Arun Valley Hydro Power Co (XNEP:AHPC) Interest Coverage: 9.26 (As of Jan. 2026) — 137% Above Median


XNEP:AHPC Arun Valley Hydro Power Co Ltd XNEP:AHPC
93 GF Score
Price NPR261.50
GF Value NPR322.29
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Arun Valley Hydro Power Co Interest Coverage?

Arun Valley Hydro Power Co XNEP:AHPC +0.54% 93 Interest Coverage is 9.26 as of Jan. 2026, which is 137% above its 10-year median of 3.91. GuruFocus rates XNEP:AHPC with a GF Score™ of 93/100 and a GF Value™ of NPR322.29 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 449 Utilities - Regulated companies, Arun Valley Hydro Power Co ranks better than 59.69% 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. Arun Valley Hydro Power Co's Operating Income for the three months ended in Jan. 2026 was NPR50.0 Mil. Arun Valley Hydro Power Co's Interest Expense for the three months ended in Jan. 2026 was NPR-5.4 Mil. Arun Valley Hydro Power Co's interest coverage for the quarter that ended in Jan. 2026 was 9.26. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Arun Valley Hydro Power Co's Interest Coverage or its related term are showing as below:

XNEP:AHPC' s Interest Coverage Range Over the Past 10 Years
Min: 0.66   Med: 3.91   Max: 649.93
Current: 4.97


XNEP:AHPC's Interest Coverage is ranked better than
59.69% of 449 companies
in the Utilities - Regulated industry
Industry Median: 3.78 vs XNEP:AHPC: 4.97

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Arun Valley Hydro Power Co  (XNEP:AHPC) 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 .


Arun Valley Hydro Power Co Interest Coverage Related Terms


Arun Valley Hydro Power Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Arun Valley Hydro Power Co'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.

Arun Valley Hydro Power Co Interest Coverage Chart

Arun Valley Hydro Power Co Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 2.57 0.66 0.00 2.52

Arun Valley Hydro Power Co Quarterly Data
Jul20 Apr21 Jul21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.96 2.15 2.38 7.96 9.26

XNEP:AHPC vs NEE, SO, DUK: Interest Coverage Comparison

For the Utilities - Regulated Electric subindustry, Arun Valley Hydro Power Co'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.


Arun Valley Hydro Power Co Interest Coverage vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Arun Valley Hydro Power Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Arun Valley Hydro Power Co's Interest Coverage falls into.


XNEP:AHPC
93GF Score
Arun Valley Hydro Power Co Ltd XNEP:AHPC
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Arun Valley Hydro Power Co 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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Arun Valley Hydro Power Co's Interest Coverage for the fiscal year that ended in Jul. 2025 is calculated as

Here, for the fiscal year that ended in Jul. 2025, Arun Valley Hydro Power Co's Interest Expense was NPR-38.4 Mil. Its Operating Income was NPR96.7 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR244.3 Mil.

Interest Coverage=-1* Operating Income (A: Jul. 2025 )/Interest Expense (A: Jul. 2025 )
=-1*96.706/-38.447
=2.52

Arun Valley Hydro Power Co's Interest Coverage for the quarter that ended in Jan. 2026 is calculated as

Here, for the three months ended in Jan. 2026, Arun Valley Hydro Power Co's Interest Expense was NPR-5.4 Mil. Its Operating Income was NPR50.0 Mil. And its Long-Term Debt & Capital Lease Obligation was NPR0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2026 )/Interest Expense (Q: Jan. 2026 )
=-1*50.008/-5.402
=9.26

* 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.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 9.26 mean?
Arun Valley Hydro Power Co (XNEP:AHPC) has a Interest Coverage of 9.26 as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Arun Valley Hydro Power Co and its competitors. This is 137% above median its historical median of 3.91. Over the past decade, Arun Valley Hydro Power Co's Interest Coverage has ranged from 0.66 to 649.93. According to the industry distribution chart, Arun Valley Hydro Power Co ranks #181 out of 449 companies in the Utilities - Regulated industry, placing it in the top 40.3%.
Is Arun Valley Hydro Power Co's Interest Coverage too high?
Arun Valley Hydro Power Co's current Interest Coverage of 9.26 is 137% above median its 10-year median of 3.91. Over the past 10 years, this metric has ranged from a low of 0.66 to a high of 649.93. The Utilities - Regulated industry median Interest Coverage is 3.78. Arun Valley Hydro Power Co's value of 9.26 is 145% above this industry median. Based on the distribution chart, Arun Valley Hydro Power Co ranks #181 out of 449 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Arun Valley Hydro Power Co has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arun Valley Hydro Power Co's Interest Coverage compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Arun Valley Hydro Power Co ranks #181 out of 449 companies for Interest Coverage. This puts Arun Valley Hydro Power Co in the upper half of its industry. The industry median Interest Coverage is 3.78. Arun Valley Hydro Power Co's value of 9.26 is 145% above this benchmark. Historically, Arun Valley Hydro Power Co's own Interest Coverage has ranged from 0.66 to 649.93 over the past decade. While the company's 10-year median is 3.91 vs. the industry median of 3.78, Arun Valley Hydro Power Co 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 Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 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. Arun Valley Hydro Power Co's current Interest Coverage of 9.26 is 145% 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 Arun Valley Hydro Power Co and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arun Valley Hydro Power Co's current Interest Coverage is 9.26, which is 137% above median its own 10-year median of 3.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arun Valley Hydro Power Co stock overvalued right now?
Based on GuruFocus' analysis, Arun Valley Hydro Power Co (XNEP:AHPC) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR322.29, compared to a current price of NPR261.50 — trading 18.9% below its estimated fair value. The current Interest Coverage is 9.26, which is 137% above median its 10-year median of 3.91 and 145% above the Utilities - Regulated industry median of 3.78. Arun Valley Hydro Power Co's overall GF Score™ is 93/100 with 4 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 Arun Valley Hydro Power Co (XNEP:AHPC), the current Interest Coverage is 9.26 as of Jan. 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 Arun Valley Hydro Power Co (XNEP:AHPC) Overvalued in 2026?

Based on GuruFocus' analysis, Arun Valley Hydro Power Co stock appears to be undervalued. The current stock price of NPR261.50 is trading 18.9% below its estimated GF Value™ of NPR322.29. GuruFocus considers Arun Valley Hydro Power Co to be Modestly Undervalued.

Key valuation signals for XNEP:AHPC:

  • Interest Coverage: 9.26 (137% above median its 10-year median of 3.91)
  • GF Value™: NPR322.29 vs. price of NPR261.50 (18.9% below fair value)
  • GF Score™: 93/100 with 4 warning signs
  • Industry Position: 145% above the Utilities - Regulated median (#181 of 449)

No single metric tells the full story. See the XNEP:AHPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Arun Valley Hydro Power Co Business Description

Address Trade Tower Nepal, 2nd Floor, Thapathali, Kathmandu, NPL
Arun Valley Hydro Power Co Ltd is a hydropower company. The company develops, builds, owns, and operates hydropower projects. Its projects include Pilowa Solar PV Project. The company is engaged in one segment, i.e. Generation and sale of electricity.
93GF Score

Get the complete analysis for XNEP:AHPC

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NPR261.50
Price
NPR322.29
GF Value