Applied Aerospace & DefenseAADX -1.06%11 WACC % is 11.45% as of Jul. 13, 2026, which is 14% below its 10-year median of 13.34. GuruFocus rates AADX with a GF Score™ of 11/100. The stock has 3 warning signs investors should review. Among 361 Aerospace & Defense companies, Applied Aerospace & Defense ranks worse than 70.08% on this metric.
As of today (2026-07-13), Applied Aerospace & Defense's weighted average cost of capital is 11.45%%. Applied Aerospace & Defense's ROIC % is 6.24% (calculated using TTM income statement data).
Applied Aerospace & Defense earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Because it costs money to raise capital. A firm that generates higher ROIC % than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Applied Aerospace & Defense's weighted average cost of capital is 11.45%%. Applied Aerospace & Defense's ROIC % is 6.24% (calculated using TTM income statement data).
Applied Aerospace & Defense earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
Related Terms
Applied Aerospace & Defense WACC % Historical Data
* 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.
Applied Aerospace & Defense WACC % Chart
Applied Aerospace & Defense Annual Data
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Applied Aerospace & Defense Semi-Annual Data
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AADX vs YSS, ACHR, LUNR: WACC % Comparison
For the Aerospace & Defense subindustry, Applied Aerospace & Defense's WACC %, along with its competitors' market caps and WACC % 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.
Applied Aerospace & Defense WACC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Applied Aerospace & Defense's WACC % distribution charts can be found below:
* The bar in red indicates where Applied Aerospace & Defense's WACC % falls into.
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Applied Aerospace & Defense's market capitalization (E) is $3515.609 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Applied Aerospace & Defense's latest one-year annual average Book Value of Debt (D) is $639.545 Mil.
a) weight of equity = E / (E + D) = 3515.609 / (3515.609 + 639.545) = 0.8461
b) weight of debt = D / (E + D) = 639.545 / (3515.609 + 639.545) = 0.1539
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.581%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Applied Aerospace & Defense's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.581% + 1 * 6% = 10.581%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Dec. 2025, Applied Aerospace & Defense's interest expense (positive number) was $103.838 Mil. Its total Book Value of Debt (D) is $639.545 Mil.
Cost of Debt = 103.838 / 639.545 = 16.2362%.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated annual Tax Rate = 2.137 / -46.882 = -4.56%, which is less than 0%. Therefore it's set to 0%.
* 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.
Applied Aerospace & Defense (AADX) has a WACC % of 11.45% as of Jul. 13, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Applied Aerospace & Defense and its competitors. This is 14% below median its historical median of 13.34. Over the past decade, Applied Aerospace & Defense's WACC % has ranged from 10.44 to 16.24. According to the industry distribution chart, Applied Aerospace & Defense ranks #253 out of 361 companies in the Aerospace & Defense industry, placing it in the top 70.1%.
Is Applied Aerospace & Defense's WACC % too high?
Applied Aerospace & Defense's current WACC % of 11.45% is 14% below median its 10-year median of 13.34. Over the past 10 years, this metric has ranged from a low of 10.44 to a high of 16.24. The Aerospace & Defense industry median WACC % is 9.90. Applied Aerospace & Defense's value of 11.45% is 15.7% above this industry median. Based on the distribution chart, Applied Aerospace & Defense ranks #253 out of 361 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Applied Aerospace & Defense has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Applied Aerospace & Defense's WACC % compare to YSS and ACHR?
According to the Aerospace & Defense industry distribution chart, Applied Aerospace & Defense ranks #253 out of 361 companies for WACC %. This places Applied Aerospace & Defense in the lower half of its industry. The industry median WACC % is 9.90. Applied Aerospace & Defense's value of 11.45% is 15.7% above this benchmark. Historically, Applied Aerospace & Defense's own WACC % has ranged from 10.44 to 16.24 over the past decade. While the company's 10-year median is 13.34 vs. the industry median of 9.90, Applied Aerospace & Defense 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 WACC % for an Aerospace & Defense company?
The median WACC % among Aerospace & Defense companies is 9.90, based on 361 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Applied Aerospace & Defense's current WACC % of 11.45% is 15.7% 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 WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Applied Aerospace & Defense and its competitors. For the Aerospace & Defense industry, the median WACC % is 9.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Aerospace & Defense's current WACC % is 11.45%, which is 14% below median its own 10-year median of 13.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Aerospace & Defense stock overvalued right now?
Applied Aerospace & Defense (AADX) has a current WACC % of 11.45%. The current WACC % is 11.45%, which is 14% below median its 10-year median of 13.34 and 15.7% above the Aerospace & Defense industry median of 9.90. Applied Aerospace & Defense's overall GF Score™ is 11/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is WACC % calculated?
WACC % is calculated from a company's financial statements. For Applied Aerospace & Defense (AADX), the current WACC % is 11.45% as of Jul. 13, 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.
Applied Aerospace & Defense Inc specializes in providing engineering and vertically integrated manufacturing solutions for space and defense technology companies. The company builds complex hardware for extreme operating environments, combining deep material science and IP-enabled process expertise with the ability to enable rapid prototyping, enhance new product development, and responsively scale production. The majority of the company's revenue is derived from the sales of Defense Aviation and Airborne Systems, followed by Space and Launch Systems, C5ISR and Precision Strike Systems.
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