Swisscom AGSTU:SWJA -0.72%76 Interest Coverage is 6.14 as of Mar. 2026, which is 58% below its 10-year median of 14.74. GuruFocus rates STU:SWJA with a GF Score™ of 76/100 and a GF Value™ of €73.83 (Fairly Valued). The stock has 6 warning signs investors should review. Among 286 Telecommunication Services companies, Swisscom AG ranks better than 54.2% 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. Swisscom AG's
Operating Income
for the
three
months ended in Mar. 2026 was €567 Mil. Swisscom AG's Interest Expense for the
three
months ended in Mar. 2026 was €-92 Mil.
Swisscom AG's interest coverage for the quarter that ended in Mar. 2026 was 6.14.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Swisscom AG's Interest Coverage or its related term are showing as below:
STU:SWJA'
s Interest Coverage Range Over the Past 10 Years
Min: 5.32 Med: 14.74 Max: 16.83
Current: 5.38
STU:SWJA's Interest Coverage is ranked better than 54.2% of 286
companies
in the Telecommunication Services industry
Industry Median: 4.715
vs STU:SWJA: 5.38
Swisscom AG (STU:SWJA) 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 .
Swisscom AG Interest Coverage Related Terms
Swisscom AG Interest Coverage Historical Data
* Premium members only.
The historical data trend for Swisscom AG'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:SWJA vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, Swisscom AG'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.
Swisscom AG Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Swisscom AG's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Swisscom AG'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.
Swisscom AG (STU:SWJA) has a Interest Coverage of 6.14 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Swisscom AG and its competitors. This is 58% below median its historical median of 14.74. Over the past decade, Swisscom AG's Interest Coverage has ranged from 5.32 to 16.83. According to the industry distribution chart, Swisscom AG ranks #131 out of 286 companies in the Telecommunication Services industry, placing it in the top 45.8%.
Is Swisscom AG's Interest Coverage too high?
Swisscom AG's current Interest Coverage of 6.14 is 58% below median its 10-year median of 14.74. Over the past 10 years, this metric has ranged from a low of 5.32 to a high of 16.83. The Telecommunication Services industry median Interest Coverage is 4.72. Swisscom AG's value of 6.14 is 30.2% above this industry median. Based on the distribution chart, Swisscom AG ranks #131 out of 286 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Swisscom AG has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Swisscom AG's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Swisscom AG ranks #131 out of 286 companies for Interest Coverage. This puts Swisscom AG in the upper half of its industry. The industry median Interest Coverage is 4.72. Swisscom AG's value of 6.14 is 30.2% above this benchmark. Historically, Swisscom AG's own Interest Coverage has ranged from 5.32 to 16.83 over the past decade. While the company's 10-year median is 14.74 vs. the industry median of 4.72, Swisscom AG 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 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. Swisscom AG's current Interest Coverage of 6.14 is 30.2% 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 Swisscom AG 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. Swisscom AG's current Interest Coverage is 6.14, which is 58% below median its own 10-year median of 14.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Swisscom AG stock overvalued right now?
Based on GuruFocus' analysis, Swisscom AG (STU:SWJA) is currently considered Fairly Valued. The stock's GF Value™ is €73.83, compared to a current price of €68.50 — trading 7.2% below its estimated fair value. The current Interest Coverage is 6.14, which is 58% below median its 10-year median of 14.74 and 30.2% above the Telecommunication Services industry median of 4.72. Swisscom AG's overall GF Score™ is 76/100 with 6 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 Swisscom AG (STU:SWJA), the current Interest Coverage is 6.14 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 Swisscom AG (STU:SWJA) Overvalued in 2026?
Based on GuruFocus' analysis, Swisscom AG stock appears to be undervalued.
The current stock price of €68.50 is trading 7.2% below its estimated GF Value™ of €73.83.
GuruFocus considers Swisscom AG to be Fairly Valued.
Key valuation signals for STU:SWJA:
Interest Coverage: 6.14 (58% below median its 10-year median of 14.74)
GF Value™: €73.83 vs. price of €68.50 (7.2% below fair value)
Industry Position: 30.2% above the Telecommunication Services median (#131 of 286)
No single metric tells the full story. See the STU:SWJA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swisscom is the incumbent telecom operator in Switzerland, with a very high market share in mobile and fixed-line markets. It charges high prices compared with its competitors and other European peers due to the historical stability of the Swiss telecom market and a favorable regulatory environment. In 2024, Swisscom acquired Vodafone Italia in a deal worth EUR 8 billion.
76GF Score
Get the complete analysis for STU:SWJA
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