Caesars EntertainmentSTU:2ER -0.73%76 Interest Coverage is 0.88 as of Mar. 2026, which is 14% below its 10-year median of 1.02. GuruFocus rates STU:2ER with a GF Score™ of 76/100 and a GF Value™ of €33.76 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 611 Travel & Leisure companies, Caesars Entertainment ranks worse than 90.18% 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. Caesars Entertainment's
Operating Income
for the
three
months ended in Mar. 2026 was €436 Mil. Caesars Entertainment's Interest Expense for the
three
months ended in Mar. 2026 was €-494 Mil.
Caesars Entertainment's interest coverage for the quarter that ended in Mar. 2026 was 0.88.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Caesars Entertainment Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Caesars Entertainment's Interest Coverage or its related term are showing as below:
STU:2ER'
s Interest Coverage Range Over the Past 10 Years
Min: 0.08 Med: 1.02 Max: 2.07
Current: 0.9
STU:2ER's Interest Coverage is ranked worse than 90.18% of 611
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs STU:2ER: 0.90
Caesars Entertainment (STU:2ER) 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 .
Caesars Entertainment Interest Coverage Related Terms
Caesars Entertainment Interest Coverage Historical Data
* Premium members only.
The historical data trend for Caesars Entertainment'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.
STU:2ER vs BYD, MTN, HGV: Interest Coverage Comparison
For the Resorts & Casinos subindustry, Caesars Entertainment'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.
Caesars Entertainment Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Caesars Entertainment's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Caesars Entertainment's Interest Coverage falls into.
Caesars Entertainment 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.
Caesars Entertainment (STU:2ER) has a Interest Coverage of 0.88 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Caesars Entertainment and its competitors. This is 14% below median its historical median of 1.02. Over the past decade, Caesars Entertainment's Interest Coverage has ranged from 0.08 to 2.07. According to the industry distribution chart, Caesars Entertainment ranks #551 out of 611 companies in the Travel & Leisure industry, placing it in the top 90.2%.
Is Caesars Entertainment's Interest Coverage too high?
Caesars Entertainment's current Interest Coverage of 0.88 is 14% below median its 10-year median of 1.02. Over the past 10 years, this metric has ranged from a low of 0.08 to a high of 2.07. The Travel & Leisure industry median Interest Coverage is 5.35. Caesars Entertainment's value of 0.88 is 83.6% below this industry median. Based on the distribution chart, Caesars Entertainment ranks #551 out of 611 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Caesars Entertainment has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Caesars Entertainment's Interest Coverage compare to BYD and MTN?
According to the Travel & Leisure industry distribution chart, Caesars Entertainment ranks #551 out of 611 companies for Interest Coverage. This places Caesars Entertainment in the lower half of its industry. The industry median Interest Coverage is 5.35. Caesars Entertainment's value of 0.88 is 83.6% below this benchmark. Historically, Caesars Entertainment's own Interest Coverage has ranged from 0.08 to 2.07 over the past decade. While the company's 10-year median is 1.02 vs. the industry median of 5.35, Caesars Entertainment 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 Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 611 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. Caesars Entertainment's current Interest Coverage of 0.88 is 83.6% 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 Caesars Entertainment and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Caesars Entertainment's current Interest Coverage is 0.88, which is 14% below median its own 10-year median of 1.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Caesars Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Caesars Entertainment (STU:2ER) is currently considered Modestly Undervalued. The stock's GF Value™ is €33.76, compared to a current price of €26.49 — trading 21.5% below its estimated fair value. The current Interest Coverage is 0.88, which is 14% below median its 10-year median of 1.02 and 83.6% below the Travel & Leisure industry median of 5.35. Caesars Entertainment's overall GF Score™ is 76/100 with 8 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 Caesars Entertainment (STU:2ER), the current Interest Coverage is 0.88 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 Caesars Entertainment (STU:2ER) Overvalued in 2026?
Based on GuruFocus' analysis, Caesars Entertainment stock appears to be undervalued.
The current stock price of €26.49 is trading 21.5% below its estimated GF Value™ of €33.76.
GuruFocus considers Caesars Entertainment to be Modestly Undervalued.
Key valuation signals for STU:2ER:
Interest Coverage: 0.88 (14% below median its 10-year median of 1.02)
GF Value™: €33.76 vs. price of €26.49 (21.5% below fair value)
Industry Position: 83.6% below the Travel & Leisure median (#551 of 611)
No single metric tells the full story. See the STU:2ER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Caesars Entertainment's stand-alone portfolio includes about 50 domestic gaming properties across the Las Vegas (48% of 2025 EBITDAR) and regional (49%) markets. Additionally, the company hosts managed properties and digital assets that produced marginal EBITDA in 2025. Caesars' US presence roughly doubled with the 2020 acquisition by Eldorado, which built its first casino in Reno, Nevada, in 1973. Caesars' brands include Caesars, Harrah's, Tropicana, Bally's, Isle, and Flamingo. Also, the company owns the US portion of William Hill (it sold the international operation in 2022), a digital sports betting platform. The portfolio is set to expand to more than 60 casinos with the proposed acquisition of Caesars by Fertitta Entertainment and its Golden Nugget resorts.
76GF Score
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