ProFrac HoldingACDC +0.20%65 WACC % is 13.2% as of Jul. 12, 2026, which is 17% above its 10-year median of 11.31. GuruFocus rates ACDC with a GF Score™ of 65/100 and a GF Value™ of $4.36 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,034 Oil & Gas companies, ProFrac Holding ranks worse than 91.1% on this metric.
As of today (2026-07-12), ProFrac Holding's weighted average cost of capital is 13.2%%. ProFrac Holding's ROIC % is -8.07% (calculated using TTM income statement data).
ProFrac Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
ProFrac Holding (NAS:ACDC) WACC % Explanation
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, ProFrac Holding's weighted average cost of capital is 13.2%%. ProFrac Holding's ROIC % is -8.07% (calculated using TTM income statement data).
ProFrac Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly 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 TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
Related Terms
ProFrac Holding WACC % Historical Data
* Premium members only.
The historical data trend for ProFrac Holding's WACC % 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.
For the Oil & Gas Equipment & Services subindustry, ProFrac Holding'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.
ProFrac Holding WACC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, ProFrac Holding's WACC % distribution charts can be found below:
* The bar in red indicates where ProFrac Holding'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, ProFrac Holding's market capitalization (E) is $890.130 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 quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, ProFrac Holding's latest one-year quarterly average Book Value of Debt (D) is $1223.06 Mil.
a) weight of equity = E / (E + D) = 890.130 / (890.130 + 1223.06) = 0.4212
b) weight of debt = D / (E + D) = 1223.06 / (890.130 + 1223.06) = 0.5788
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 4.585%. 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. ProFrac Holding's beta is 1.9860.
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 = 4.585% + 1.9860 * 6% = 16.501%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, ProFrac Holding's interest expense (positive number) was $135.7 Mil. Its total Book Value of Debt (D) is $1223.06 Mil.
Cost of Debt = 135.7 / 1223.06 = 11.0951%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM 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 TTM Tax Rate = -11.6 / -428.8 = 2.71%.
ProFrac Holding's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.4212
*
16.501%
+
0.5788
*
11.0951%
*
(1 - 2.71%)
=
13.2%
* 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.
ProFrac Holding (ACDC) has a WACC % of 13.2% as of Jul. 12, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on ProFrac Holding and its competitors. This is 17% above median its historical median of 11.31. Over the past decade, ProFrac Holding's WACC % has ranged from 8.90 to 13.50. According to the industry distribution chart, ProFrac Holding ranks #942 out of 1034 companies in the Oil & Gas industry, placing it in the top 91.1%.
Is ProFrac Holding's WACC % too high?
ProFrac Holding's current WACC % of 13.2% is 17% above median its 10-year median of 11.31. Over the past 10 years, this metric has ranged from a low of 8.90 to a high of 13.50. The Oil & Gas industry median WACC % is 7.37. ProFrac Holding's value of 13.2% is 79.1% above this industry median. Based on the distribution chart, ProFrac Holding ranks #942 out of 1034 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, ProFrac Holding has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ProFrac Holding's WACC % compare to FLOC and HMH?
According to the Oil & Gas industry distribution chart, ProFrac Holding ranks #942 out of 1034 companies for WACC %. This places ProFrac Holding in the lower half of its industry. The industry median WACC % is 7.37. ProFrac Holding's value of 13.2% is 79.1% above this benchmark. Historically, ProFrac Holding's own WACC % has ranged from 8.90 to 13.50 over the past decade. While the company's 10-year median is 11.31 vs. the industry median of 7.37, ProFrac Holding 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 Oil & Gas company?
The median WACC % among Oil & Gas companies is 7.37, based on 1,034 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. ProFrac Holding's current WACC % of 13.2% is 79.1% 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 ProFrac Holding and its competitors. For the Oil & Gas industry, the median WACC % is 7.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ProFrac Holding's current WACC % is 13.2%, which is 17% above median its own 10-year median of 11.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ProFrac Holding stock overvalued right now?
Based on GuruFocus' analysis, ProFrac Holding (ACDC) is currently considered Modestly Overvalued. The stock's GF Value™ is $4.36, compared to a current price of $4.92 — trading 12.8% above its estimated fair value. The current WACC % is 13.2%, which is 17% above median its 10-year median of 11.31 and 79.1% above the Oil & Gas industry median of 7.37. ProFrac Holding's overall GF Score™ is 65/100 with 4 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 ProFrac Holding (ACDC), the current WACC % is 13.2% as of Jul. 12, 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 ProFrac Holding (ACDC) Overvalued in 2026?
Based on GuruFocus' analysis, ProFrac Holding stock appears to be overvalued.
The current stock price of $4.92 is trading 12.8% above its estimated GF Value™ of $4.36.
GuruFocus considers ProFrac Holding to be Modestly Overvalued.
Key valuation signals for ACDC:
WACC %: 13.2% (17% above median its 10-year median of 11.31)
GF Value™: $4.36 vs. price of $4.92 (12.8% above fair value)
Industry Position: 79.1% above the Oil & Gas median (#942 of 1034)
No single metric tells the full story. See the ACDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ProFrac Holding Corp is a technology-focused, vertically integrated energy services company providing hydraulic fracturing, proppant production, completion services, and related products, including distributed power generation, to upstream oil and natural gas companies in the United States. The Company operates through four segments: Stimulation Services, Proppant Production, Manufacturing, and Flotek. The Stimulation Services segment, which generates maximum revenue, provides hydraulic fracturing services using mobile units and auxiliary equipment. The Proppant Production segment supplies proppant, the Manufacturing segment sells engineered products such as pumps, valves, and piping, and Flotek is a chemistry and data technology company serving the E&P industry.
65GF Score
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