Sleep Cycle ABOSTO:SLEEP +1.63%84 Interest Coverage is 83.10 as of Mar. 2026, which is 65% below its 10-year median of 234.32. GuruFocus rates OSTO:SLEEP with a GF Score™ of 84/100 and a GF Value™ of kr30.25 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,705 Software companies, Sleep Cycle AB ranks better than 72.49% 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. Sleep Cycle AB's
Operating Income
for the
three
months ended in Mar. 2026 was kr6.7 Mil. Sleep Cycle AB's Interest Expense for the
three
months ended in Mar. 2026 was kr-0.1 Mil.
Sleep Cycle AB's interest coverage for the quarter that ended in Mar. 2026 was 83.10.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Sleep Cycle AB has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Sleep Cycle AB's Interest Coverage or its related term are showing as below:
OSTO:SLEEP'
s Interest Coverage Range Over the Past 10 Years
Min: 46.23 Med: 234.32 Max: 459.93
Current: 147.86
OSTO:SLEEP's Interest Coverage is ranked better than 72.49% of 1705
companies
in the Software industry
Industry Median: 24.78
vs OSTO:SLEEP: 147.86
Sleep Cycle AB (OSTO:SLEEP) 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 .
Sleep Cycle AB Interest Coverage Related Terms
Sleep Cycle AB Interest Coverage Historical Data
* Premium members only.
The historical data trend for Sleep Cycle AB'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.
OSTO:SLEEP vs UBER, SHOP, CRM: Interest Coverage Comparison
For the Software - Application subindustry, Sleep Cycle AB'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.
Sleep Cycle AB Interest Coverage vs Software Industry
For the Software industry and Technology sector, Sleep Cycle AB's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Sleep Cycle AB'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.
Sleep Cycle AB (OSTO:SLEEP) has a Interest Coverage of 83.10 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sleep Cycle AB and its competitors. This is 65% below median its historical median of 234.32. Over the past decade, Sleep Cycle AB's Interest Coverage has ranged from 46.23 to 459.93. According to the industry distribution chart, Sleep Cycle AB ranks #469 out of 1705 companies in the Software industry, placing it in the top 27.5%.
Is Sleep Cycle AB's Interest Coverage too high?
Sleep Cycle AB's current Interest Coverage of 83.10 is 65% below median its 10-year median of 234.32. Over the past 10 years, this metric has ranged from a low of 46.23 to a high of 459.93. The Software industry median Interest Coverage is 24.78. Sleep Cycle AB's value of 83.10 is 235.4% above this industry median. Based on the distribution chart, Sleep Cycle AB ranks #469 out of 1705 companies in the Software industry, which is above the industry midpoint. Overall, Sleep Cycle AB has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sleep Cycle AB's Interest Coverage compare to UBER and SHOP?
According to the Software industry distribution chart, Sleep Cycle AB ranks #469 out of 1705 companies for Interest Coverage. This puts Sleep Cycle AB in the upper half of its industry. The industry median Interest Coverage is 24.78. Sleep Cycle AB's value of 83.10 is 235.4% above this benchmark. Historically, Sleep Cycle AB's own Interest Coverage has ranged from 46.23 to 459.93 over the past decade. While the company's 10-year median is 234.32 vs. the industry median of 24.78, Sleep Cycle AB 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 Software company?
The median Interest Coverage among Software companies is 24.78, based on 1,705 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. Sleep Cycle AB's current Interest Coverage of 83.10 is 235.4% 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 Sleep Cycle AB and its competitors. For the Software industry, the median Interest Coverage is 24.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sleep Cycle AB's current Interest Coverage is 83.10, which is 65% below median its own 10-year median of 234.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sleep Cycle AB stock overvalued right now?
Based on GuruFocus' analysis, Sleep Cycle AB (OSTO:SLEEP) is currently considered Modestly Undervalued. The stock's GF Value™ is kr30.25, compared to a current price of kr24.95 — trading 17.5% below its estimated fair value. The current Interest Coverage is 83.10, which is 65% below median its 10-year median of 234.32 and 235.4% above the Software industry median of 24.78. Sleep Cycle AB's overall GF Score™ is 84/100 with 7 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 Sleep Cycle AB (OSTO:SLEEP), the current Interest Coverage is 83.10 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 Sleep Cycle AB (OSTO:SLEEP) Overvalued in 2026?
Based on GuruFocus' analysis, Sleep Cycle AB stock appears to be undervalued.
The current stock price of kr24.95 is trading 17.5% below its estimated GF Value™ of kr30.25.
GuruFocus considers Sleep Cycle AB to be Modestly Undervalued.
Key valuation signals for OSTO:SLEEP:
Interest Coverage: 83.10 (65% below median its 10-year median of 234.32)
GF Value™: kr30.25 vs. price of kr24.95 (17.5% below fair value)
Industry Position: 235.4% above the Software median (#469 of 1705)
No single metric tells the full story. See the OSTO:SLEEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sleep Cycle AB is a sleep tracker application. It helps people understand their sleep habits and improve their sleep. The mobile application helps users fall asleep more easily, tracks sleep patterns through the night and wakes up users in the light-sleep phase, providing valuable insights designed to improve sleep quality. Geographically group operates in Sweden and other countries in which all of revenue is generated from Sweden.
84GF Score
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