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Life Insurance NepalXNEP:LICN -0.01%82 Interest Coverage is 175.92 as of Apr. 2026, which is 2923% above its 10-year median of 5.82. GuruFocus rates XNEP:LICN with a GF Score™ of 82/100 and a GF Value™ of NPR891.53 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 350 Insurance companies, Life Insurance Nepal ranks better than 83.43% 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
EBIT
by its Interest Expense. Life Insurance Nepal's
EBIT
for the
three
months ended in Apr. 2026 was NPR699 Mil. Life Insurance Nepal's Interest Expense for the
three
months ended in Apr. 2026 was NPR-4 Mil.
Life Insurance Nepal's interest coverage for the quarter that ended in Apr. 2026 was 175.92.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Life Insurance Corp Nepal Ltd has enough cash to cover all of its debt. Its financial situation is stable.
The historical rank and industry rank for Life Insurance Nepal's Interest Coverage or its related term are showing as below:
XNEP:LICN'
s Interest Coverage Range Over the Past 10 Years
Min: 0.3 Med: 5.82 Max: 391.85
Current: 171.66
XNEP:LICN's Interest Coverage is ranked better than 83.43% of 350
companies
in the Insurance industry
Industry Median: 16.145
vs XNEP:LICN: 171.66
Life Insurance Nepal (XNEP:LICN) 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 .
Life Insurance Nepal Interest Coverage Related Terms
Life Insurance Nepal Interest Coverage Historical Data
* Premium members only.
The historical data trend for Life Insurance Nepal'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.
XNEP:LICN vs AFL, MET, PRU: Interest Coverage Comparison
For the Insurance - Life subindustry, Life Insurance Nepal'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.
Life Insurance Nepal Interest Coverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Life Insurance Nepal's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Life Insurance Nepal's Interest Coverage falls into.
Life Insurance Nepal 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.
Life Insurance Nepal (XNEP:LICN) has a Interest Coverage of 175.92 as of Apr. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Life Insurance Nepal and its competitors. This is 2923% above median its historical median of 5.82. Over the past decade, Life Insurance Nepal's Interest Coverage has ranged from 0.30 to 391.85. According to the industry distribution chart, Life Insurance Nepal ranks #58 out of 350 companies in the Insurance industry, placing it in the top 16.6%.
Is Life Insurance Nepal's Interest Coverage too high?
Life Insurance Nepal's current Interest Coverage of 175.92 is 2923% above median its 10-year median of 5.82. Over the past 10 years, this metric has ranged from a low of 0.30 to a high of 391.85. The Insurance industry median Interest Coverage is 16.15. Life Insurance Nepal's value of 175.92 is 989.6% above this industry median. Based on the distribution chart, Life Insurance Nepal ranks #58 out of 350 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Life Insurance Nepal has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Life Insurance Nepal's Interest Coverage compare to AFL and MET?
According to the Insurance industry distribution chart, Life Insurance Nepal ranks #58 out of 350 companies for Interest Coverage. This places Life Insurance Nepal in the top 17% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 16.15. Life Insurance Nepal's value of 175.92 is 989.6% above this benchmark. Historically, Life Insurance Nepal's own Interest Coverage has ranged from 0.30 to 391.85 over the past decade. While the company's 10-year median is 5.82 vs. the industry median of 16.15, Life Insurance Nepal 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 Insurance company?
The median Interest Coverage among Insurance companies is 16.15, based on 350 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. Life Insurance Nepal's current Interest Coverage of 175.92 is 989.6% 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 Life Insurance Nepal and its competitors. For the Insurance industry, the median Interest Coverage is 16.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Life Insurance Nepal's current Interest Coverage is 175.92, which is 2923% above median its own 10-year median of 5.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Life Insurance Nepal stock overvalued right now?
Based on GuruFocus' analysis, Life Insurance Nepal (XNEP:LICN) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR891.53, compared to a current price of NPR787.90 — trading 11.6% below its estimated fair value. The current Interest Coverage is 175.92, which is 2923% above median its 10-year median of 5.82 and 989.6% above the Insurance industry median of 16.15. Life Insurance Nepal's overall GF Score™ is 82/100 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 Life Insurance Nepal (XNEP:LICN), the current Interest Coverage is 175.92 as of Apr. 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 Life Insurance Nepal (XNEP:LICN) Overvalued in 2026?
Based on GuruFocus' analysis, Life Insurance Nepal stock appears to be undervalued.
The current stock price of NPR787.90 is trading 11.6% below its estimated GF Value™ of NPR891.53.
GuruFocus considers Life Insurance Nepal to be Modestly Undervalued.
Key valuation signals for XNEP:LICN:
Interest Coverage: 175.92 (2923% above median its 10-year median of 5.82)
GF Value™: NPR891.53 vs. price of NPR787.90 (11.6% below fair value)
Industry Position: 989.6% above the Insurance median (#58 of 350)
No single metric tells the full story. See the XNEP:LICN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Life Insurance Corp Nepal Ltd is engaged in the life insurance business in Nepal, providing participating and non-participating life insurance products through its provincial offices, branches, sub-branches, and network of agents. Its product portfolio includes endowment plans, child plans, and money-back plans, and it provides services such as reviving lapsed policies, policy loans, nominations, and bonuses to policyholders. Revenue is mainly generated from premiums and investments, including regular and single-premium collections, returns from investments in equities, bonds, and other financial instruments, service-related fees, and commission on reinsurance ceded.
82GF Score
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