Cathay Real Estate Development Co (TPE:2501) Interest Coverage: 16.94 (As of Dec. 2025) — 164% Above Median


TPE:2501 Cathay Real Estate Development Co Ltd TPE:2501
85 GF Score
Price NT$24.75
GF Value NT$25.43
Valuation Fairly Valued
! 7 Warning Signs
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What is Cathay Real Estate Development Co Interest Coverage?

Cathay Real Estate Development Co TPE:2501 +2.06% 85 Interest Coverage is 16.94 as of Dec. 2025, which is 164% above its 10-year median of 6.42. GuruFocus rates TPE:2501 with a GF Score™ of 85/100 and a GF Value™ of NT$25.43 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,301 Real Estate companies, Cathay Real Estate Development Co ranks better than 67.72% 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. Cathay Real Estate Development Co's Operating Income for the three months ended in Dec. 2025 was NT$1,510 Mil. Cathay Real Estate Development Co's Interest Expense for the three months ended in Dec. 2025 was NT$-89 Mil. Cathay Real Estate Development Co's interest coverage for the quarter that ended in Dec. 2025 was 16.94. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Cathay Real Estate Development Co's Interest Coverage or its related term are showing as below:

TPE:2501' s Interest Coverage Range Over the Past 10 Years
Min: 3.49   Med: 6.42   Max: 16.69
Current: 9.24

TPE:2501's Interest Coverage is ranked better than
67.72% of 1301 companies
in the Real Estate industry
Industry Median: 4.24 vs TPE:2501: 9.24

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Cathay Real Estate Development Co  (TPE:2501) 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 .

Cathay Real Estate Development Co Interest Coverage Related Terms

Cathay Real Estate Development Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Cathay Real Estate Development Co'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.

Cathay Real Estate Development Co Interest Coverage Chart

Cathay Real Estate Development Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.49 3.66 5.78 4.94 9.24

Cathay Real Estate Development Co Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.16 2.75 14.60 5.01 16.94

Cathay Real Estate Development Co Interest Coverage Competitor Comparison

For the Real Estate - Development subindustry, Cathay Real Estate Development Co'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.

Cathay Real Estate Development Co Interest Coverage vs Real Estate Industry

For the Real Estate industry and Real Estate sector, Cathay Real Estate Development Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Cathay Real Estate Development Co's Interest Coverage falls into.


TPE:2501
85GF Score
Cathay Real Estate Development Co Ltd TPE:2501
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Cathay Real Estate Development Co 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Cathay Real Estate Development Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Cathay Real Estate Development Co's Interest Expense was NT$-450 Mil. Its Operating Income was NT$4,158 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$14,969 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*4157.93/-450.009
=9.24

Cathay Real Estate Development Co's Interest Coverage for the quarter that ended in Dec. 2025 is calculated as

Here, for the three months ended in Dec. 2025, Cathay Real Estate Development Co's Interest Expense was NT$-89 Mil. Its Operating Income was NT$1,510 Mil. And its Long-Term Debt & Capital Lease Obligation was NT$14,969 Mil.

Interest Coverage=-1* Operating Income (Q: Dec. 2025 )/Interest Expense (Q: Dec. 2025 )
=-1*1510.312/-89.155
=16.94

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 16.94 mean?
Cathay Real Estate Development Co (TPE:2501) has a Interest Coverage of 16.94 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Cathay Real Estate Development Co and its competitors. This is 164% above median its historical median of 6.42. Over the past decade, Cathay Real Estate Development Co's Interest Coverage has ranged from 3.49 to 16.69. According to the industry distribution chart, Cathay Real Estate Development Co ranks #420 out of 1301 companies in the Real Estate industry, placing it in the top 32.3%.
Is Cathay Real Estate Development Co's Interest Coverage too high?
Cathay Real Estate Development Co's current Interest Coverage of 16.94 is 164% above median its 10-year median of 6.42. Over the past 10 years, this metric has ranged from a low of 3.49 to a high of 16.69. The Real Estate industry median Interest Coverage is 4.24. Cathay Real Estate Development Co's value of 16.94 is 299.5% above this industry median. Based on the distribution chart, Cathay Real Estate Development Co ranks #420 out of 1301 companies in the Real Estate industry, which is above the industry midpoint. Overall, Cathay Real Estate Development Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cathay Real Estate Development Co's Interest Coverage compare to competitors?
According to the Real Estate industry distribution chart, Cathay Real Estate Development Co ranks #420 out of 1301 companies for Interest Coverage. This puts Cathay Real Estate Development Co in the upper half of its industry. The industry median Interest Coverage is 4.24. Cathay Real Estate Development Co's value of 16.94 is 299.5% above this benchmark. Historically, Cathay Real Estate Development Co's own Interest Coverage has ranged from 3.49 to 16.69 over the past decade. While the company's 10-year median is 6.42 vs. the industry median of 4.24, Cathay Real Estate Development Co 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 Real Estate company?
The median Interest Coverage among Real Estate companies is 4.24, based on 1,301 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. Cathay Real Estate Development Co's current Interest Coverage of 16.94 is 299.5% 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 Cathay Real Estate Development Co and its competitors. For the Real Estate industry, the median Interest Coverage is 4.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Real Estate Development Co's current Interest Coverage is 16.94, which is 164% above median its own 10-year median of 6.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Real Estate Development Co stock overvalued right now?
Based on GuruFocus' analysis, Cathay Real Estate Development Co (TPE:2501) is currently considered Fairly Valued. The stock's GF Value™ is NT$25.43, compared to a current price of NT$24.75 — trading 2.7% below its estimated fair value. The current Interest Coverage is 16.94, which is 164% above median its 10-year median of 6.42 and 299.5% above the Real Estate industry median of 4.24. Cathay Real Estate Development Co's overall GF Score™ is 85/100 with 7 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 Cathay Real Estate Development Co (TPE:2501), the current Interest Coverage is 16.94 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 Cathay Real Estate Development Co (TPE:2501) Overvalued in 2026?

Based on GuruFocus' analysis, Cathay Real Estate Development Co stock appears to be undervalued. The current stock price of NT$24.75 is trading 2.7% below its estimated GF Value™ of NT$25.43. GuruFocus considers Cathay Real Estate Development Co to be Fairly Valued.

Key valuation signals for TPE:2501:

  • Interest Coverage: 16.94 (164% above median its 10-year median of 6.42)
  • GF Value™: NT$25.43 vs. price of NT$24.75 (2.7% below fair value)
  • GF Score™: 85/100 with 7 warning signs
  • Industry Position: 299.5% above the Real Estate median (#420 of 1301)

No single metric tells the full story. See the TPE:2501 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Cathay Real Estate Development Co Business Description

Address Dunhua South Road, 2nd Floor, No. 218, Section 2, Da’an District, Taipei City, TWN, 106
Cathay Real Estate Development Co Ltd is engaged in commissioning contractors to build residential and commercial buildings for leasing and selling, and provides services in real estate, health management, tourism, and hospitality in Taiwan and around the world. The Group operates through the Property and Real Estate Development department, which generates maximum revenue and is responsible for commissioning construction contractors to build residential and commercial buildings for lease or sale, and equipment leasing operations, and the Construction department, which is engaged in construction contracting and construction management. Its projects include Urban Harmony in Taipei City and Taoyuan City, Park Front Row and Cathay Grand Park in Taoyuan City, and others.
85GF Score

Get the complete analysis for TPE:2501

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$24.75
Price
NT$25.43
GF Value