RAYA (Erayak Power Solution Group) Effective Interest Rate on Debt %: 3.45% (As of Dec. 2025)

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RAYA Erayak Power Solution Group Inc RAYA
54 GF Score
Price $2.79
GF Value $2,175.38
Valuation Possible Value Trap
! 8 Warning Signs
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What is Erayak Power Solution Group Effective Interest Rate on Debt %?

Erayak Power Solution Group RAYA +1.64% 54 Effective Interest Rate on Debt % is 3.45% as of Dec. 2025. GuruFocus rates RAYA with a GF Score™ of 54/100 and a GF Value™ of $2,175.38 (Possible Value Trap). The stock has 8 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Erayak Power Solution Group's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was $0.41 Mil. Erayak Power Solution Group's average total debt for the quarter that ended in Dec. 2025 was $11.82 Mil. Therefore, Erayak Power Solution Group's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 3.45%.


Erayak Power Solution Group  (NAS:RAYA) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Erayak Power Solution Group Effective Interest Rate on Debt % Related Terms


Erayak Power Solution Group Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Erayak Power Solution Group's Effective Interest Rate on Debt % 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.

Erayak Power Solution Group Effective Interest Rate on Debt % Chart

Erayak Power Solution Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial 3.92 4.70 7.58 4.11 3.88

Erayak Power Solution Group Semi-Annual Data
Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.43 5.70 3.86 3.36 3.45

RAYA vs LNKS, CCTG, ELPW: Effective Interest Rate on Debt % Comparison

For the Electrical Equipment & Parts subindustry, Erayak Power Solution Group's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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.


Erayak Power Solution Group Effective Interest Rate on Debt % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Erayak Power Solution Group's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Erayak Power Solution Group's Effective Interest Rate on Debt % falls into.


RAYA
54GF Score
Erayak Power Solution Group Inc RAYA
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Erayak Power Solution Group Effective Interest Rate on Debt % Calculation

Erayak Power Solution Group's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -0.342/( (5.13+12.481)/ 2 )
=-1  *  -0.342/8.8055
=3.88 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3.913 + 1.217
=5.13

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3.409 + 9.072
=12.481

Erayak Power Solution Group's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jun. 2025 )+Total Debt  (Q: Dec. 2025 ))/ count )
=-1  *  -0.408/( (11.167+12.481)/ 2 )
=-1  *  -0.408/11.824
=3.45 %

where

Total Debt  (Q: Jun. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=6.049 + 5.118
=11.167

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=3.409 + 9.072
=12.481

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (Dec. 2025) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 3.45% mean?
Erayak Power Solution Group (RAYA) has a Effective Interest Rate on Debt % of 3.45% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Erayak Power Solution Group and its competitors.
Is Erayak Power Solution Group's Effective Interest Rate on Debt % too high?
Erayak Power Solution Group's current Effective Interest Rate on Debt % is 3.45%. Overall, Erayak Power Solution Group has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Erayak Power Solution Group's Effective Interest Rate on Debt % compare to LNKS and CCTG?
Erayak Power Solution Group's Effective Interest Rate on Debt % of 3.45% can be compared against companies in the Industrial Products industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Industrial Products company?
A good Effective Interest Rate on Debt % depends on the Industrial Products industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Erayak Power Solution Group and its competitors. Erayak Power Solution Group's current Effective Interest Rate on Debt % is 3.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Erayak Power Solution Group stock overvalued right now?
Based on GuruFocus' analysis, Erayak Power Solution Group (RAYA) is currently considered Possible Value Trap. The stock's GF Value™ is $2,175.38, compared to a current price of $2.79 — trading 99.9% below its estimated fair value. The current Effective Interest Rate on Debt % is 3.45%. Erayak Power Solution Group's overall GF Score™ is 54/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Erayak Power Solution Group (RAYA), the current Effective Interest Rate on Debt % is 3.45% 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 Erayak Power Solution Group (RAYA) Overvalued in 2026?

Based on GuruFocus' analysis, Erayak Power Solution Group stock appears to be undervalued. The current stock price of $2.79 is trading 99.9% below its estimated GF Value™ of $2,175.38. GuruFocus considers Erayak Power Solution Group to be Possible Value Trap.

Key valuation signals for RAYA:

  • Effective Interest Rate on Debt %: 3.45%
  • GF Value™: $2,175.38 vs. price of $2.79 (99.9% below fair value)
  • GF Score™: 54/100 with 8 warning signs

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


Erayak Power Solution Group Business Description

Address No. 528, 4th Avenue, Binhai Industrial Park, Zhejiang Province, Wenzhou, CHN, 325025
Erayak Power Solution Group Inc is engaged in the manufacturing, research and development (R&D), and wholesale and retail of power solution products. The group focuses on manufacturing new energy storage and inverter devices. Its product portfolio includes sine wave and off-grid inverters, inverters and gasoline generators, battery and smart chargers, and custom-designed products. The products are used principally in agricultural and industrial vehicles, recreational vehicles (RVs), electrical appliances, and outdoor living products. The company generates the majority of its revenue from Inverters. The company generates revenue from five main markets, which are China, Poland, Mexico, the U.K., and Portugal. It derives maximum revenue from China.
54GF Score

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.79
Price
$2,175.38
GF Value