Formosa International HotelsTPE:2707 +0.28%91 Interest Coverage is 32.18 as of Dec. 2025, which is 18% above its 10-year median of 27.22. GuruFocus rates TPE:2707 with a GF Score™ of 91/100 and a GF Value™ of NT$217.39 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 607 Travel & Leisure companies, Formosa International Hotels ranks better than 74.96% 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. Formosa International Hotels's
Operating Income
for the
three
months ended in Dec. 2025 was NT$495 Mil. Formosa International Hotels's Interest Expense for the
three
months ended in Dec. 2025 was NT$-15 Mil.
Formosa International Hotels's interest coverage for the quarter that ended in Dec. 2025 was 32.18.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Formosa International Hotels's Interest Coverage or its related term are showing as below:
TPE:2707'
s Interest Coverage Range Over the Past 10 Years
Min: 6.99 Med: 27.22 Max: 46.03
Current: 26.94
TPE:2707's Interest Coverage is ranked better than 74.96% of 607
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs TPE:2707: 26.94
Formosa International Hotels (TPE:2707) 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 .
Formosa International Hotels Interest Coverage Related Terms
Formosa International Hotels Interest Coverage Historical Data
* 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.
Formosa International Hotels Interest Coverage Chart
TPE:2707 vs MAR, HLT, H: Interest Coverage Comparison
For the Lodging subindustry, Formosa International Hotels'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.
Formosa International Hotels Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Formosa International Hotels's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Formosa International Hotels's Interest Coverage falls into.
Formosa International Hotels 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:
* 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.
Formosa International Hotels (TPE:2707) has a Interest Coverage of 32.18 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Formosa International Hotels and its competitors. This is 18% above median its historical median of 27.22. Over the past decade, Formosa International Hotels' Interest Coverage has ranged from 6.99 to 46.03. According to the industry distribution chart, Formosa International Hotels ranks #152 out of 607 companies in the Travel & Leisure industry, placing it in the top 25%.
Is Formosa International Hotels' Interest Coverage too high?
Formosa International Hotels' current Interest Coverage of 32.18 is 18% above median its 10-year median of 27.22. Over the past 10 years, this metric has ranged from a low of 6.99 to a high of 46.03. The Travel & Leisure industry median Interest Coverage is 5.35. Formosa International Hotels' value of 32.18 is 501.5% above this industry median. Based on the distribution chart, Formosa International Hotels ranks #152 out of 607 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Formosa International Hotels has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formosa International Hotels' Interest Coverage compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Formosa International Hotels ranks #152 out of 607 companies for Interest Coverage. This places Formosa International Hotels in the top 25% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 5.35. Formosa International Hotels' value of 32.18 is 501.5% above this benchmark. Historically, Formosa International Hotels' own Interest Coverage has ranged from 6.99 to 46.03 over the past decade. While the company's 10-year median is 27.22 vs. the industry median of 5.35, Formosa International Hotels 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 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. Formosa International Hotels's current Interest Coverage of 32.18 is 501.5% 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 Formosa International Hotels 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. Formosa International Hotels's current Interest Coverage is 32.18, which is 18% above median its own 10-year median of 27.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa International Hotels stock overvalued right now?
Based on GuruFocus' analysis, Formosa International Hotels (TPE:2707) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$217.39, compared to a current price of NT$178.50 — trading 17.9% below its estimated fair value. The current Interest Coverage is 32.18, which is 18% above median its 10-year median of 27.22 and 501.5% above the Travel & Leisure industry median of 5.35. Formosa International Hotels' overall GF Score™ is 91/100 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 Formosa International Hotels (TPE:2707), the current Interest Coverage is 32.18 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 Formosa International Hotels (TPE:2707) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa International Hotels stock appears to be undervalued.
The current stock price of NT$178.50 is trading 17.9% below its estimated GF Value™ of NT$217.39.
GuruFocus considers Formosa International Hotels to be Modestly Undervalued.
Key valuation signals for TPE:2707:
Interest Coverage: 32.18 (18% above median its 10-year median of 27.22)
GF Value™: NT$217.39 vs. price of NT$178.50 (17.9% below fair value)
Industry Position: 501.5% above the Travel & Leisure median (#152 of 607)
No single metric tells the full story. See the TPE:2707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa International Hotels Corp is engaged in the operation of international tourist hotels. The Group also operates Chinese and Western restaurants, cafes, bars, conference halls, and related facilities, and provides consulting services for hotel management as well as consultation and diagnostic analysis for various types of leisure industry facilities. Its operations are organized into four business segments: Room/Accommodation, Food and Beverage, Rental, and Operation Management. The Group's revenue is mainly derived from its hotel and restaurant operations.
91GF Score
Get the complete analysis for TPE:2707
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