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Brookfield BusinessTSX:BBUC -2.24%55 Interest Coverage is 1.32 as of Mar. 2026, which is 2% below its 10-year median of 1.35. GuruFocus rates TSX:BBUC with a GF Score™ of 55/100 and a GF Value™ of C$12.19 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 424 Conglomerates companies, Brookfield Business ranks worse than 86.08% 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. Brookfield Business's
Operating Income
for the
three
months ended in Mar. 2026 was C$1,391 Mil. Brookfield Business's Interest Expense for the
three
months ended in Mar. 2026 was C$-1,051 Mil.
Brookfield Business's interest coverage for the quarter that ended in Mar. 2026 was 1.32.
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. Brookfield Business Corp interest coverage is 1.32, which is low.
The historical rank and industry rank for Brookfield Business's Interest Coverage or its related term are showing as below:
TSX:BBUC'
s Interest Coverage Range Over the Past 10 Years
Min: 0.21 Med: 1.35 Max: 3.3
Current: 1.32
TSX:BBUC's Interest Coverage is ranked worse than 86.08% of 424
companies
in the Conglomerates industry
Industry Median: 5.27
vs TSX:BBUC: 1.32
Brookfield Business (TSX:BBUC) 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 .
Brookfield Business Interest Coverage Related Terms
Brookfield Business Interest Coverage Historical Data
* Premium members only.
The historical data trend for Brookfield Business'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.
TSX:BBUC vs HON, MMM: Interest Coverage Comparison
For the Conglomerates subindustry, Brookfield Business'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.
Brookfield Business Interest Coverage vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Brookfield Business's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Brookfield Business'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.
Brookfield Business (TSX:BBUC) has a Interest Coverage of 1.32 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Brookfield Business and its competitors. This is near median its historical median of 1.35. Over the past decade, Brookfield Business' Interest Coverage has ranged from 0.21 to 3.30. According to the industry distribution chart, Brookfield Business ranks #365 out of 424 companies in the Conglomerates industry, placing it in the top 86.1%.
Is Brookfield Business' Interest Coverage too high?
Brookfield Business' current Interest Coverage of 1.32 is near median its 10-year median of 1.35. Over the past 10 years, this metric has ranged from a low of 0.21 to a high of 3.30. The Conglomerates industry median Interest Coverage is 5.27. Brookfield Business' value of 1.32 is 75% below this industry median. Based on the distribution chart, Brookfield Business ranks #365 out of 424 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Brookfield Business has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Brookfield Business' Interest Coverage compare to HON and MMM?
According to the Conglomerates industry distribution chart, Brookfield Business ranks #365 out of 424 companies for Interest Coverage. This places Brookfield Business in the lower half of its industry. The industry median Interest Coverage is 5.27. Brookfield Business' value of 1.32 is 75% below this benchmark. Historically, Brookfield Business' own Interest Coverage has ranged from 0.21 to 3.30 over the past decade. While the company's 10-year median is 1.35 vs. the industry median of 5.27, Brookfield Business 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 Conglomerates company?
The median Interest Coverage among Conglomerates companies is 5.27, based on 424 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. Brookfield Business's current Interest Coverage of 1.32 is 75% 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 Brookfield Business and its competitors. For the Conglomerates industry, the median Interest Coverage is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Brookfield Business's current Interest Coverage is 1.32, which is near median its own 10-year median of 1.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brookfield Business stock overvalued right now?
Based on GuruFocus' analysis, Brookfield Business (TSX:BBUC) is currently considered Significantly Overvalued. The stock's GF Value™ is C$12.19, compared to a current price of C$42.86 — trading 251.6% above its estimated fair value. The current Interest Coverage is 1.32, which is near median its 10-year median of 1.35 and 75% below the Conglomerates industry median of 5.27. Brookfield Business' overall GF Score™ is 55/100 with 6 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 Brookfield Business (TSX:BBUC), the current Interest Coverage is 1.32 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 Brookfield Business (TSX:BBUC) Overvalued in 2026?
Based on GuruFocus' analysis, Brookfield Business stock appears to be overvalued.
The current stock price of C$42.86 is trading 251.6% above its estimated GF Value™ of C$12.19.
GuruFocus considers Brookfield Business to be Significantly Overvalued.
Key valuation signals for TSX:BBUC:
Interest Coverage: 1.32 (near median its 10-year median of 1.35)
GF Value™: C$12.19 vs. price of C$42.86 (251.6% above fair value)
Industry Position: 75% below the Conglomerates median (#365 of 424)
No single metric tells the full story. See the TSX:BBUC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Brookfield Business Corp is the operator of vital industrial and business services operations. The company focuses on acquiring market businesses for value, execute its operational improvement plans to increase cash flows and recycle capital to compound long-term growth. Geographically, it derives maximum revenue from the United States, and the rest from Europe, Brazil, Australia, Canada, and others. It operates in four segments within particular sectors namely: business services, infrastructure services, industrials, and corporate. The company derives maximum revenue from Industrials segment engaged in energy storage operations, engineered components manufacturing operations, water and wastewater operations, electric heat tracing systems manufacturer, and other industrials operations.
55GF Score
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