First Hotel CoTPE:2706 85 Interest Coverage is 125.70 as of Dec. 2025, which is 5% below its 10-year median of 131.78. GuruFocus rates TPE:2706 with a GF Score™ of 85/100 and a GF Value™ of NT$17.26 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,305 Real Estate companies, First Hotel Co ranks better than 87.2% 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. First Hotel Co's
Operating Income
for the
three
months ended in Dec. 2025 was NT$65.2 Mil. First Hotel Co's Interest Expense for the
three
months ended in Dec. 2025 was NT$-0.5 Mil.
First Hotel Co's interest coverage for the quarter that ended in Dec. 2025 was 125.70.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. First Hotel Co Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for First Hotel Co's Interest Coverage or its related term are showing as below:
TPE:2706'
s Interest Coverage Range Over the Past 10 Years
Min: 99.22 Med: 131.78 Max: 211.7
Current: 126
TPE:2706's Interest Coverage is ranked better than 87.2% of 1305
companies
in the Real Estate industry
Industry Median: 4.24
vs TPE:2706: 126.00
First Hotel Co (TPE:2706) 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 .
First Hotel Co Interest Coverage Related Terms
First Hotel Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for First Hotel 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.
TPE:2706 vs CBRE, BEKE, JLL: Interest Coverage Comparison
For the Real Estate Services subindustry, First Hotel 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.
First Hotel Co Interest Coverage vs Real Estate Industry
For the Real Estate industry and Real Estate sector, First Hotel Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where First Hotel Co'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.
First Hotel Co (TPE:2706) has a Interest Coverage of 125.70 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on First Hotel Co and its competitors. This is near median its historical median of 131.78. Over the past decade, First Hotel Co's Interest Coverage has ranged from 99.22 to 211.70. According to the industry distribution chart, First Hotel Co ranks #167 out of 1305 companies in the Real Estate industry, placing it in the top 12.8%.
Is First Hotel Co's Interest Coverage too high?
First Hotel Co's current Interest Coverage of 125.70 is near median its 10-year median of 131.78. Over the past 10 years, this metric has ranged from a low of 99.22 to a high of 211.70. The Real Estate industry median Interest Coverage is 4.24. First Hotel Co's value of 125.70 is 2864.6% above this industry median. Based on the distribution chart, First Hotel Co ranks #167 out of 1305 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, First Hotel Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does First Hotel Co's Interest Coverage compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, First Hotel Co ranks #167 out of 1305 companies for Interest Coverage. This places First Hotel Co in the top 13% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 4.24. First Hotel Co's value of 125.70 is 2864.6% above this benchmark. Historically, First Hotel Co's own Interest Coverage has ranged from 99.22 to 211.70 over the past decade. While the company's 10-year median is 131.78 vs. the industry median of 4.24, First Hotel 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 1,305 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. First Hotel Co's current Interest Coverage of 125.70 is 2864.6% 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 First Hotel 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. First Hotel Co's current Interest Coverage is 125.70, which is near median its own 10-year median of 131.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Hotel Co stock overvalued right now?
Based on GuruFocus' analysis, First Hotel Co (TPE:2706) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$17.26, compared to a current price of NT$12.55 — trading 27.3% below its estimated fair value. The current Interest Coverage is 125.70, which is near median its 10-year median of 131.78 and 2864.6% above the Real Estate industry median of 4.24. First Hotel Co's overall GF Score™ is 85/100 with 1 warning sign 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 First Hotel Co (TPE:2706), the current Interest Coverage is 125.70 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 First Hotel Co (TPE:2706) Overvalued in 2026?
Based on GuruFocus' analysis, First Hotel Co stock appears to be undervalued.
The current stock price of NT$12.55 is trading 27.3% below its estimated GF Value™ of NT$17.26.
GuruFocus considers First Hotel Co to be Modestly Undervalued.
Key valuation signals for TPE:2706:
Interest Coverage: 125.70 (near median its 10-year median of 131.78)
GF Value™: NT$17.26 vs. price of NT$12.55 (27.3% below fair value)
Industry Position: 2864.6% above the Real Estate median (#167 of 1305)
No single metric tells the full story. See the TPE:2706 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Hotel Co Ltd is a Taiwan-based company, that engages in the operation and management of hotels. The reportable segments of the company are the Travel service segment which include tourist hotel service, and the Leasing segment which generates key revenue and includes Rent out commercial buildings. The company operates tourism hotels, which provide spaces for accommodation, catering, parties, fitness centers, and meeting rooms. Its leasing of commercial buildings business mainly includes the leasing of shopping malls. It also provides services like dining halls, restaurants, and online booking services.
85GF Score
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