Telefonica BrasilSTU:TSPA +0.86%85 Interest Coverage is 3.00 as of Mar. 2026, which is 90% below its 10-year median of 29.20. GuruFocus rates STU:TSPA with a GF Score™ of 85/100 and a GF Value™ of €10.57 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 284 Telecommunication Services companies, Telefonica Brasil ranks better than 61.62% 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. Telefonica Brasil's
Operating Income
for the
three
months ended in Mar. 2026 was €413 Mil. Telefonica Brasil's Interest Expense for the
three
months ended in Mar. 2026 was €-138 Mil.
Telefonica Brasil's interest coverage for the quarter that ended in Mar. 2026 was 3.00.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Telefonica Brasil's Interest Coverage or its related term are showing as below:
STU:TSPA'
s Interest Coverage Range Over the Past 10 Years
Min: 7.03 Med: 29.2 Max: 53.91
Current: 7.03
STU:TSPA's Interest Coverage is ranked better than 61.62% of 284
companies
in the Telecommunication Services industry
Industry Median: 4.685
vs STU:TSPA: 7.03
Telefonica Brasil (STU:TSPA) 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 .
Telefonica Brasil Interest Coverage Related Terms
Telefonica Brasil Interest Coverage Historical Data
* Premium members only.
The historical data trend for Telefonica Brasil'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:TSPA vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, Telefonica Brasil'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.
Telefonica Brasil Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Telefonica Brasil'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.
Telefonica Brasil (STU:TSPA) has a Interest Coverage of 3.00 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Telefonica Brasil and its competitors. This is 90% below median its historical median of 29.20. Over the past decade, Telefonica Brasil's Interest Coverage has ranged from 7.03 to 53.91. According to the industry distribution chart, Telefonica Brasil ranks #109 out of 284 companies in the Telecommunication Services industry, placing it in the top 38.4%.
Is Telefonica Brasil's Interest Coverage too high?
Telefonica Brasil's current Interest Coverage of 3.00 is 90% below median its 10-year median of 29.20. Over the past 10 years, this metric has ranged from a low of 7.03 to a high of 53.91. The Telecommunication Services industry median Interest Coverage is 4.69. Telefonica Brasil's value of 3.00 is 36% below this industry median. Based on the distribution chart, Telefonica Brasil ranks #109 out of 284 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telefonica Brasil has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonica Brasil's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica Brasil ranks #109 out of 284 companies for Interest Coverage. This puts Telefonica Brasil in the upper half of its industry. The industry median Interest Coverage is 4.69. Telefonica Brasil's value of 3.00 is 36% below this benchmark. Historically, Telefonica Brasil's own Interest Coverage has ranged from 7.03 to 53.91 over the past decade. While the company's 10-year median is 29.20 vs. the industry median of 4.69, Telefonica Brasil 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 Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.69, based on 284 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. Telefonica Brasil's current Interest Coverage of 3.00 is 36% 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 Telefonica Brasil and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonica Brasil's current Interest Coverage is 3.00, which is 90% below median its own 10-year median of 29.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonica Brasil stock overvalued right now?
Based on GuruFocus' analysis, Telefonica Brasil (STU:TSPA) is currently considered Modestly Overvalued. The stock's GF Value™ is €10.57, compared to a current price of €11.70 — trading 10.7% above its estimated fair value. The current Interest Coverage is 3.00, which is 90% below median its 10-year median of 29.20 and 36% below the Telecommunication Services industry median of 4.69. Telefonica Brasil's overall GF Score™ is 85/100 with 2 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 Telefonica Brasil (STU:TSPA), the current Interest Coverage is 3.00 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 Telefonica Brasil (STU:TSPA) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica Brasil stock appears to be overvalued.
The current stock price of €11.70 is trading 10.7% above its estimated GF Value™ of €10.57.
GuruFocus considers Telefonica Brasil to be Modestly Overvalued.
Key valuation signals for STU:TSPA:
Interest Coverage: 3.00 (90% below median its 10-year median of 29.20)
GF Value™: €10.57 vs. price of €11.70 (10.7% above fair value)
Industry Position: 36% below the Telecommunication Services median (#109 of 284)
No single metric tells the full story. See the STU:TSPA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 103 million customers, which is equal to about 38% market share. The firm is strongest in the postpaid business, where it has 72 million customers, or about 40% share of this market. Wireless services and equipment contribute about 70% of total revenue. Vivo is the incumbent fixed-line telephone operator in Sao Paulo state and also owns an extensive fiber network across the country. The firm provides internet access to 8 million households on this network. The firm also sells pay-TV and phone services to its fixed-line customers. Finally, corporate data and IT services, including cloud computing support, contribute about 10% of total revenue.
85GF Score
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