Bayer AGXTER:BAYN +18.72%62 Interest Coverage is 7.44 as of Mar. 2026, which is 89% above its 10-year median of 3.94. GuruFocus rates XTER:BAYN with a GF Score™ of 62/100 and a GF Value™ of €27.37 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 685 Drug Manufacturers companies, Bayer AG ranks worse than 76.2% 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. Bayer AG's
Operating Income
for the
three
months ended in Mar. 2026 was €3,528 Mil. Bayer AG's Interest Expense for the
three
months ended in Mar. 2026 was €-474 Mil.
Bayer AG's interest coverage for the quarter that ended in Mar. 2026 was 7.44.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Bayer AG's Interest Coverage or its related term are showing as below:
XTER:BAYN'
s Interest Coverage Range Over the Past 10 Years
Min: 1.41 Med: 3.94 Max: 7.01
Current: 3.58
XTER:BAYN's Interest Coverage is ranked worse than 76.2% of 685
companies
in the Drug Manufacturers industry
Industry Median: 12.78
vs XTER:BAYN: 3.58
Bayer AG (XTER:BAYN) 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 .
Bayer AG Interest Coverage Related Terms
Bayer AG Interest Coverage Historical Data
* Premium members only.
The historical data trend for Bayer 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.
XTER:BAYN vs LLY, JNJ, ABBV: Interest Coverage Comparison
For the Drug Manufacturers - General subindustry, Bayer 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.
Bayer AG Interest Coverage vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Bayer AG's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Bayer 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.
Bayer AG (XTER:BAYN) has a Interest Coverage of 7.44 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Bayer AG and its competitors. This is 89% above median its historical median of 3.94. Over the past decade, Bayer AG's Interest Coverage has ranged from 1.41 to 7.01. According to the industry distribution chart, Bayer AG ranks #522 out of 685 companies in the Drug Manufacturers industry, placing it in the top 76.2%.
Is Bayer AG's Interest Coverage too high?
Bayer AG's current Interest Coverage of 7.44 is 89% above median its 10-year median of 3.94. Over the past 10 years, this metric has ranged from a low of 1.41 to a high of 7.01. The Drug Manufacturers industry median Interest Coverage is 12.78. Bayer AG's value of 7.44 is 41.8% below this industry median. Based on the distribution chart, Bayer AG ranks #522 out of 685 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Bayer AG has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bayer AG's Interest Coverage compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Bayer AG ranks #522 out of 685 companies for Interest Coverage. This places Bayer AG in the lower half of its industry. The industry median Interest Coverage is 12.78. Bayer AG's value of 7.44 is 41.8% below this benchmark. Historically, Bayer AG's own Interest Coverage has ranged from 1.41 to 7.01 over the past decade. While the company's 10-year median is 3.94 vs. the industry median of 12.78, Bayer 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. Bayer AG's current Interest Coverage of 7.44 is 41.8% 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 Bayer 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. Bayer AG's current Interest Coverage is 7.44, which is 89% above median its own 10-year median of 3.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bayer AG stock overvalued right now?
Based on GuruFocus' analysis, Bayer AG (XTER:BAYN) is currently considered Significantly Overvalued. The stock's GF Value™ is €27.37, compared to a current price of €47.00 — trading 71.7% above its estimated fair value. The current Interest Coverage is 7.44, which is 89% above median its 10-year median of 3.94 and 41.8% below the Drug Manufacturers industry median of 12.78. Bayer AG's overall GF Score™ is 62/100 with 2 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 Bayer AG (XTER:BAYN), the current Interest Coverage is 7.44 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 Bayer AG (XTER:BAYN) Overvalued in 2026?
Based on GuruFocus' analysis, Bayer AG stock appears to be overvalued.
The current stock price of €47.00 is trading 71.7% above its estimated GF Value™ of €27.37.
GuruFocus considers Bayer AG to be Significantly Overvalued.
Key valuation signals for XTER:BAYN:
Interest Coverage: 7.44 (89% above median its 10-year median of 3.94)
GF Value™: €27.37 vs. price of €47.00 (71.7% above fair value)
Industry Position: 41.8% below the Drug Manufacturers median (#522 of 685)
No single metric tells the full story. See the XTER:BAYN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bayer is a German healthcare and agriculture conglomerate. Healthcare provides close to half of the company's sales and includes pharmaceutical drugs (about 38% of total sales in 2025) as well as vitamins and other consumer healthcare products (13% of total). The firm's crop science business (47% of total) sells seeds, pesticides, herbicides, and fungicides, which was expanded through its 2018 acquisition of Monsanto.
62GF Score
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