As of today (2026-06-25), Ascentage Pharma Group International's weighted average cost of capital is 6.64%%. Ascentage Pharma Group International's ROIC % is -57.65% (calculated using TTM income statement data).
Ascentage Pharma Group International 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.
Ascentage Pharma Group International (OTCPK:ASPHF) 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, Ascentage Pharma Group International's weighted average cost of capital is 6.64%%. Ascentage Pharma Group International's ROIC % is -57.65% (calculated using TTM income statement data).
Ascentage Pharma Group International 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 semi-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 TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Ascentage Pharma Group International 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.
For the Biotechnology subindustry, Ascentage Pharma Group International'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.
Ascentage Pharma Group International WACC % vs Biotechnology Industry
Ascentage Pharma Group International 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, Ascentage Pharma Group International's market capitalization (E) is $1513.203 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 semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Ascentage Pharma Group International's latest one-year semi-annual average Book Value of Debt (D) is $249.752 Mil.
a) weight of equity = E / (E + D) = 1513.203 / (1513.203 + 249.752) = 0.8583
b) weight of debt = D / (E + D) = 249.752 / (1513.203 + 249.752) = 0.1417
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 4.386%. 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. Ascentage Pharma Group International's beta is 0.4750.
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 = 4.386% + 0.4750 * 6% = 7.236%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, Ascentage Pharma Group International's interest expense (positive number) was $7.601 Mil. Its total Book Value of Debt (D) is $249.752 Mil.
Cost of Debt = 7.601 / 249.752 = 3.0434%.
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 = 0.971 / -173.907 = -0.56%, 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.
Ascentage Pharma Group International (ASPHF) has a WACC % of 6.64% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Ascentage Pharma Group International and its competitors. This is 27% below median its historical median of 9.15. Over the past decade, Ascentage Pharma Group International's WACC % has ranged from 6.74 to 165.13. According to the industry distribution chart, Ascentage Pharma Group International ranks #533 out of 1429 companies in the Biotechnology industry, placing it in the top 37.3%.
Is Ascentage Pharma Group International's WACC % too high?
Ascentage Pharma Group International's current WACC % of 6.64% is 27% below median its 10-year median of 9.15. Over the past 10 years, this metric has ranged from a low of 6.74 to a high of 165.13. The Biotechnology industry median WACC % is 10.04. Ascentage Pharma Group International's value of 6.64% is 33.9% below this industry median. Based on the distribution chart, Ascentage Pharma Group International ranks #533 out of 1429 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Ascentage Pharma Group International has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ascentage Pharma Group International's WACC % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Ascentage Pharma Group International ranks #533 out of 1429 companies for WACC %. This puts Ascentage Pharma Group International in the upper half of its industry. The industry median WACC % is 10.04. Ascentage Pharma Group International's value of 6.64% is 33.9% below this benchmark. Historically, Ascentage Pharma Group International's own WACC % has ranged from 6.74 to 165.13 over the past decade. While the company's 10-year median is 9.15 vs. the industry median of 10.04, Ascentage Pharma Group International has consistently been below 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 Biotechnology company?
The median WACC % among Biotechnology companies is 10.04, based on 1,429 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. Ascentage Pharma Group International's current WACC % of 6.64% is 33.9% below 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 Ascentage Pharma Group International and its competitors. For the Biotechnology industry, the median WACC % is 10.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ascentage Pharma Group International's current WACC % is 6.64%, which is 27% below median its own 10-year median of 9.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ascentage Pharma Group International stock overvalued right now?
Based on GuruFocus' analysis, Ascentage Pharma Group International (ASPHF) is currently considered Possible Value Trap. The stock's GF Value™ is $6.61, compared to a current price of $4.53 — trading 31.5% below its estimated fair value. The current WACC % is 6.64%, which is 27% below median its 10-year median of 9.15 and 33.9% below the Biotechnology industry median of 10.04. Ascentage Pharma Group International's overall GF Score™ is 71/100 with 7 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 Ascentage Pharma Group International (ASPHF), the current WACC % is 6.64% as of Jun. 25, 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 Ascentage Pharma Group International (ASPHF) Overvalued in 2026?
Based on GuruFocus' analysis, Ascentage Pharma Group International stock appears to be undervalued.
The current stock price of $4.53 is trading 31.5% below its estimated GF Value™ of $6.61.
GuruFocus considers Ascentage Pharma Group International to be Possible Value Trap.
Key valuation signals for ASPHF:
WACC %: 6.64% (27% below median its 10-year median of 9.15)
GF Value™: $6.61 vs. price of $4.53 (31.5% below fair value)
Industry Position: 33.9% below the Biotechnology median (#533 of 1429)
No single metric tells the full story. See the ASPHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ascentage Pharma Group International Business Description
Ascentage Pharma Group International is a clinical-stage biotechnology company engaged in the development and sales of novel small-scale therapies for cancers, hepatitis B virus, or HBV, and certain age-related diseases. It focuses on developing therapies that inhibit protein-protein interactions to restore apoptosis or programmed cell death. The Group has one reportable operating segment, which is discovering, developing, and commercializing therapies to address medical needs in hematological malignancies and currently has seven drug candidates in pipeline under research. The company's geographical segments include the United States and Mainland China.
71GF Score
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