PagSeguro DigitalPAGS +0.11%90 Interest Coverage is 1.50 as of Mar. 2026, which is 52% below its 10-year median of 3.12. GuruFocus rates PAGS with a GF Score™ of 90/100 and a GF Value™ of $11.93 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,706 Software companies, PagSeguro Digital ranks worse than 90.8% 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. PagSeguro Digital's
Operating Income
for the
three
months ended in Mar. 2026 was $384 Mil. PagSeguro Digital's Interest Expense for the
three
months ended in Mar. 2026 was $-256 Mil.
PagSeguro Digital's interest coverage for the quarter that ended in Mar. 2026 was 1.50.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for PagSeguro Digital's Interest Coverage or its related term are showing as below:
PAGS'
s Interest Coverage Range Over the Past 10 Years
Min: 1.67 Med: 3.12 Max: 51.2
Current: 1.92
PAGS's Interest Coverage is ranked worse than 90.8% of 1706
companies
in the Software industry
Industry Median: 24.695
vs PAGS: 1.92
PagSeguro Digital (NYSE:PAGS) 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 .
PagSeguro Digital Interest Coverage Related Terms
PagSeguro Digital Interest Coverage Historical Data
* Premium members only.
The historical data trend for PagSeguro 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.
PAGS vs CALX, EEFT, STNE: Interest Coverage Comparison
For the Software - Infrastructure subindustry, PagSeguro 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.
PagSeguro Digital Interest Coverage vs Software Industry
For the Software industry and Technology sector, PagSeguro Digital's Interest Coverage distribution charts can be found below:
* The bar in red indicates where PagSeguro 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.
PagSeguro Digital (PAGS) has a Interest Coverage of 1.50 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PagSeguro Digital and its competitors. This is 52% below median its historical median of 3.12. Over the past decade, PagSeguro Digital's Interest Coverage has ranged from 1.67 to 51.20. According to the industry distribution chart, PagSeguro Digital ranks #1549 out of 1706 companies in the Software industry, placing it in the top 90.8%.
Is PagSeguro Digital's Interest Coverage too high?
PagSeguro Digital's current Interest Coverage of 1.50 is 52% below median its 10-year median of 3.12. Over the past 10 years, this metric has ranged from a low of 1.67 to a high of 51.20. The Software industry median Interest Coverage is 24.70. PagSeguro Digital's value of 1.50 is 93.9% below this industry median. Based on the distribution chart, PagSeguro Digital ranks #1549 out of 1706 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, PagSeguro Digital has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PagSeguro Digital's Interest Coverage compare to CALX and EEFT?
According to the Software industry distribution chart, PagSeguro Digital ranks #1549 out of 1706 companies for Interest Coverage. This places PagSeguro Digital in the lower half of its industry. The industry median Interest Coverage is 24.70. PagSeguro Digital's value of 1.50 is 93.9% below this benchmark. Historically, PagSeguro Digital's own Interest Coverage has ranged from 1.67 to 51.20 over the past decade. While the company's 10-year median is 3.12 vs. the industry median of 24.70, PagSeguro Digital 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 Software company?
The median Interest Coverage among Software companies is 24.70, based on 1,706 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. PagSeguro Digital's current Interest Coverage of 1.50 is 93.9% 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 PagSeguro Digital and its competitors. For the Software industry, the median Interest Coverage is 24.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PagSeguro Digital's current Interest Coverage is 1.50, which is 52% below median its own 10-year median of 3.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PagSeguro Digital stock overvalued right now?
Based on GuruFocus' analysis, PagSeguro Digital (PAGS) is currently considered Modestly Undervalued. The stock's GF Value™ is $11.93, compared to a current price of $8.77 — trading 26.5% below its estimated fair value. The current Interest Coverage is 1.50, which is 52% below median its 10-year median of 3.12 and 93.9% below the Software industry median of 24.70. PagSeguro Digital's overall GF Score™ is 90/100 with 3 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 PagSeguro Digital (PAGS), the current Interest Coverage is 1.50 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 PagSeguro Digital (PAGS) Overvalued in 2026?
Based on GuruFocus' analysis, PagSeguro Digital stock appears to be undervalued.
The current stock price of $8.77 is trading 26.5% below its estimated GF Value™ of $11.93.
GuruFocus considers PagSeguro Digital to be Modestly Undervalued.
Key valuation signals for PAGS:
Interest Coverage: 1.50 (52% below median its 10-year median of 3.12)
GF Value™: $11.93 vs. price of $8.77 (26.5% below fair value)
Industry Position: 93.9% below the Software median (#1549 of 1706)
No single metric tells the full story. See the PAGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PagSeguro Digital Ltd is a Brazilian-based company that acts as a provider of financial technology solutions focused on Micro-Merchants, Small Companies and Medium-Sized Companies (SMEs), in Brazil. The company provides a range of solutions and tools such as cash-in and cash-out options and provides access to working capital to help to manage its cash flow. It delivers an end-to-end digital ecosystem to address day-to-day financial needs, including receiving and spending funds and managing and growing businesses for clients. The company also offers the Free PagSeguro Digital Account delivering Cash-In Solutions, Online and In-Person Payment Tools, Online Payment Tools; and Web Check Outs offer tokenization, handling of shipping information, and others.
90GF Score
Get the complete analysis for PAGS
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
PAGS has been successfully added to your 
