Marriott Vacations WorldwideVAC -0.85%84 Interest Coverage is 2.18 as of Mar. 2026, which is 48% below its 10-year median of 4.16. GuruFocus rates VAC with a GF Score™ of 84/100 and a GF Value™ of $102.20 (Fairly Valued). The stock has 7 warning signs investors should review. Among 609 Travel & Leisure companies, Marriott Vacations Worldwide ranks worse than 72.41% 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. Marriott Vacations Worldwide's
Operating Income
for the
three
months ended in Mar. 2026 was $96 Mil. Marriott Vacations Worldwide's Interest Expense for the
three
months ended in Mar. 2026 was $-44 Mil.
Marriott Vacations Worldwide's interest coverage for the quarter that ended in Mar. 2026 was 2.18.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Marriott Vacations Worldwide's Interest Coverage or its related term are showing as below:
VAC'
s Interest Coverage Range Over the Past 10 Years
Min: 0.22 Med: 4.16 Max: 25
Current: 2.45
VAC's Interest Coverage is ranked worse than 72.41% of 609
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs VAC: 2.45
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 .
Marriott Vacations Worldwide Interest Coverage Related Terms
Marriott Vacations Worldwide 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.
VAC vs PENN, RRR, MCRI: Interest Coverage Comparison
For the Resorts & Casinos subindustry, Marriott Vacations Worldwide'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.
Marriott Vacations Worldwide Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Marriott Vacations Worldwide's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Marriott Vacations Worldwide'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.
Marriott Vacations Worldwide (VAC) has a Interest Coverage of 2.18 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Marriott Vacations Worldwide and its competitors. This is 48% below median its historical median of 4.16. Over the past decade, Marriott Vacations Worldwide's Interest Coverage has ranged from 0.22 to 25.00. According to the industry distribution chart, Marriott Vacations Worldwide ranks #441 out of 609 companies in the Travel & Leisure industry, placing it in the top 72.4%.
Is Marriott Vacations Worldwide's Interest Coverage too high?
Marriott Vacations Worldwide's current Interest Coverage of 2.18 is 48% below median its 10-year median of 4.16. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 25.00. The Travel & Leisure industry median Interest Coverage is 5.35. Marriott Vacations Worldwide's value of 2.18 is 59.3% below this industry median. Based on the distribution chart, Marriott Vacations Worldwide ranks #441 out of 609 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Marriott Vacations Worldwide has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Marriott Vacations Worldwide's Interest Coverage compare to PENN and RRR?
According to the Travel & Leisure industry distribution chart, Marriott Vacations Worldwide ranks #441 out of 609 companies for Interest Coverage. This places Marriott Vacations Worldwide in the lower half of its industry. The industry median Interest Coverage is 5.35. Marriott Vacations Worldwide's value of 2.18 is 59.3% below this benchmark. Historically, Marriott Vacations Worldwide's own Interest Coverage has ranged from 0.22 to 25.00 over the past decade. While the company's 10-year median is 4.16 vs. the industry median of 5.35, Marriott Vacations Worldwide 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 Travel & Leisure company?
The median Interest Coverage among Travel & Leisure companies is 5.35, based on 609 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. Marriott Vacations Worldwide's current Interest Coverage of 2.18 is 59.3% 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 Marriott Vacations Worldwide and its competitors. For the Travel & Leisure industry, the median Interest Coverage is 5.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Marriott Vacations Worldwide's current Interest Coverage is 2.18, which is 48% below median its own 10-year median of 4.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Marriott Vacations Worldwide stock overvalued right now?
Based on GuruFocus' analysis, Marriott Vacations Worldwide (VAC) is currently considered Fairly Valued. The stock's GF Value™ is $102.20, compared to a current price of $98.31 — trading 3.8% below its estimated fair value. The current Interest Coverage is 2.18, which is 48% below median its 10-year median of 4.16 and 59.3% below the Travel & Leisure industry median of 5.35. Marriott Vacations Worldwide's overall GF Score™ is 84/100 with 7 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 Marriott Vacations Worldwide (VAC), the current Interest Coverage is 2.18 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 Marriott Vacations Worldwide (VAC) Overvalued in 2026?
Based on GuruFocus' analysis, Marriott Vacations Worldwide stock appears to be undervalued.
The current stock price of $98.31 is trading 3.8% below its estimated GF Value™ of $102.20.
GuruFocus considers Marriott Vacations Worldwide to be Fairly Valued.
Key valuation signals for VAC:
Interest Coverage: 2.18 (48% below median its 10-year median of 4.16)
GF Value™: $102.20 vs. price of $98.31 (3.8% below fair value)
Industry Position: 59.3% below the Travel & Leisure median (#441 of 609)
No single metric tells the full story. See the VAC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Marriott Vacations Worldwide Corp functions in the United States leisure industry. It owns and manages a cluster of resorts and accommodation facilities under trademarks like Marriott Vacation Club, Grand Residencies, and The Ritz-Carlton Destination Club predominantly in the United States. Some of its properties are also spread across Europe and Asia Pacific. Marriott's majority revenue components include the sale of vacation ownership products such as luxurious vacation packages. In addition, it offers purchase money financing to the end users of its core services. The company operates in two reportable segments: Vacation Ownership and Exchange & Third-Party Management. The majority of revenue is derived from the Vacation Ownership segment.
84GF Score
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