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. Powerchip Semiconductor Manufacturing's
Operating Income
for the
three
months ended in Mar. 2026 was NT$14,226 Mil. Powerchip Semiconductor Manufacturing's Interest Expense for the
three
months ended in Mar. 2026 was NT$-457 Mil.
Powerchip Semiconductor Manufacturing's interest coverage for the quarter that ended in Mar. 2026 was 31.13.
The higher the ratio, the stronger the company's financial strength is.
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 .
Powerchip Semiconductor Manufacturing Interest Coverage Related Terms
Powerchip Semiconductor Manufacturing 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.
TPE:6770 vs NVDA, AVGO, MU: Interest Coverage Comparison
For the Semiconductors subindustry, Powerchip Semiconductor Manufacturing'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.
Powerchip Semiconductor Manufacturing Interest Coverage vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Powerchip Semiconductor Manufacturing's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Powerchip Semiconductor Manufacturing'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.
Powerchip Semiconductor Manufacturing (TPE:6770) has a Interest Coverage of 31.13 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Powerchip Semiconductor Manufacturing and its competitors. This is near median its historical median of 28.79. Over the past decade, Powerchip Semiconductor Manufacturing's Interest Coverage has ranged from 5.07 to 123.52. According to the industry distribution chart, Powerchip Semiconductor Manufacturing ranks #491 out of 636 companies in the Semiconductors industry, placing it in the top 77.2%.
Is Powerchip Semiconductor Manufacturing's Interest Coverage too high?
Powerchip Semiconductor Manufacturing's current Interest Coverage of 31.13 is near median its 10-year median of 28.79. Over the past 10 years, this metric has ranged from a low of 5.07 to a high of 123.52. The Semiconductors industry median Interest Coverage is 20.23. Powerchip Semiconductor Manufacturing's value of 31.13 is 53.9% above this industry median. Based on the distribution chart, Powerchip Semiconductor Manufacturing ranks #491 out of 636 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Powerchip Semiconductor Manufacturing has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Powerchip Semiconductor Manufacturing's Interest Coverage compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Powerchip Semiconductor Manufacturing ranks #491 out of 636 companies for Interest Coverage. This places Powerchip Semiconductor Manufacturing in the lower half of its industry. The industry median Interest Coverage is 20.23. Powerchip Semiconductor Manufacturing's value of 31.13 is 53.9% above this benchmark. Historically, Powerchip Semiconductor Manufacturing's own Interest Coverage has ranged from 5.07 to 123.52 over the past decade. While the company's 10-year median is 28.79 vs. the industry median of 20.23, Powerchip Semiconductor Manufacturing 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 Semiconductors company?
The median Interest Coverage among Semiconductors companies is 20.23, based on 636 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. Powerchip Semiconductor Manufacturing's current Interest Coverage of 31.13 is 53.9% 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 Powerchip Semiconductor Manufacturing and its competitors. For the Semiconductors industry, the median Interest Coverage is 20.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Powerchip Semiconductor Manufacturing's current Interest Coverage is 31.13, which is near median its own 10-year median of 28.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Powerchip Semiconductor Manufacturing stock overvalued right now?
Based on GuruFocus' analysis, Powerchip Semiconductor Manufacturing (TPE:6770) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$26.64, compared to a current price of NT$78.90 — trading 196.2% above its estimated fair value. The current Interest Coverage is 31.13, which is near median its 10-year median of 28.79 and 53.9% above the Semiconductors industry median of 20.23. Powerchip Semiconductor Manufacturing's overall GF Score™ is 61/100 with 4 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 Powerchip Semiconductor Manufacturing (TPE:6770), the current Interest Coverage is 31.13 as of Mar. 2026. 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 Powerchip Semiconductor Manufacturing (TPE:6770) Overvalued in 2026?
Based on GuruFocus' analysis, Powerchip Semiconductor Manufacturing stock appears to be overvalued.
The current stock price of NT$78.90 is trading 196.2% above its estimated GF Value™ of NT$26.64.
GuruFocus considers Powerchip Semiconductor Manufacturing to be Significantly Overvalued.
Key valuation signals for TPE:6770:
Interest Coverage: 31.13 (near median its 10-year median of 28.79)
GF Value™: NT$26.64 vs. price of NT$78.90 (196.2% above fair value)
Industry Position: 53.9% above the Semiconductors median (#491 of 636)
No single metric tells the full story. See the TPE:6770 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Powerchip Semiconductor Manufacturing Business Description
Powerchip Semiconductor Manufacturing Corp is engaged in the business of manufacturing and distributing memory components. The company is engaged in research and development, manufacturing, testing, packaging, and selling integrated circuit products. The company produces power-integrated circuits, discrete components, image sensors, and other related products. Geographically, the company earns the majority of its revenue from Taiwan.
61GF Score
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