Taylor WimpeyTWODY +0.72%64 Interest Coverage is 11.98 as of Dec. 2025, which is 46% below its 10-year median of 22.26. GuruFocus rates TWODY with a GF Score™ of 64/100 and a GF Value™ of $17.05 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 78 Homebuilding & Construction companies, Taylor Wimpey ranks better than 58.97% 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. Taylor Wimpey's
Operating Income
for the
six
months ended in Dec. 2025 was $346 Mil. Taylor Wimpey's Interest Expense for the
six
months ended in Dec. 2025 was $-29 Mil.
Taylor Wimpey's interest coverage for the quarter that ended in Dec. 2025 was 11.98.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Taylor Wimpey's Interest Coverage or its related term are showing as below:
TWODY'
s Interest Coverage Range Over the Past 10 Years
Min: 9.95 Med: 22.26 Max: 34.34
Current: 10.06
TWODY's Interest Coverage is ranked better than 58.97% of 78
companies
in the Homebuilding & Construction industry
Industry Median: 8.305
vs TWODY: 10.06
Taylor Wimpey (OTCPK:TWODY) 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 .
Taylor Wimpey Interest Coverage Related Terms
Taylor Wimpey Interest Coverage Historical Data
* Premium members only.
The historical data trend for Taylor Wimpey'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.
TWODY vs DHI, PHM, LEN: Interest Coverage Comparison
For the Residential Construction subindustry, Taylor Wimpey'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.
Taylor Wimpey Interest Coverage vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Taylor Wimpey's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Taylor Wimpey'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.
Taylor Wimpey (TWODY) has a Interest Coverage of 11.98 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Taylor Wimpey and its competitors. This is 46% below median its historical median of 22.26. Over the past decade, Taylor Wimpey's Interest Coverage has ranged from 9.95 to 34.34. According to the industry distribution chart, Taylor Wimpey ranks #32 out of 78 companies in the Homebuilding & Construction industry, placing it in the top 41%.
Is Taylor Wimpey's Interest Coverage too high?
Taylor Wimpey's current Interest Coverage of 11.98 is 46% below median its 10-year median of 22.26. Over the past 10 years, this metric has ranged from a low of 9.95 to a high of 34.34. The Homebuilding & Construction industry median Interest Coverage is 8.31. Taylor Wimpey's value of 11.98 is 44.3% above this industry median. Based on the distribution chart, Taylor Wimpey ranks #32 out of 78 companies in the Homebuilding & Construction industry, which is above the industry midpoint. Overall, Taylor Wimpey has a GF Score™ of 64/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Taylor Wimpey's Interest Coverage compare to DHI and PHM?
According to the Homebuilding & Construction industry distribution chart, Taylor Wimpey ranks #32 out of 78 companies for Interest Coverage. This puts Taylor Wimpey in the upper half of its industry. The industry median Interest Coverage is 8.31. Taylor Wimpey's value of 11.98 is 44.3% above this benchmark. Historically, Taylor Wimpey's own Interest Coverage has ranged from 9.95 to 34.34 over the past decade. While the company's 10-year median is 22.26 vs. the industry median of 8.31, Taylor Wimpey 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 Homebuilding & Construction company?
The median Interest Coverage among Homebuilding & Construction companies is 8.31, based on 78 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. Taylor Wimpey's current Interest Coverage of 11.98 is 44.3% 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 Taylor Wimpey and its competitors. For the Homebuilding & Construction industry, the median Interest Coverage is 8.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taylor Wimpey's current Interest Coverage is 11.98, which is 46% below median its own 10-year median of 22.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taylor Wimpey stock overvalued right now?
Based on GuruFocus' analysis, Taylor Wimpey (TWODY) is currently considered Significantly Undervalued. The stock's GF Value™ is $17.05, compared to a current price of $11.20 — trading 34.3% below its estimated fair value. The current Interest Coverage is 11.98, which is 46% below median its 10-year median of 22.26 and 44.3% above the Homebuilding & Construction industry median of 8.31. Taylor Wimpey's overall GF Score™ is 64/100 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 Taylor Wimpey (TWODY), the current Interest Coverage is 11.98 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 Taylor Wimpey (TWODY) Overvalued in 2026?
Based on GuruFocus' analysis, Taylor Wimpey stock appears to be undervalued.
The current stock price of $11.20 is trading 34.3% below its estimated GF Value™ of $17.05.
GuruFocus considers Taylor Wimpey to be Significantly Undervalued.
Key valuation signals for TWODY:
Interest Coverage: 11.98 (46% below median its 10-year median of 22.26)
GF Value™: $17.05 vs. price of $11.20 (34.3% below fair value)
Industry Position: 44.3% above the Homebuilding & Construction median (#32 of 78)
No single metric tells the full story. See the TWODY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taylor Wimpey is the UK's fourth-largest residential property developer by revenue and dwelling completions and was established via the merger of George Wimpey and Taylor Woodrow in 2007. Taylor Wimpey typifies the business model employed by UK homebuilders, traditionally operating in the land development, construction, and sales and marketing segments of the residential property development value chain. The company also has a small homebuilding operation in Spain.
64GF Score
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Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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