Beam Communications HoldingsASX:BCC -4.00% WACC % is 14.12% as of Jun. 27, 2026, which is 64% above its 10-year median of 8.62. The stock has 6 warning signs investors should review. Among 2,512 Hardware companies, Beam Communications Holdings ranks worse than 88.97% on this metric.
As of today (2026-06-27), Beam Communications Holdings's weighted average cost of capital is 14.12%%. Beam Communications Holdings's ROIC % is 110.97% (calculated using TTM income statement data).
Beam Communications Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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, Beam Communications Holdings's weighted average cost of capital is 14.12%%. Beam Communications Holdings's ROIC % is 110.97% (calculated using TTM income statement data).
Beam Communications Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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
Beam Communications Holdings 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 Communication Equipment subindustry, Beam Communications Holdings'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.
Beam Communications Holdings WACC % vs Hardware Industry
For the Hardware industry and Technology sector, Beam Communications Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Beam Communications Holdings'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, Beam Communications Holdings's market capitalization (E) is A$4.148 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, Beam Communications Holdings's latest one-year semi-annual average Book Value of Debt (D) is A$0.8027 Mil.
a) weight of equity = E / (E + D) = 4.148 / (4.148 + 0.8027) = 0.8379
b) weight of debt = D / (E + D) = 0.8027 / (4.148 + 0.8027) = 0.1621
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 4.99%. 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. Beam Communications Holdings's beta is 1.7037.
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 = 4.99% + 1.7037 * 6% = 15.2122%
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, Beam Communications Holdings's interest expense (positive number) was A$0.068 Mil. Its total Book Value of Debt (D) is A$0.8027 Mil.
Cost of Debt = 0.068 / 0.8027 = 8.4714%.
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 / 1.124 = 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.
Beam Communications Holdings (ASX:BCC) has a WACC % of 14.12% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Beam Communications Holdings and its competitors. This is 64% above median its historical median of 8.62. According to the industry distribution chart, Beam Communications Holdings ranks #2235 out of 2512 companies in the Hardware industry, placing it in the top 89%.
Is Beam Communications Holdings' WACC % too high?
Beam Communications Holdings' current WACC % of 14.12% is 64% above median its 10-year median of 8.62. The Hardware industry median WACC % is 8.23. Beam Communications Holdings' value of 14.12% is 71.6% above this industry median. Based on the distribution chart, Beam Communications Holdings ranks #2235 out of 2512 companies in the Hardware industry, which is in the bottom quartile relative to peers.
How does Beam Communications Holdings' WACC % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Beam Communications Holdings ranks #2235 out of 2512 companies for WACC %. This places Beam Communications Holdings in the lower half of its industry. The industry median WACC % is 8.23. Beam Communications Holdings' value of 14.12% is 71.6% above this benchmark. While the company's 10-year median is 8.62 vs. the industry median of 8.23, Beam Communications Holdings 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 Hardware company?
The median WACC % among Hardware companies is 8.23, based on 2,512 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. Beam Communications Holdings's current WACC % of 14.12% is 71.6% 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 Beam Communications Holdings and its competitors. For the Hardware industry, the median WACC % is 8.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Beam Communications Holdings's current WACC % is 14.12%, which is 64% above median its own 10-year median of 8.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Beam Communications Holdings stock overvalued right now?
Based on GuruFocus' analysis, Beam Communications Holdings (ASX:BCC) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.17, compared to a current price of A$0.05 — trading 71.8% below its estimated fair value. The current WACC % is 14.12%, which is 64% above median its 10-year median of 8.62 and 71.6% above the Hardware industry median of 8.23. 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 Beam Communications Holdings (ASX:BCC), the current WACC % is 14.12% as of Jun. 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.
Beam Communications Holdings Ltd is a satellite telecommunications company. It designs, develops, manufactures, and distributes a range of satellite phone equipment and related services. The company offers satellite communication terminals, accessories, and data airtime services. Also, it provides handsets, accessories, SIM cards, and payment options on hardware, as well as pre-paid airtime services through SatPhoneShop.com, an online store. Its products are ZOLEO Global Satellite Com, Iridium GO and others. Geographically, the group generates revenue from Austrailia and Canada. The majority of its revenue is generated from Equipment sales.
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