Capital Bank of JordanAMM:CAPL 68 WACC % is 40.25% as of Jun. 26, 2026, which is 95% above its 10-year median of 20.60. GuruFocus rates AMM:CAPL with a GF Score™ of 68/100 and a GF Value™ of JOD2.90 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,543 Banks companies, Capital Bank of Jordan ranks worse than 95.27% on this metric.
As of today (2026-06-26), Capital Bank of Jordan's weighted average cost of capital is 40.25%%. Capital Bank of Jordan's ROIC % is 0.00% (calculated using TTM income statement data).
Capital Bank of Jordan 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.
Capital Bank of Jordan (AMM:CAPL) 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, Capital Bank of Jordan's weighted average cost of capital is 40.25%%. Capital Bank of Jordan's ROIC % is 0.00% (calculated using TTM income statement data).
Capital Bank of Jordan 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.
Capital Bank of Jordan WACC % Competitor Comparison
For the Banks - Regional subindustry, Capital Bank of Jordan'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.
Capital Bank of Jordan WACC % vs Banks Industry
For the Banks industry and Financial Services sector, Capital Bank of Jordan's WACC % distribution charts can be found below:
* The bar in red indicates where Capital Bank of Jordan'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, Capital Bank of Jordan's market capitalization (E) is JOD736.504 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, Capital Bank of Jordan's latest one-year quarterly average Book Value of Debt (D) is JOD286.841 Mil.
a) weight of equity = E / (E + D) = 736.504 / (736.504 + 286.841) = 0.7197
b) weight of debt = D / (E + D) = 286.841 / (736.504 + 286.841) = 0.2803
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 4.374%. 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. Capital Bank of Jordan'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 = 4.374% + 1 * 6% = 10.374%
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, Capital Bank of Jordan's interest expense (positive number) was JOD354.397 Mil. Its total Book Value of Debt (D) is JOD286.841 Mil.
Cost of Debt = 354.397 / 286.841 = 123.5517%.
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 = 11.82 / 221.513 = 5.34%.
Capital Bank of Jordan'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)
=
0.7197
*
10.374%
+
0.2803
*
123.5517%
*
(1 - 5.34%)
=
40.25%
* 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.
Capital Bank of Jordan (AMM:CAPL) has a WACC % of 40.25% as of Jun. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Capital Bank of Jordan and its competitors. This is 95% above median its historical median of 20.60. Over the past decade, Capital Bank of Jordan's WACC % has ranged from 13.10 to 46.75. According to the industry distribution chart, Capital Bank of Jordan ranks #1470 out of 1543 companies in the Banks industry, placing it in the top 95.3%.
Is Capital Bank of Jordan's WACC % too high?
Capital Bank of Jordan's current WACC % of 40.25% is 95% above median its 10-year median of 20.60. Over the past 10 years, this metric has ranged from a low of 13.10 to a high of 46.75. The Banks industry median WACC % is 13.20. Capital Bank of Jordan's value of 40.25% is 204.9% above this industry median. Based on the distribution chart, Capital Bank of Jordan ranks #1470 out of 1543 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Capital Bank of Jordan has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Capital Bank of Jordan's WACC % compare to competitors?
According to the Banks industry distribution chart, Capital Bank of Jordan ranks #1470 out of 1543 companies for WACC %. This places Capital Bank of Jordan in the lower half of its industry. The industry median WACC % is 13.20. Capital Bank of Jordan's value of 40.25% is 204.9% above this benchmark. Historically, Capital Bank of Jordan's own WACC % has ranged from 13.10 to 46.75 over the past decade. While the company's 10-year median is 20.60 vs. the industry median of 13.20, Capital Bank of Jordan 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 Banks company?
The median WACC % among Banks companies is 13.20, based on 1,543 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. Capital Bank of Jordan's current WACC % of 40.25% is 204.9% 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 Capital Bank of Jordan and its competitors. For the Banks industry, the median WACC % is 13.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Bank of Jordan's current WACC % is 40.25%, which is 95% above median its own 10-year median of 20.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Bank of Jordan stock overvalued right now?
Based on GuruFocus' analysis, Capital Bank of Jordan (AMM:CAPL) is currently considered Fairly Valued. The stock's GF Value™ is JOD2.90, compared to a current price of JOD2.80 — trading 3.4% below its estimated fair value. The current WACC % is 40.25%, which is 95% above median its 10-year median of 20.60 and 204.9% above the Banks industry median of 13.20. Capital Bank of Jordan's overall GF Score™ is 68/100 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 Capital Bank of Jordan (AMM:CAPL), the current WACC % is 40.25% as of Jun. 26, 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 Capital Bank of Jordan (AMM:CAPL) Overvalued in 2026?
Based on GuruFocus' analysis, Capital Bank of Jordan stock appears to be undervalued.
The current stock price of JOD2.80 is trading 3.4% below its estimated GF Value™ of JOD2.90.
GuruFocus considers Capital Bank of Jordan to be Fairly Valued.
Key valuation signals for AMM:CAPL:
WACC %: 40.25% (95% above median its 10-year median of 20.60)
GF Value™: JOD2.90 vs. price of JOD2.80 (3.4% below fair value)
Industry Position: 204.9% above the Banks median (#1470 of 1543)
No single metric tells the full story. See the AMM:CAPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital Bank of Jordan operates as a financial institution providing a comprehensive set of commercial and investment banking services. The company's operating segment includes Retail banking; Corporate banking; Corporate finance; Treasury and Other. It generates maximum revenue from the Corporate Banking segment. The Corporate banking segment includes monitoring deposits, credit facilities, and other banking facilities provided to corporate customers. Its Treasury segment is principally providing money market, trading, and treasury services, as well as the management of the Bank's funding operations. Geographically, it derives a majority of its revenue from Jordan.
68GF Score
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