PegatronTPE:4938 +1.48%70 Interest Coverage is 13.10 as of Dec. 2025, which is 32% above its 10-year median of 9.91. GuruFocus rates TPE:4938 with a GF Score™ of 70/100 and a GF Value™ of NT$76.32 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,672 Hardware companies, Pegatron ranks worse than 61.78% 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. Pegatron's
Operating Income
for the
three
months ended in Dec. 2025 was NT$4,437 Mil. Pegatron's Interest Expense for the
three
months ended in Dec. 2025 was NT$-339 Mil.
Pegatron's interest coverage for the quarter that ended in Dec. 2025 was 13.10.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Pegatron's Interest Coverage or its related term are showing as below:
TPE:4938'
s Interest Coverage Range Over the Past 10 Years
Min: 4.56 Med: 9.91 Max: 32.25
Current: 8.6
TPE:4938's Interest Coverage is ranked worse than 61.78% of 1672
companies
in the Hardware industry
Industry Median: 13.73
vs TPE:4938: 8.60
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 .
Pegatron Interest Coverage Related Terms
Pegatron Interest Coverage Historical Data
* Premium members only.
The historical data trend for Pegatron'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:4938 vs SNDK, DELL, STX: Interest Coverage Comparison
For the Computer Hardware subindustry, Pegatron'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.
Pegatron Interest Coverage vs Hardware Industry
For the Hardware industry and Technology sector, Pegatron's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Pegatron'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.
Pegatron (TPE:4938) has a Interest Coverage of 13.10 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Pegatron and its competitors. This is 32% above median its historical median of 9.91. Over the past decade, Pegatron's Interest Coverage has ranged from 4.56 to 32.25. According to the industry distribution chart, Pegatron ranks #1033 out of 1672 companies in the Hardware industry, placing it in the top 61.8%.
Is Pegatron's Interest Coverage too high?
Pegatron's current Interest Coverage of 13.10 is 32% above median its 10-year median of 9.91. Over the past 10 years, this metric has ranged from a low of 4.56 to a high of 32.25. The Hardware industry median Interest Coverage is 13.73. Pegatron's value of 13.10 is 4.6% below this industry median. Based on the distribution chart, Pegatron ranks #1033 out of 1672 companies in the Hardware industry, which is below the industry midpoint. Overall, Pegatron has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pegatron's Interest Coverage compare to SNDK and DELL?
According to the Hardware industry distribution chart, Pegatron ranks #1033 out of 1672 companies for Interest Coverage. This places Pegatron in the lower half of its industry. The industry median Interest Coverage is 13.73. Pegatron's value of 13.10 is 4.6% below this benchmark. Historically, Pegatron's own Interest Coverage has ranged from 4.56 to 32.25 over the past decade. While the company's 10-year median is 9.91 vs. the industry median of 13.73, Pegatron 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 Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,672 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. Pegatron's current Interest Coverage of 13.10 is 4.6% 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 Pegatron and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pegatron's current Interest Coverage is 13.10, which is 32% above median its own 10-year median of 9.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pegatron stock overvalued right now?
Based on GuruFocus' analysis, Pegatron (TPE:4938) is currently considered Fairly Valued. The stock's GF Value™ is NT$76.32, compared to a current price of NT$82.20 — trading 7.7% above its estimated fair value. The current Interest Coverage is 13.10, which is 32% above median its 10-year median of 9.91 and 4.6% below the Hardware industry median of 13.73. Pegatron's overall GF Score™ is 70/100 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 Pegatron (TPE:4938), the current Interest Coverage is 13.10 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 Pegatron (TPE:4938) Overvalued in 2026?
Based on GuruFocus' analysis, Pegatron stock appears to be overvalued.
The current stock price of NT$82.20 is trading 7.7% above its estimated GF Value™ of NT$76.32.
GuruFocus considers Pegatron to be Fairly Valued.
Key valuation signals for TPE:4938:
Interest Coverage: 13.10 (32% above median its 10-year median of 9.91)
GF Value™: NT$76.32 vs. price of NT$82.20 (7.7% above fair value)
Industry Position: 4.6% below the Hardware median (#1033 of 1672)
No single metric tells the full story. See the TPE:4938 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pegatron Corp is engaged in the design, manufacture, and sale of OEM products. The Group operates through two segments: DMS (Design, Manufacturing and Service) and the Strategic Investment Group. The DMS segment focuses on designing and manufacturing computer, communication, and consumer electronics end products, as well as providing after-sales services, and generates the majority of the Group's revenue. The Strategic Investment Group is involved in upstream and downstream supply chain activities, strategic investments, and other related investment operations. Geographically, the Group generates the majority of its revenue from Taiwan.
70GF Score
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