United Overseas AustraliaASX:UOS 60 WACC % is 4.7% as of Jun. 25, 2026, which is 8% above its 10-year median of 4.36. GuruFocus rates ASX:UOS with a GF Score™ of 60/100 and a GF Value™ of A$0.92 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,841 Real Estate companies, United Overseas Australia ranks better than 67.14% on this metric.
As of today (2026-06-25), United Overseas Australia's weighted average cost of capital is 4.7%%. United Overseas Australia's ROIC % is 4.41% (calculated using TTM income statement data).
United Overseas Australia 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.
United Overseas Australia (ASX:UOS) 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, United Overseas Australia's weighted average cost of capital is 4.7%%. United Overseas Australia's ROIC % is 4.41% (calculated using TTM income statement data).
United Overseas Australia 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.
* 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.
United Overseas Australia WACC % Competitor Comparison
For the Real Estate - Development subindustry, United Overseas Australia'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.
United Overseas Australia WACC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, United Overseas Australia's WACC % distribution charts can be found below:
* The bar in red indicates where United Overseas Australia'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, United Overseas Australia's market capitalization (E) is A$1209.390 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, United Overseas Australia's latest one-year semi-annual average Book Value of Debt (D) is A$264.114 Mil.
a) weight of equity = E / (E + D) = 1209.390 / (1209.390 + 264.114) = 0.8208
b) weight of debt = D / (E + D) = 264.114 / (1209.390 + 264.114) = 0.1792
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 4.41%. 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. United Overseas Australia's beta is 0.1213.
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 = 4.41% + 0.1213 * 6% = 5.1378%
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, United Overseas Australia's interest expense (positive number) was A$8.623 Mil. Its total Book Value of Debt (D) is A$264.114 Mil.
Cost of Debt = 8.623 / 264.114 = 3.2649%.
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 = 47.894 / 268.021 = 17.87%.
* 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.
United Overseas Australia (ASX:UOS) has a WACC % of 4.7% 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 United Overseas Australia and its competitors. This is near median its historical median of 4.36. Over the past decade, United Overseas Australia's WACC % has ranged from 0.97 to 6.85. According to the industry distribution chart, United Overseas Australia ranks #605 out of 1841 companies in the Real Estate industry, placing it in the top 32.9%.
Is United Overseas Australia's WACC % too high?
United Overseas Australia's current WACC % of 4.7% is near median its 10-year median of 4.36. Over the past 10 years, this metric has ranged from a low of 0.97 to a high of 6.85. The Real Estate industry median WACC % is 6.55. United Overseas Australia's value of 4.7% is 28.2% below this industry median. Based on the distribution chart, United Overseas Australia ranks #605 out of 1841 companies in the Real Estate industry, which is above the industry midpoint. Overall, United Overseas Australia has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does United Overseas Australia's WACC % compare to competitors?
According to the Real Estate industry distribution chart, United Overseas Australia ranks #605 out of 1841 companies for WACC %. This puts United Overseas Australia in the upper half of its industry. The industry median WACC % is 6.55. United Overseas Australia's value of 4.7% is 28.2% below this benchmark. Historically, United Overseas Australia's own WACC % has ranged from 0.97 to 6.85 over the past decade. While the company's 10-year median is 4.36 vs. the industry median of 6.55, United Overseas Australia 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 Real Estate company?
The median WACC % among Real Estate companies is 6.55, based on 1,841 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. United Overseas Australia's current WACC % of 4.7% is 28.2% 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 United Overseas Australia and its competitors. For the Real Estate industry, the median WACC % is 6.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Overseas Australia's current WACC % is 4.7%, which is near median its own 10-year median of 4.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Overseas Australia stock overvalued right now?
Based on GuruFocus' analysis, United Overseas Australia (ASX:UOS) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.92, compared to a current price of A$0.69 — trading 25% below its estimated fair value. The current WACC % is 4.7%, which is near median its 10-year median of 4.36 and 28.2% below the Real Estate industry median of 6.55. United Overseas Australia's overall GF Score™ is 60/100 with 2 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 United Overseas Australia (ASX:UOS), the current WACC % is 4.7% 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 United Overseas Australia (ASX:UOS) Overvalued in 2026?
Based on GuruFocus' analysis, United Overseas Australia stock appears to be undervalued.
The current stock price of A$0.69 is trading 25% below its estimated GF Value™ of A$0.92.
GuruFocus considers United Overseas Australia to be Modestly Undervalued.
Key valuation signals for ASX:UOS:
WACC %: 4.7% (near median its 10-year median of 4.36)
GF Value™: A$0.92 vs. price of A$0.69 (25% below fair value)
Industry Position: 28.2% below the Real Estate median (#605 of 1841)
No single metric tells the full story. See the ASX:UOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Overseas Australia Ltd is a real estate development company. It is focused on the Development and resale of land and buildings, Investment in the form of rental properties, and others. The operating segments of the company are Investment, Land development & Resale, and Others. Its Investment segment includes the holding of investment properties to generate rental income, capital appreciation, or both. The land development and resale segment, which derives maximum revenue includes the development, construction, and sale of residential and commercial properties. The other segment includes operations of hotel and food and beverage outlets, provision of facilities support services, and car park operations.
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