East African BreweriesNAI:EABL -0.74%86 Interest Coverage is 8.53 as of Dec. 2025, which is 88% above its 10-year median of 4.54. GuruFocus rates NAI:EABL with a GF Score™ of 86/100 and a GF Value™ of KES319.87 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 158 Beverages - Alcoholic companies, East African Breweries ranks worse than 62.66% 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. East African Breweries's
Operating Income
for the
six
months ended in Dec. 2025 was KES18,539 Mil. East African Breweries's Interest Expense for the
six
months ended in Dec. 2025 was KES-2,174 Mil.
East African Breweries's interest coverage for the quarter that ended in Dec. 2025 was 8.53.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for East African Breweries's Interest Coverage or its related term are showing as below:
NAI:EABL'
s Interest Coverage Range Over the Past 10 Years
Min: 3.66 Med: 4.54 Max: 7
Current: 6.36
NAI:EABL's Interest Coverage is ranked worse than 62.66% of 158
companies
in the Beverages - Alcoholic industry
Industry Median: 8.56
vs NAI:EABL: 6.36
East African Breweries (NAI:EABL) 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 .
East African Breweries Interest Coverage Related Terms
East African Breweries Interest Coverage Historical Data
* Premium members only.
The historical data trend for East African Breweries'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.
NAI:EABL vs BUD, STZ, TAP: Interest Coverage Comparison
For the Beverages - Brewers subindustry, East African Breweries'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.
East African Breweries Interest Coverage vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, East African Breweries's Interest Coverage distribution charts can be found below:
* The bar in red indicates where East African Breweries's Interest Coverage falls into.
East African Breweries 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:
* 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.
East African Breweries (NAI:EABL) has a Interest Coverage of 8.53 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on East African Breweries and its competitors. This is 88% above median its historical median of 4.54. Over the past decade, East African Breweries' Interest Coverage has ranged from 3.66 to 7.00. According to the industry distribution chart, East African Breweries ranks #99 out of 158 companies in the Beverages - Alcoholic industry, placing it in the top 62.7%.
Is East African Breweries' Interest Coverage too high?
East African Breweries' current Interest Coverage of 8.53 is 88% above median its 10-year median of 4.54. Over the past 10 years, this metric has ranged from a low of 3.66 to a high of 7.00. The Beverages - Alcoholic industry median Interest Coverage is 8.56. East African Breweries' value of 8.53 is 0.4% below this industry median. Based on the distribution chart, East African Breweries ranks #99 out of 158 companies in the Beverages - Alcoholic industry, which is below the industry midpoint. Overall, East African Breweries has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does East African Breweries' Interest Coverage compare to BUD and STZ?
According to the Beverages - Alcoholic industry distribution chart, East African Breweries ranks #99 out of 158 companies for Interest Coverage. This places East African Breweries in the lower half of its industry. The industry median Interest Coverage is 8.56. East African Breweries' value of 8.53 is 0.4% below this benchmark. Historically, East African Breweries' own Interest Coverage has ranged from 3.66 to 7.00 over the past decade. While the company's 10-year median is 4.54 vs. the industry median of 8.56, East African Breweries 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 a Beverages - Alcoholic company?
The median Interest Coverage among Beverages - Alcoholic companies is 8.56, based on 158 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. East African Breweries's current Interest Coverage of 8.53 is 0.4% 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 East African Breweries and its competitors. For the Beverages - Alcoholic industry, the median Interest Coverage is 8.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. East African Breweries's current Interest Coverage is 8.53, which is 88% above median its own 10-year median of 4.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is East African Breweries stock overvalued right now?
Based on GuruFocus' analysis, East African Breweries (NAI:EABL) is currently considered Modestly Undervalued. The stock's GF Value™ is KES319.87, compared to a current price of KES268.50 — trading 16.1% below its estimated fair value. The current Interest Coverage is 8.53, which is 88% above median its 10-year median of 4.54 and 0.4% below the Beverages - Alcoholic industry median of 8.56. East African Breweries' overall GF Score™ is 86/100 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 East African Breweries (NAI:EABL), the current Interest Coverage is 8.53 as of Dec. 2025. 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 East African Breweries (NAI:EABL) Overvalued in 2026?
Based on GuruFocus' analysis, East African Breweries stock appears to be undervalued.
The current stock price of KES268.50 is trading 16.1% below its estimated GF Value™ of KES319.87.
GuruFocus considers East African Breweries to be Modestly Undervalued.
Key valuation signals for NAI:EABL:
Interest Coverage: 8.53 (88% above median its 10-year median of 4.54)
GF Value™: KES319.87 vs. price of KES268.50 (16.1% below fair value)
Industry Position: 0.4% below the Beverages - Alcoholic median (#99 of 158)
No single metric tells the full story. See the NAI:EABL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
East African Breweries PLC is a branded alcohol beverage company. The firm and its subsidiaries are involved in the marketing, production, and distribution of a collection of brands that range from beer, spirits, and adult non-alcoholic drinks. The company has invested in breweries, distilleries, support industries, and a distribution network across the region. The firm derives its revenue mainly from brewing, marketing, and selling of drinks, malt, and barley. Its geographical segments include Kenya, Uganda, and Tanzania, of which the majority of the revenue is generated from Kenya.
86GF Score
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