Telstra GroupTLGPY 74 Interest Coverage is 5.47 as of Dec. 2025, which is 12% above its 10-year median of 4.89. GuruFocus rates TLGPY with a GF Score™ of 74/100 and a GF Value™ of $15.94 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 286 Telecommunication Services companies, Telstra Group ranks better than 56.29% 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. Telstra Group's
Operating Income
for the
six
months ended in Dec. 2025 was $1,076 Mil. Telstra Group's Interest Expense for the
six
months ended in Dec. 2025 was $-197 Mil.
Telstra Group's interest coverage for the quarter that ended in Dec. 2025 was 5.47.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Telstra Group's Interest Coverage or its related term are showing as below:
TLGPY'
s Interest Coverage Range Over the Past 10 Years
Min: 0.86 Med: 4.89 Max: 7.08
Current: 5.77
TLGPY's Interest Coverage is ranked better than 56.29% of 286
companies
in the Telecommunication Services industry
Industry Median: 4.715
vs TLGPY: 5.77
Telstra Group (OTCPK:TLGPY) 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 .
Telstra Group Interest Coverage Related Terms
Telstra Group Interest Coverage Historical Data
* Premium members only.
The historical data trend for Telstra Group'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.
TLGPY vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, Telstra Group'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.
Telstra Group Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Telstra Group'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.
Telstra Group (TLGPY) has a Interest Coverage of 5.47 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Telstra Group and its competitors. This is 12% above median its historical median of 4.89. Over the past decade, Telstra Group's Interest Coverage has ranged from 0.86 to 7.08. According to the industry distribution chart, Telstra Group ranks #125 out of 286 companies in the Telecommunication Services industry, placing it in the top 43.7%.
Is Telstra Group's Interest Coverage too high?
Telstra Group's current Interest Coverage of 5.47 is 12% above median its 10-year median of 4.89. Over the past 10 years, this metric has ranged from a low of 0.86 to a high of 7.08. The Telecommunication Services industry median Interest Coverage is 4.72. Telstra Group's value of 5.47 is 16% above this industry median. Based on the distribution chart, Telstra Group ranks #125 out of 286 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telstra Group has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telstra Group's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telstra Group ranks #125 out of 286 companies for Interest Coverage. This puts Telstra Group in the upper half of its industry. The industry median Interest Coverage is 4.72. Telstra Group's value of 5.47 is 16% above this benchmark. Historically, Telstra Group's own Interest Coverage has ranged from 0.86 to 7.08 over the past decade. While the company's 10-year median is 4.89 vs. the industry median of 4.72, Telstra Group 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. Telstra Group's current Interest Coverage of 5.47 is 16% 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 Telstra Group 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. Telstra Group's current Interest Coverage is 5.47, which is 12% above median its own 10-year median of 4.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telstra Group stock overvalued right now?
Based on GuruFocus' analysis, Telstra Group (TLGPY) is currently considered Modestly Overvalued. The stock's GF Value™ is $15.94, compared to a current price of $17.63 — trading 10.6% above its estimated fair value. The current Interest Coverage is 5.47, which is 12% above median its 10-year median of 4.89 and 16% above the Telecommunication Services industry median of 4.72. Telstra Group's overall GF Score™ is 74/100 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 Telstra Group (TLGPY), the current Interest Coverage is 5.47 as of Dec. 2025. 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 Telstra Group (TLGPY) Overvalued in 2026?
Based on GuruFocus' analysis, Telstra Group stock appears to be overvalued.
The current stock price of $17.63 is trading 10.6% above its estimated GF Value™ of $15.94.
GuruFocus considers Telstra Group to be Modestly Overvalued.
Key valuation signals for TLGPY:
Interest Coverage: 5.47 (12% above median its 10-year median of 4.89)
GF Value™: $15.94 vs. price of $17.63 (10.6% above fair value)
Industry Position: 16% above the Telecommunication Services median (#125 of 286)
No single metric tells the full story. See the TLGPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telstra is Australia's largest telecommunications company, with dominant market shares in voice, mobile, enterprise telecom, and fixed-line broadband resale via the national broadband network. Telstra provides most of its services via its infrastructure assets, such as a fixed-line network (data centers, exchanges, poles, ducts, pits and pipes, fiber network), a mobile network, and mobile towers. Its customers span retail, corporate, government, wholesale, and overseas segments. Telstra also provides the government-owned, last-mile fixed-line National Broadband Network with long-term access to its infrastructure, in return for recurring payments. Finally, Telstra operates a leading telecom operation in Papua New Guinea and the surrounding South-Pacific countries.
74GF Score
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