Ambassador HotelTPE:2704 +0.11%73 Interest Coverage is 0.17 as of Dec. 2025, which is 100% below its 10-year median of 54.60. GuruFocus rates TPE:2704 with a GF Score™ of 73/100 and a GF Value™ of NT$48.81 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 607 Travel & Leisure companies, Ambassador Hotel ranks worse than 164744.48% 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. Ambassador Hotel's
Operating Income
for the
three
months ended in Dec. 2025 was NT$2 Mil. Ambassador Hotel's Interest Expense for the
three
months ended in Dec. 2025 was NT$-13 Mil.
Ambassador Hotel's interest coverage for the quarter that ended in Dec. 2025 was 0.17.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Ambassador Hotel's Interest Coverage or its related term are showing as below:
TPE:2704's Interest Coverage is not ranked *
in the Travel & Leisure industry.
Industry Median: 5.35 * Ranked among companies with meaningful Interest Coverage only.
Ambassador Hotel (TPE:2704) 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 .
Ambassador Hotel Interest Coverage Related Terms
Ambassador Hotel Interest Coverage Historical Data
* Premium members only.
The historical data trend for Ambassador Hotel'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.
TPE:2704 vs MAR, HLT, H: Interest Coverage Comparison
For the Lodging subindustry, Ambassador Hotel'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.
Ambassador Hotel Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Ambassador Hotel's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Ambassador Hotel'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.
Ambassador Hotel (TPE:2704) has a Interest Coverage of 0.17 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Ambassador Hotel and its competitors. This is 100% below median its historical median of 54.60. According to the industry distribution chart, Ambassador Hotel ranks #999999 out of 607 companies in the Travel & Leisure industry.
Is Ambassador Hotel's Interest Coverage too high?
Ambassador Hotel's current Interest Coverage of 0.17 is 100% below median its 10-year median of 54.60. The Travel & Leisure industry median Interest Coverage is 5.35. Ambassador Hotel's value of 0.17 is 96.8% below this industry median. Based on the distribution chart, Ambassador Hotel ranks #999999 out of 607 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Ambassador Hotel has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ambassador Hotel's Interest Coverage compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Ambassador Hotel ranks #999999 out of 607 companies for Interest Coverage. This places Ambassador Hotel in the lower half of its industry. The industry median Interest Coverage is 5.35. Ambassador Hotel's value of 0.17 is 96.8% below this benchmark. While the company's 10-year median is 54.60 vs. the industry median of 5.35, Ambassador Hotel 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 607 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. Ambassador Hotel's current Interest Coverage of 0.17 is 96.8% 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 Ambassador Hotel 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. Ambassador Hotel's current Interest Coverage is 0.17, which is 100% below median its own 10-year median of 54.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambassador Hotel stock overvalued right now?
Based on GuruFocus' analysis, Ambassador Hotel (TPE:2704) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$48.81, compared to a current price of NT$43.85 — trading 10.2% below its estimated fair value. The current Interest Coverage is 0.17, which is 100% below median its 10-year median of 54.60 and 96.8% below the Travel & Leisure industry median of 5.35. Ambassador Hotel's overall GF Score™ is 73/100 with 5 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 Ambassador Hotel (TPE:2704), the current Interest Coverage is 0.17 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 Ambassador Hotel (TPE:2704) Overvalued in 2026?
Based on GuruFocus' analysis, Ambassador Hotel stock appears to be undervalued.
The current stock price of NT$43.85 is trading 10.2% below its estimated GF Value™ of NT$48.81.
GuruFocus considers Ambassador Hotel to be Modestly Undervalued.
Key valuation signals for TPE:2704:
Interest Coverage: 0.17 (100% below median its 10-year median of 54.60)
GF Value™: NT$48.81 vs. price of NT$43.85 (10.2% below fair value)
Industry Position: 96.8% below the Travel & Leisure median (#999999 of 607)
No single metric tells the full story. See the TPE:2704 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambassador Hotel Ltd is engaged in the operation of international tourist hotels and attached restaurants, cafe, lounge bars and clubs. The company provides accommodation and foodservice related products. The company has three segment: Kaohsiung segment, Hsinchu segment, and Taipei segment. The company generates key revenue from Hsinchu segment. Hsinchu segment is responsible for the foodservice and accommodation in Hsinchu area.
73GF Score
Get the complete analysis for TPE:2704
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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