IPD GroupASX:IPG -5.42%67 WACC % is 12.68% as of Jun. 26, 2026, which is 36% above its 10-year median of 9.30. GuruFocus rates ASX:IPG with a GF Score™ of 67/100 and a GF Value™ of A$5.93 (Fairly Valued). The stock has 6 warning signs investors should review. Among 3,093 Industrial Products companies, IPD Group ranks worse than 78.27% on this metric.
As of today (2026-06-26), IPD Group's weighted average cost of capital is 12.68%%. IPD Group's ROIC % is 17.65% (calculated using TTM income statement data).
IPD Group 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.
IPD Group (ASX:IPG) 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, IPD Group's weighted average cost of capital is 12.68%%. IPD Group's ROIC % is 17.65% (calculated using TTM income statement data).
IPD Group 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
IPD Group WACC % Historical Data
* Premium members only.
The historical data trend for IPD Group's WACC % can be seen below:
* 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 Specialty Industrial Machinery subindustry, IPD Group'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.
IPD Group WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, IPD Group's WACC % distribution charts can be found below:
* The bar in red indicates where IPD Group'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, IPD Group's market capitalization (E) is A$633.239 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, IPD Group's latest one-year semi-annual average Book Value of Debt (D) is A$51.4483 Mil.
a) weight of equity = E / (E + D) = 633.239 / (633.239 + 51.4483) = 0.9249
b) weight of debt = D / (E + D) = 51.4483 / (633.239 + 51.4483) = 0.0751
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 4.99%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. IPD Group's beta is 1.4624.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 4.99% + 1.4624 * 6% = 13.7644%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, IPD Group's interest expense (positive number) was A$-0.459 Mil. Its total Book Value of Debt (D) is A$51.4483 Mil.
Cost of Debt = -0.459 / 51.4483 = -0.8922%.
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 = 11.931 / 38.832 = 30.72%.
IPD Group'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)
=
0.9249
*
13.7644%
+
0.0751
*
-0.8922%
*
(1 - 30.72%)
=
12.68%
* 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.
IPD Group (ASX:IPG) has a WACC % of 12.68% 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 IPD Group and its competitors. This is 36% above median its historical median of 9.30. Over the past decade, IPD Group's WACC % has ranged from 8.87 to 12.71. According to the industry distribution chart, IPD Group ranks #2421 out of 3093 companies in the Industrial Products industry, placing it in the top 78.3%.
Is IPD Group's WACC % too high?
IPD Group's current WACC % of 12.68% is 36% above median its 10-year median of 9.30. Over the past 10 years, this metric has ranged from a low of 8.87 to a high of 12.71. The Industrial Products industry median WACC % is 9.77. IPD Group's value of 12.68% is 29.8% above this industry median. Based on the distribution chart, IPD Group ranks #2421 out of 3093 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, IPD Group has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does IPD Group's WACC % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, IPD Group ranks #2421 out of 3093 companies for WACC %. This places IPD Group in the lower half of its industry. The industry median WACC % is 9.77. IPD Group's value of 12.68% is 29.8% above this benchmark. Historically, IPD Group's own WACC % has ranged from 8.87 to 12.71 over the past decade. While the company's 10-year median is 9.30 vs. the industry median of 9.77, IPD Group 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 Industrial Products company?
The median WACC % among Industrial Products companies is 9.77, based on 3,093 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. IPD Group's current WACC % of 12.68% is 29.8% 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 IPD Group and its competitors. For the Industrial Products industry, the median WACC % is 9.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IPD Group's current WACC % is 12.68%, which is 36% above median its own 10-year median of 9.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IPD Group stock overvalued right now?
Based on GuruFocus' analysis, IPD Group (ASX:IPG) is currently considered Fairly Valued. The stock's GF Value™ is A$5.93, compared to a current price of A$5.76 — trading 2.9% below its estimated fair value. The current WACC % is 12.68%, which is 36% above median its 10-year median of 9.30 and 29.8% above the Industrial Products industry median of 9.77. IPD Group's overall GF Score™ is 67/100 with 6 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 IPD Group (ASX:IPG), the current WACC % is 12.68% 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 IPD Group (ASX:IPG) Overvalued in 2026?
Based on GuruFocus' analysis, IPD Group stock appears to be undervalued.
The current stock price of A$5.76 is trading 2.9% below its estimated GF Value™ of A$5.93.
GuruFocus considers IPD Group to be Fairly Valued.
Key valuation signals for ASX:IPG:
WACC %: 12.68% (36% above median its 10-year median of 9.30)
GF Value™: A$5.93 vs. price of A$5.76 (2.9% below fair value)
Industry Position: 29.8% above the Industrial Products median (#2421 of 3093)
No single metric tells the full story. See the ASX:IPG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IPD Group Ltd is a national distributor and service provider to the Australian electrical market. Its operating segment includes the Products division and Services division. The majority of the company's revenue is generated from its Products division, which is focused on the sale of electrical infrastructure products to customers, including switchboard manufacturers, electrical wholesalers, electrical contractors, power utilities, OEMs, and system integrators. It offers products across various categories such as power distribution, industrial and motor control, power monitoring, and electrical cables and cable plugs, among others. The Services division provides various services, including installation and commissioning, calibration and testing, maintenance and repairs, and refurbishment.
67GF Score
Get the complete analysis for ASX:IPG
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:IPG has been successfully added to your 
