RAPCO Investment PJSCADX:RAPCO 24 WACC % is 9.85% as of Jul. 12, 2026, which is 15% above its 10-year median of 8.56. GuruFocus rates ADX:RAPCO with a GF Score™ of 24/100. The stock has 5 warning signs investors should review. Among 1,653 Asset Management companies, RAPCO Investment PJSC ranks worse than 65.52% on this metric.
As of today (2026-07-12), RAPCO Investment PJSC's weighted average cost of capital is 9.85%%. RAPCO Investment PJSC's ROIC % is 6.00% (calculated using TTM income statement data).
RAPCO Investment PJSC 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, RAPCO Investment PJSC's weighted average cost of capital is 9.85%%. RAPCO Investment PJSC's ROIC % is 6.00% (calculated using TTM income statement data).
RAPCO Investment PJSC 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 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.
* 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 Asset Management subindustry, RAPCO Investment PJSC'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.
RAPCO Investment PJSC WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, RAPCO Investment PJSC's WACC % distribution charts can be found below:
* The bar in red indicates where RAPCO Investment PJSC'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, RAPCO Investment PJSC's market capitalization (E) is د.إ209.088 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, RAPCO Investment PJSC's latest one-year quarterly average Book Value of Debt (D) is د.إ27.035 Mil.
a) weight of equity = E / (E + D) = 209.088 / (209.088 + 27.035) = 0.8855
b) weight of debt = D / (E + D) = 27.035 / (209.088 + 27.035) = 0.1145
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 4.561%. 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. RAPCO Investment PJSC'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 = 4.561% + 1 * 6% = 10.561%
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, RAPCO Investment PJSC's interest expense (positive number) was د.إ1.244 Mil. Its total Book Value of Debt (D) is د.إ27.035 Mil.
Cost of Debt = 1.244 / 27.035 = 4.6014%.
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 = 1.336 / 22.705 = 5.88%.
RAPCO Investment PJSC'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)
=
0.8855
*
10.561%
+
0.1145
*
4.6014%
*
(1 - 5.88%)
=
9.85%
* 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.
RAPCO Investment PJSC (ADX:RAPCO) has a WACC % of 9.85% 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 RAPCO Investment PJSC and its competitors. This is 15% above median its historical median of 8.56. Over the past decade, RAPCO Investment PJSC's WACC % has ranged from 6.93 to 9.88. According to the industry distribution chart, RAPCO Investment PJSC ranks #1083 out of 1653 companies in the Asset Management industry, placing it in the top 65.5%.
Is RAPCO Investment PJSC's WACC % too high?
RAPCO Investment PJSC's current WACC % of 9.85% is 15% above median its 10-year median of 8.56. Over the past 10 years, this metric has ranged from a low of 6.93 to a high of 9.88. The Asset Management industry median WACC % is 8.49. RAPCO Investment PJSC's value of 9.85% is 16% above this industry median. Based on the distribution chart, RAPCO Investment PJSC ranks #1083 out of 1653 companies in the Asset Management industry, which is below the industry midpoint. Overall, RAPCO Investment PJSC has a GF Score™ of 24/100, reflecting its overall financial health beyond just this single metric.
How does RAPCO Investment PJSC's WACC % compare to BLK and BX?
According to the Asset Management industry distribution chart, RAPCO Investment PJSC ranks #1083 out of 1653 companies for WACC %. This places RAPCO Investment PJSC in the lower half of its industry. The industry median WACC % is 8.49. RAPCO Investment PJSC's value of 9.85% is 16% above this benchmark. Historically, RAPCO Investment PJSC's own WACC % has ranged from 6.93 to 9.88 over the past decade. While the company's 10-year median is 8.56 vs. the industry median of 8.49, RAPCO Investment PJSC 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 Asset Management company?
The median WACC % among Asset Management companies is 8.49, based on 1,653 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. RAPCO Investment PJSC's current WACC % of 9.85% is 16% 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 RAPCO Investment PJSC and its competitors. For the Asset Management industry, the median WACC % is 8.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RAPCO Investment PJSC's current WACC % is 9.85%, which is 15% above median its own 10-year median of 8.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RAPCO Investment PJSC stock overvalued right now?
RAPCO Investment PJSC (ADX:RAPCO) has a current WACC % of 9.85%. The current WACC % is 9.85%, which is 15% above median its 10-year median of 8.56 and 16% above the Asset Management industry median of 8.49. RAPCO Investment PJSC's overall GF Score™ is 24/100 with 5 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 RAPCO Investment PJSC (ADX:RAPCO), the current WACC % is 9.85% 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.
RAPCO Investment PJSC is engaged in commercial, real estate, and agricultural enterprise investment, institution, and management. The company is an investment company with a portfolio spanning across real estate, equity, capital markets, and venture funding. The principal activities of the Company consist of commercial enterprises investment, institution and management, real estate enterprises investment, development, institution and management, and agricultural enterprises investment, institution and management.
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