Locality Planning Energy HoldingsASX:LPE -10.67% WACC % is 6.61% as of Jun. 29, 2026, which is 54% below its 10-year median of 14.47. The stock has 3 warning signs investors should review. Among 514 Utilities - Regulated companies, Locality Planning Energy Holdings ranks worse than 55.06% on this metric.
As of today (2026-06-29), Locality Planning Energy Holdings's weighted average cost of capital is 6.61%%. Locality Planning Energy Holdings's ROIC % is -102.83% (calculated using TTM income statement data).
Locality Planning Energy Holdings 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.
Locality Planning Energy Holdings (ASX:LPE) 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, Locality Planning Energy Holdings's weighted average cost of capital is 6.61%%. Locality Planning Energy Holdings's ROIC % is -102.83% (calculated using TTM income statement data).
Locality Planning Energy Holdings 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
Locality Planning Energy 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 Utilities - Regulated Electric subindustry, Locality Planning Energy 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.
Locality Planning Energy Holdings WACC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Locality Planning Energy Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Locality Planning Energy Holdings's WACC % falls into.
Locality Planning Energy Holdings 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, Locality Planning Energy Holdings's market capitalization (E) is A$12.236 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, Locality Planning Energy Holdings's latest one-year semi-annual average Book Value of Debt (D) is A$1.6673 Mil.
a) weight of equity = E / (E + D) = 12.236 / (12.236 + 1.6673) = 0.8801
b) weight of debt = D / (E + D) = 1.6673 / (12.236 + 1.6673) = 0.1199
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. Locality Planning Energy Holdings's beta is 0.0949.
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% + 0.0949 * 6% = 5.5594%
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, Locality Planning Energy Holdings's interest expense (positive number) was A$0.239 Mil. Its total Book Value of Debt (D) is A$1.6673 Mil.
Cost of Debt = 0.239 / 1.6673 = 14.3346%.
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 / -3.687 = 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.
Locality Planning Energy Holdings (ASX:LPE) has a WACC % of 6.61% as of Jun. 29, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Locality Planning Energy Holdings and its competitors. This is 54% below median its historical median of 14.47. According to the industry distribution chart, Locality Planning Energy Holdings ranks #283 out of 514 companies in the Utilities - Regulated industry, placing it in the top 55.1%.
Is Locality Planning Energy Holdings' WACC % too high?
Locality Planning Energy Holdings' current WACC % of 6.61% is 54% below median its 10-year median of 14.47. The Utilities - Regulated industry median WACC % is 5.90. Locality Planning Energy Holdings' value of 6.61% is 12.1% above this industry median. Based on the distribution chart, Locality Planning Energy Holdings ranks #283 out of 514 companies in the Utilities - Regulated industry, which is below the industry midpoint.
How does Locality Planning Energy Holdings' WACC % compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Locality Planning Energy Holdings ranks #283 out of 514 companies for WACC %. This places Locality Planning Energy Holdings in the lower half of its industry. The industry median WACC % is 5.90. Locality Planning Energy Holdings' value of 6.61% is 12.1% above this benchmark. While the company's 10-year median is 14.47 vs. the industry median of 5.90, Locality Planning Energy 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 an Utilities - Regulated company?
The median WACC % among Utilities - Regulated companies is 5.90, based on 514 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. Locality Planning Energy Holdings's current WACC % of 6.61% is 12.1% 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 Locality Planning Energy Holdings and its competitors. For the Utilities - Regulated industry, the median WACC % is 5.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Locality Planning Energy Holdings's current WACC % is 6.61%, which is 54% below median its own 10-year median of 14.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locality Planning Energy Holdings stock overvalued right now?
Based on GuruFocus' analysis, Locality Planning Energy Holdings (ASX:LPE) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.10, compared to a current price of A$0.07 — trading 33% below its estimated fair value. The current WACC % is 6.61%, which is 54% below median its 10-year median of 14.47 and 12.1% above the Utilities - Regulated industry median of 5.90. 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 Locality Planning Energy Holdings (ASX:LPE), the current WACC % is 6.61% as of Jun. 29, 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.
Locality Planning Energy Holdings Business Description
Locality Planning Energy Holdings Ltd is an electricity retailer. It sells electricity and utility services to residential, commercial, and retail customers throughout the Australian National Electricity Market. It also installs and manages hot water supply infrastructure and behind-the-meter solar energy solutions, and battery systems for strata communities. The company generates its revenue from electricity sales.
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