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. Norwegian Cruise Line Holdings's
Operating Income
for the
three
months ended in Mar. 2026 was €201 Mil. Norwegian Cruise Line Holdings's Interest Expense for the
three
months ended in Mar. 2026 was €-144 Mil.
Norwegian Cruise Line Holdings's interest coverage for the quarter that ended in Mar. 2026 was 1.40.
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. Norwegian Cruise Line Holdings Ltd interest coverage is 1.77, which is low.
The historical rank and industry rank for Norwegian Cruise Line Holdings's Interest Coverage or its related term are showing as below:
WBO:NCLH'
s Interest Coverage Range Over the Past 10 Years
Min: 1.28 Med: 3.34 Max: 5.15
Current: 1.77
WBO:NCLH's Interest Coverage is ranked worse than 79.64% of 609
companies
in the Travel & Leisure industry
Industry Median: 5.35
vs WBO:NCLH: 1.77
Norwegian Cruise Line Holdings (WBO:NCLH) 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 .
Norwegian Cruise Line Holdings Interest Coverage Related Terms
Norwegian Cruise Line Holdings 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.
Norwegian Cruise Line Holdings Interest Coverage Chart
WBO:NCLH vs MMYT, GBTG, TNL: Interest Coverage Comparison
For the Travel Services subindustry, Norwegian Cruise Line Holdings'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.
Norwegian Cruise Line Holdings Interest Coverage vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Norwegian Cruise Line Holdings's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Norwegian Cruise Line Holdings's Interest Coverage falls into.
Norwegian Cruise Line Holdings Interest Coverage Calculation
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.
Norwegian Cruise Line Holdings (WBO:NCLH) has a Interest Coverage of 1.40 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Norwegian Cruise Line Holdings and its competitors. This is 58% below median its historical median of 3.34. Over the past decade, Norwegian Cruise Line Holdings' Interest Coverage has ranged from 1.28 to 5.15. According to the industry distribution chart, Norwegian Cruise Line Holdings ranks #485 out of 609 companies in the Travel & Leisure industry, placing it in the top 79.6%.
Is Norwegian Cruise Line Holdings' Interest Coverage too high?
Norwegian Cruise Line Holdings' current Interest Coverage of 1.40 is 58% below median its 10-year median of 3.34. Over the past 10 years, this metric has ranged from a low of 1.28 to a high of 5.15. The Travel & Leisure industry median Interest Coverage is 5.35. Norwegian Cruise Line Holdings' value of 1.40 is 73.8% below this industry median. Based on the distribution chart, Norwegian Cruise Line Holdings ranks #485 out of 609 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Norwegian Cruise Line Holdings has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Norwegian Cruise Line Holdings' Interest Coverage compare to MMYT and GBTG?
According to the Travel & Leisure industry distribution chart, Norwegian Cruise Line Holdings ranks #485 out of 609 companies for Interest Coverage. This places Norwegian Cruise Line Holdings in the lower half of its industry. The industry median Interest Coverage is 5.35. Norwegian Cruise Line Holdings' value of 1.40 is 73.8% below this benchmark. Historically, Norwegian Cruise Line Holdings' own Interest Coverage has ranged from 1.28 to 5.15 over the past decade. While the company's 10-year median is 3.34 vs. the industry median of 5.35, Norwegian Cruise Line Holdings 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. Norwegian Cruise Line Holdings's current Interest Coverage of 1.40 is 73.8% 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 Norwegian Cruise Line Holdings 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. Norwegian Cruise Line Holdings's current Interest Coverage is 1.40, which is 58% below median its own 10-year median of 3.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Norwegian Cruise Line Holdings stock overvalued right now?
Based on GuruFocus' analysis, Norwegian Cruise Line Holdings (WBO:NCLH) is currently considered Fairly Valued. The stock's GF Value™ is €19.32, compared to a current price of €18.70 — trading 3.2% below its estimated fair value. The current Interest Coverage is 1.40, which is 58% below median its 10-year median of 3.34 and 73.8% below the Travel & Leisure industry median of 5.35. Norwegian Cruise Line Holdings' overall GF Score™ is 70/100 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 Norwegian Cruise Line Holdings (WBO:NCLH), the current Interest Coverage is 1.40 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 Norwegian Cruise Line Holdings (WBO:NCLH) Overvalued in 2026?
Based on GuruFocus' analysis, Norwegian Cruise Line Holdings stock appears to be undervalued.
The current stock price of €18.70 is trading 3.2% below its estimated GF Value™ of €19.32.
GuruFocus considers Norwegian Cruise Line Holdings to be Fairly Valued.
Key valuation signals for WBO:NCLH:
Interest Coverage: 1.40 (58% below median its 10-year median of 3.34)
GF Value™: €19.32 vs. price of €18.70 (3.2% below fair value)
Industry Position: 73.8% below the Travel & Leisure median (#485 of 609)
No single metric tells the full story. See the WBO:NCLH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Norwegian Cruise Line Holdings Business Description
Norwegian Cruise Line is the world's third-largest publicly traded cruise company by berths (around 75,000). It operates 35 ships across three brands—Norwegian, Oceania, and Regent Seven Seas—offering both freestyle and luxury cruising. The company redeployed its entire fleet as of May 2022. With 16 passenger vessels on order among its brands through 2037, representing 43,000 incremental berths, Norwegian is increasing capacity faster than its peers, expanding its brand globally. Norwegian sails to around 700 global destinations.
70GF Score
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