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*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.
Ras Al Khaimah Co for White Cementnstruction Materials (ADX:RAKWCT) 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, Ras Al Khaimah Co for White Cementnstruction Materials's weighted average cost of capital is 10.61%%. Ras Al Khaimah Co for White Cementnstruction Materials's ROIC % is 4.21% (calculated using TTM income statement data).
Ras Al Khaimah Co for White Cementnstruction Materials 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
Ras Al Khaimah Co for White Cementnstruction Materials 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.
Ras Al Khaimah Co for White Cementnstruction Materials WACC % Chart
Ras Al Khaimah Co for White Cementnstruction Materials Annual Data
* 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.
Ras Al Khaimah Co for White Cementnstruction Materials WACC % vs Building Materials Industry
Ras Al Khaimah Co for White Cementnstruction Materials WACC % Calculation
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, Ras Al Khaimah Co for White Cementnstruction Materials's market capitalization (E) is د.إ494.655 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 Mar. 2026, Ras Al Khaimah Co for White Cementnstruction Materials's latest one-year annual average Book Value of Debt (D) is د.إ2.767 Mil.
a) weight of equity = E / (E + D) = 494.655 / (494.655 + 2.767) = 0.9944
b) weight of debt = D / (E + D) = 2.767 / (494.655 + 2.767) = 0.0056
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 4.639%. 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. Ras Al Khaimah Co for White Cementnstruction Materials'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 = 4.639% + 1 * 6% = 10.639%
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 Mar. 2026, Ras Al Khaimah Co for White Cementnstruction Materials's interest expense (positive number) was د.إ0.145 Mil. Its total Book Value of Debt (D) is د.إ2.767 Mil.
Cost of Debt = 0.145 / 2.767 = 5.2403%.
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 = 4.648 / 42.073 = 11.05%.
* 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.
Ras Al Khaimah Co for White Cementnstruction Materials (ADX:RAKWCT) has a WACC % of 10.61% as of Jul. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Ras Al Khaimah Co for White Cementnstruction Materials and its competitors. This is 50% above median its historical median of 7.08. Over the past decade, Ras Al Khaimah Co for White Cementnstruction Materials' WACC % has ranged from 6.10 to 10.65. According to the industry distribution chart, Ras Al Khaimah Co for White Cementnstruction Materials ranks #312 out of 414 companies in the Building Materials industry, placing it in the top 75.4%.
Is Ras Al Khaimah Co for White Cementnstruction Materials' WACC % too high?
Ras Al Khaimah Co for White Cementnstruction Materials' current WACC % of 10.61% is 50% above median its 10-year median of 7.08. Over the past 10 years, this metric has ranged from a low of 6.10 to a high of 10.65. The Building Materials industry median WACC % is 8.59. Ras Al Khaimah Co for White Cementnstruction Materials' value of 10.61% is 23.6% above this industry median. Based on the distribution chart, Ras Al Khaimah Co for White Cementnstruction Materials ranks #312 out of 414 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, Ras Al Khaimah Co for White Cementnstruction Materials has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ras Al Khaimah Co for White Cementnstruction Materials' WACC % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Ras Al Khaimah Co for White Cementnstruction Materials ranks #312 out of 414 companies for WACC %. This places Ras Al Khaimah Co for White Cementnstruction Materials in the lower half of its industry. The industry median WACC % is 8.59. Ras Al Khaimah Co for White Cementnstruction Materials' value of 10.61% is 23.6% above this benchmark. Historically, Ras Al Khaimah Co for White Cementnstruction Materials' own WACC % has ranged from 6.10 to 10.65 over the past decade. While the company's 10-year median is 7.08 vs. the industry median of 8.59, Ras Al Khaimah Co for White Cementnstruction Materials 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 a Building Materials company?
The median WACC % among Building Materials companies is 8.59, based on 414 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. Ras Al Khaimah Co for White Cementnstruction Materials's current WACC % of 10.61% is 23.6% 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 Ras Al Khaimah Co for White Cementnstruction Materials and its competitors. For the Building Materials industry, the median WACC % is 8.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ras Al Khaimah Co for White Cementnstruction Materials's current WACC % is 10.61%, which is 50% above median its own 10-year median of 7.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ras Al Khaimah Co for White Cementnstruction Materials stock overvalued right now?
Based on GuruFocus' analysis, Ras Al Khaimah Co for White Cementnstruction Materials (ADX:RAKWCT) is currently considered Modestly Undervalued. The stock's GF Value™ is د.إ1.24, compared to a current price of د.إ0.99 — trading 20.2% below its estimated fair value. The current WACC % is 10.61%, which is 50% above median its 10-year median of 7.08 and 23.6% above the Building Materials industry median of 8.59. Ras Al Khaimah Co for White Cementnstruction Materials' overall GF Score™ is 72/100 with 2 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 Ras Al Khaimah Co for White Cementnstruction Materials (ADX:RAKWCT), the current WACC % is 10.61% as of Jul. 27, 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 Ras Al Khaimah Co for White Cementnstruction Materials (ADX:RAKWCT) Overvalued in 2026?
Based on GuruFocus' analysis, Ras Al Khaimah Co for White Cementnstruction Materials stock appears to be undervalued.
The current stock price of د.إ0.99 is trading 20.2% below its estimated GF Value™ of د.إ1.24.
GuruFocus considers Ras Al Khaimah Co for White Cementnstruction Materials to be Modestly Undervalued.
Key valuation signals for ADX:RAKWCT:
WACC %: 10.61% (50% above median its 10-year median of 7.08)
GF Value™: د.إ1.24 vs. price of د.إ0.99 (20.2% below fair value)
Industry Position: 23.6% above the Building Materials median (#312 of 414)
No single metric tells the full story. See the ADX:RAKWCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ras Al Khaimah Co for White Cementnstruction Materials Business Description
Ras Al Khaimah Co for White Cement & Construction Materials is engaged in the production of cement, building materials, and lime. The principal activities of the company are to manufacture and supply white cement, lime, and cement products. The company operates through two business segments which include Manufacturing and Investments. The manufacturing segment which generates the majority of the company's revenue. represents the manufacture and distribution of cement products, concrete blocks, and interlock tiles. The investment segment consists of investments in marketable equity securities and deposits with banks. Geographically, the company derives its key revenue from India and the rest from Jordan, Yemen, United Arab Emirates, and other countries.
72GF Score
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