Meta PlatformsTSX:META -0.90%93 Interest Coverage is 40.70 as of Mar. 2026, which is 97% below its 10-year median of 1,242.70. GuruFocus rates TSX:META with a GF Score™ of 93/100 and a GF Value™ of C$43.14 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 316 Interactive Media companies, Meta Platforms ranks better than 56.01% 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. Meta Platforms's
Operating Income
for the
three
months ended in Mar. 2026 was C$31,380 Mil. Meta Platforms's Interest Expense for the
three
months ended in Mar. 2026 was C$-771 Mil.
Meta Platforms's interest coverage for the quarter that ended in Mar. 2026 was 40.70.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Meta Platforms's Interest Coverage or its related term are showing as below:
TSX:META'
s Interest Coverage Range Over the Past 10 Years
Min: 59.62 Med: 1242.7 Max: 3367.17
Current: 59.62
TSX:META's Interest Coverage is ranked better than 56.01% of 316
companies
in the Interactive Media industry
Industry Median: 38.305
vs TSX:META: 59.62
Meta Platforms (TSX:META) 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 .
Meta Platforms Interest Coverage Related Terms
Meta Platforms Interest Coverage Historical Data
* Premium members only.
The historical data trend for Meta Platforms'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:META vs SPOT, NBIS, BIDU: Interest Coverage Comparison
For the Internet Content & Information subindustry, Meta Platforms'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.
Meta Platforms Interest Coverage vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Meta Platforms's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Meta Platforms'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.
Meta Platforms (TSX:META) has a Interest Coverage of 40.70 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Meta Platforms and its competitors. This is 97% below median its historical median of 1,242.70. Over the past decade, Meta Platforms' Interest Coverage has ranged from 59.62 to 3,367.17. According to the industry distribution chart, Meta Platforms ranks #139 out of 316 companies in the Interactive Media industry, placing it in the top 44%.
Is Meta Platforms' Interest Coverage too high?
Meta Platforms' current Interest Coverage of 40.70 is 97% below median its 10-year median of 1,242.70. Over the past 10 years, this metric has ranged from a low of 59.62 to a high of 3,367.17. The Interactive Media industry median Interest Coverage is 38.31. Meta Platforms' value of 40.70 is 6.3% above this industry median. Based on the distribution chart, Meta Platforms ranks #139 out of 316 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Meta Platforms has a GF Score™ of 93/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Meta Platforms' Interest Coverage compare to SPOT and NBIS?
According to the Interactive Media industry distribution chart, Meta Platforms ranks #139 out of 316 companies for Interest Coverage. This puts Meta Platforms in the upper half of its industry. The industry median Interest Coverage is 38.31. Meta Platforms' value of 40.70 is 6.3% above this benchmark. Historically, Meta Platforms' own Interest Coverage has ranged from 59.62 to 3,367.17 over the past decade. While the company's 10-year median is 1,242.70 vs. the industry median of 38.31, Meta Platforms 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 an Interactive Media company?
The median Interest Coverage among Interactive Media companies is 38.31, based on 316 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. Meta Platforms's current Interest Coverage of 40.70 is 6.3% 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 Meta Platforms and its competitors. For the Interactive Media industry, the median Interest Coverage is 38.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Meta Platforms's current Interest Coverage is 40.70, which is 97% below median its own 10-year median of 1,242.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Meta Platforms stock overvalued right now?
Based on GuruFocus' analysis, Meta Platforms (TSX:META) is currently considered Significantly Undervalued. The stock's GF Value™ is C$43.14, compared to a current price of C$29.73 — trading 31.1% below its estimated fair value. The current Interest Coverage is 40.70, which is 97% below median its 10-year median of 1,242.70 and 6.3% above the Interactive Media industry median of 38.31. Meta Platforms' overall GF Score™ is 93/100 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 Meta Platforms (TSX:META), the current Interest Coverage is 40.70 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 Meta Platforms (TSX:META) Overvalued in 2026?
Based on GuruFocus' analysis, Meta Platforms stock appears to be undervalued.
The current stock price of C$29.73 is trading 31.1% below its estimated GF Value™ of C$43.14.
GuruFocus considers Meta Platforms to be Significantly Undervalued.
Key valuation signals for TSX:META:
Interest Coverage: 40.70 (97% below median its 10-year median of 1,242.70)
GF Value™: C$43.14 vs. price of C$29.73 (31.1% below fair value)
Industry Position: 6.3% above the Interactive Media median (#139 of 316)
No single metric tells the full story. See the TSX:META stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Meta is the largest social media company in the world, boasting close to 4 billion monthly active users worldwide. The firm's "Family of Apps," its core business, consists of Facebook, Instagram, Messenger, and WhatsApp. End users can leverage these applications for a variety of different purposes, from keeping in touch with friends to following celebrities and running digital businesses for free. Meta packages customer data, gleaned from its application ecosystem and sells ads to digital advertisers. While the firm has been investing heavily in its Reality Labs business, it remains a very small part of Meta's overall sales.
93GF Score
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