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. Far Eastern Department Stores's
Operating Income
for the
three
months ended in Dec. 2025 was NT$1,467 Mil. Far Eastern Department Stores's Interest Expense for the
three
months ended in Dec. 2025 was NT$-366 Mil.
Far Eastern Department Stores's interest coverage for the quarter that ended in Dec. 2025 was 4.01.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Far Eastern Department Stores Ltd interest coverage is 2.8, which is low.
The historical rank and industry rank for Far Eastern Department Stores's Interest Coverage or its related term are showing as below:
TPE:2903'
s Interest Coverage Range Over the Past 10 Years
Min: 2.66 Med: 5.27 Max: 9.54
Current: 2.8
TPE:2903's Interest Coverage is ranked worse than 76.21% of 824
companies
in the Retail - Cyclical industry
Industry Median: 7.94
vs TPE:2903: 2.80
Far Eastern Department Stores (TPE:2903) 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 .
Far Eastern Department Stores Interest Coverage Related Terms
Far Eastern Department Stores 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.
Far Eastern Department Stores Interest Coverage Chart
For the Department Stores subindustry, Far Eastern Department Stores'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.
Far Eastern Department Stores Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Far Eastern Department Stores's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Far Eastern Department Stores's Interest Coverage falls into.
Far Eastern Department Stores 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.
Far Eastern Department Stores (TPE:2903) has a Interest Coverage of 4.01 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Far Eastern Department Stores and its competitors. This is 24% below median its historical median of 5.27. Over the past decade, Far Eastern Department Stores' Interest Coverage has ranged from 2.66 to 9.54. According to the industry distribution chart, Far Eastern Department Stores ranks #628 out of 824 companies in the Retail - Cyclical industry, placing it in the top 76.2%.
Is Far Eastern Department Stores' Interest Coverage too high?
Far Eastern Department Stores' current Interest Coverage of 4.01 is 24% below median its 10-year median of 5.27. Over the past 10 years, this metric has ranged from a low of 2.66 to a high of 9.54. The Retail - Cyclical industry median Interest Coverage is 7.94. Far Eastern Department Stores' value of 4.01 is 49.5% below this industry median. Based on the distribution chart, Far Eastern Department Stores ranks #628 out of 824 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Far Eastern Department Stores has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Far Eastern Department Stores' Interest Coverage compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Far Eastern Department Stores ranks #628 out of 824 companies for Interest Coverage. This places Far Eastern Department Stores in the lower half of its industry. The industry median Interest Coverage is 7.94. Far Eastern Department Stores' value of 4.01 is 49.5% below this benchmark. Historically, Far Eastern Department Stores' own Interest Coverage has ranged from 2.66 to 9.54 over the past decade. While the company's 10-year median is 5.27 vs. the industry median of 7.94, Far Eastern Department Stores 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 Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.94, based on 824 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. Far Eastern Department Stores's current Interest Coverage of 4.01 is 49.5% 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 Far Eastern Department Stores and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Far Eastern Department Stores's current Interest Coverage is 4.01, which is 24% below median its own 10-year median of 5.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Far Eastern Department Stores stock overvalued right now?
Based on GuruFocus' analysis, Far Eastern Department Stores (TPE:2903) is currently considered Fairly Valued. The stock's GF Value™ is NT$22.26, compared to a current price of NT$23.45 — trading 5.3% above its estimated fair value. The current Interest Coverage is 4.01, which is 24% below median its 10-year median of 5.27 and 49.5% below the Retail - Cyclical industry median of 7.94. Far Eastern Department Stores' overall GF Score™ is 73/100 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 Far Eastern Department Stores (TPE:2903), the current Interest Coverage is 4.01 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 Far Eastern Department Stores (TPE:2903) Overvalued in 2026?
Based on GuruFocus' analysis, Far Eastern Department Stores stock appears to be overvalued.
The current stock price of NT$23.45 is trading 5.3% above its estimated GF Value™ of NT$22.26.
GuruFocus considers Far Eastern Department Stores to be Fairly Valued.
Key valuation signals for TPE:2903:
Interest Coverage: 4.01 (24% below median its 10-year median of 5.27)
GF Value™: NT$22.26 vs. price of NT$23.45 (5.3% above fair value)
Industry Position: 49.5% below the Retail - Cyclical median (#628 of 824)
No single metric tells the full story. See the TPE:2903 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Far Eastern Department Stores Business Description
Far Eastern Department Stores Ltd is a Taiwan-based company principally engaged in the operation of department stores and supermarkets. It provides a broad range of merchandise, including foods, apparel, gold and jewelry, household appliances, groceries, home furnishing products, consumer electronics, stationery goods, artworks, entertainment appliances, and sports and leisure goods. Geographically, the Group generates maximum revenue from ROC, and the rest from China.
73GF Score
Get the complete analysis for TPE:2903
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