged from a low of 0.74 to a high of 2.87. Based on the distribution chart, Telecom Italia SpA ranks #266 out of 286 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Telecom Italia SpA has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telecom Italia SpA's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telecom Italia SpA ranks #266 out of 286 companies for Interest Coverage. This places Telecom Italia SpA in the lower half of its industry. The industry median Interest Coverage is 4.72. Historically, Telecom Italia SpA's own Interest Coverage has ranged from 0.74 to 2.87 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.72, based on 286 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 Telecom Italia SpA and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telecom Italia SpA's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telecom Italia SpA stock overvalued right now?
Based on GuruFocus' analysis, Telecom Italia SpA (MIL:TIT) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.36, compared to a current price of €7.80 — trading 230.4% above its estimated fair value. The current Interest Coverage is 0 (At Loss). Telecom Italia SpA's overall GF Score™ is 45/100 with 9 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 Telecom Italia SpA (MIL:TIT), the current Interest Coverage is 0 (At Loss) 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 Telecom Italia SpA (MIL:TIT) Overvalued in 2026?
Based on GuruFocus' analysis, Telecom Italia SpA stock appears to be overvalued.
The current stock price of €7.80 is trading 230.4% above its estimated GF Value™ of €2.36.
GuruFocus considers Telecom Italia SpA to be Significantly Overvalued.
Key valuation signals for MIL:TIT:
Interest Coverage: 0 (At Loss)
GF Value™: €2.36 vs. price of €7.80 (230.4% above fair value)
No single metric tells the full story. See the MIL:TIT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telecom Italia is the incumbent telecommunications operator in Italy, with 23% share in the Italian mobile market and 35% share in broadband. In the mobile market, it competes with Vodafone, WindTre, and Iliad. After the sale of its fixed network to KKR for EUR 18.8 billion in 2024, TIM has become a pure service provider with no network ownership. TIM Brazil is significantly smaller than its peers, Telefonica and America Movil, with 25% wireless market share.
45GF Score
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