Roche Holding AGXSWX:ROP +2.09%79 Interest Coverage is 12.46 as of Dec. 2025, which is 31% below its 10-year median of 18.09. GuruFocus rates XSWX:ROP with a GF Score™ of 79/100 and a GF Value™ of CHF264.69 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 685 Drug Manufacturers companies, Roche Holding AG ranks better than 51.68% 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. Roche Holding AG's
Operating Income
for the
six
months ended in Dec. 2025 was CHF8,146 Mil. Roche Holding AG's Interest Expense for the
six
months ended in Dec. 2025 was CHF-654 Mil.
Roche Holding AG's interest coverage for the quarter that ended in Dec. 2025 was 12.46.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Roche Holding AG's Interest Coverage or its related term are showing as below:
XSWX:ROP'
s Interest Coverage Range Over the Past 10 Years
Min: 9.56 Med: 18.09 Max: 43.33
Current: 13.73
XSWX:ROP's Interest Coverage is ranked better than 51.68% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs XSWX:ROP: 13.73
Roche Holding AG (XSWX:ROP) 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 .
Roche Holding AG Interest Coverage Related Terms
Roche Holding AG Interest Coverage Historical Data
* Premium members only.
The historical data trend for Roche Holding AG'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.
XSWX:ROP vs LLY, JNJ, ABBV: Interest Coverage Comparison
For the Drug Manufacturers - General subindustry, Roche Holding AG'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.
Roche Holding AG Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Roche Holding AG's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Roche Holding AG'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.
Roche Holding AG (XSWX:ROP) has a Interest Coverage of 12.46 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Roche Holding AG and its competitors. This is 31% below median its historical median of 18.09. Over the past decade, Roche Holding AG's Interest Coverage has ranged from 9.56 to 43.33. According to the industry distribution chart, Roche Holding AG ranks #331 out of 685 companies in the Drug Manufacturers industry, placing it in the top 48.3%.
Is Roche Holding AG's Interest Coverage too high?
Roche Holding AG's current Interest Coverage of 12.46 is 31% below median its 10-year median of 18.09. Over the past 10 years, this metric has ranged from a low of 9.56 to a high of 43.33. The Drug Manufacturers industry median Interest Coverage is 12.78. Roche Holding AG's value of 12.46 is 2.5% below this industry median. Based on the distribution chart, Roche Holding AG ranks #331 out of 685 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Roche Holding AG has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Roche Holding AG's Interest Coverage compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Roche Holding AG ranks #331 out of 685 companies for Interest Coverage. This puts Roche Holding AG in the upper half of its industry. The industry median Interest Coverage is 12.78. Roche Holding AG's value of 12.46 is 2.5% below this benchmark. Historically, Roche Holding AG's own Interest Coverage has ranged from 9.56 to 43.33 over the past decade. While the company's 10-year median is 18.09 vs. the industry median of 12.78, Roche Holding AG 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 Drug Manufacturers company?
The median Interest Coverage among Drug Manufacturers companies is 12.78, based on 685 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. Roche Holding AG's current Interest Coverage of 12.46 is 2.5% 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 Roche Holding AG and its competitors. For the Drug Manufacturers industry, the median Interest Coverage is 12.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Roche Holding AG's current Interest Coverage is 12.46, which is 31% below median its own 10-year median of 18.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Roche Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Roche Holding AG (XSWX:ROP) is currently considered Modestly Overvalued. The stock's GF Value™ is CHF264.69, compared to a current price of CHF332.00 — trading 25.4% above its estimated fair value. The current Interest Coverage is 12.46, which is 31% below median its 10-year median of 18.09 and 2.5% below the Drug Manufacturers industry median of 12.78. Roche Holding AG's overall GF Score™ is 79/100 with 3 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 Roche Holding AG (XSWX:ROP), the current Interest Coverage is 12.46 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 Roche Holding AG (XSWX:ROP) Overvalued in 2026?
Based on GuruFocus' analysis, Roche Holding AG stock appears to be overvalued.
The current stock price of CHF332.00 is trading 25.4% above its estimated GF Value™ of CHF264.69.
GuruFocus considers Roche Holding AG to be Modestly Overvalued.
Key valuation signals for XSWX:ROP:
Interest Coverage: 12.46 (31% below median its 10-year median of 18.09)
GF Value™: CHF264.69 vs. price of CHF332.00 (25.4% above fair value)
Industry Position: 2.5% below the Drug Manufacturers median (#331 of 685)
No single metric tells the full story. See the XSWX:ROP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Roche is a Swiss biopharmaceutical and diagnostic company. The firm's bestselling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008. Oncology products account for 40% of pharmaceutical sales, and centralized and point-of-care diagnostics for two-thirds of diagnostic-related sales.
79GF Score
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