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What is Hunan Huitong Advanced Materials Co WACC %?
Hunan Huitong Advanced Materials CoBJSE:920751 85 WACC % is 16.64% as of Jul. 16, 2026, which is 61% above its 10-year median of 10.33. GuruFocus rates BJSE:920751 with a GF Score™ of 85/100 and a GF Value™ of ¥14.90 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 3,087 Industrial Products companies, Hunan Huitong Advanced Materials Co ranks worse than 93.78% on this metric.
As of today (2026-07-16), Hunan Huitong Advanced Materials Co's weighted average cost of capital is 16.64%%. Hunan Huitong Advanced Materials Co's ROIC % is 18.44% (calculated using TTM income statement data).
Hunan Huitong Advanced Materials Co 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.
Hunan Huitong Advanced Materials Co (BJSE:920751) 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, Hunan Huitong Advanced Materials Co's weighted average cost of capital is 16.64%%. Hunan Huitong Advanced Materials Co's ROIC % is 18.44% (calculated using TTM income statement data).
Hunan Huitong Advanced Materials Co 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 quarterly 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 quarterly average debt to get the simplified cost of debt.
Related Terms
Hunan Huitong Advanced Materials Co 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 Metal Fabrication subindustry, Hunan Huitong Advanced Materials Co'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.
Hunan Huitong Advanced Materials Co WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hunan Huitong Advanced Materials Co's WACC % distribution charts can be found below:
* The bar in red indicates where Hunan Huitong Advanced Materials Co's WACC % falls into.
Hunan Huitong Advanced Materials Co 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, Hunan Huitong Advanced Materials Co's market capitalization (E) is ¥1583.735 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 quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Hunan Huitong Advanced Materials Co's latest one-year quarterly average Book Value of Debt (D) is ¥0 Mil.
a) weight of equity = E / (E + D) = 1583.735 / (1583.735 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (1583.735 + 0) = 0
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 4.586%. 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. Hunan Huitong Advanced Materials Co's beta is 2.0089.
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 = 4.586% + 2.0089 * 6% = 16.6394%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Hunan Huitong Advanced Materials Co's interest expense (positive number) was ¥2.595 Mil. Its total Book Value of Debt (D) is ¥0 Mil.
Cost of Debt = 2.595 / 0 = %.
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 = 5.612 / 53.029 = 10.58%.
* 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.
Hunan Huitong Advanced Materials Co (BJSE:920751) has a WACC % of 16.64% as of Jul. 16, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Hunan Huitong Advanced Materials Co and its competitors. This is 61% above median its historical median of 10.33. Over the past decade, Hunan Huitong Advanced Materials Co's WACC % has ranged from 9.68 to 24.94. According to the industry distribution chart, Hunan Huitong Advanced Materials Co ranks #2895 out of 3087 companies in the Industrial Products industry, placing it in the top 93.8%.
Is Hunan Huitong Advanced Materials Co's WACC % too high?
Hunan Huitong Advanced Materials Co's current WACC % of 16.64% is 61% above median its 10-year median of 10.33. Over the past 10 years, this metric has ranged from a low of 9.68 to a high of 24.94. The Industrial Products industry median WACC % is 9.69. Hunan Huitong Advanced Materials Co's value of 16.64% is 71.7% above this industry median. Based on the distribution chart, Hunan Huitong Advanced Materials Co ranks #2895 out of 3087 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Hunan Huitong Advanced Materials Co has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Huitong Advanced Materials Co's WACC % compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Hunan Huitong Advanced Materials Co ranks #2895 out of 3087 companies for WACC %. This places Hunan Huitong Advanced Materials Co in the lower half of its industry. The industry median WACC % is 9.69. Hunan Huitong Advanced Materials Co's value of 16.64% is 71.7% above this benchmark. Historically, Hunan Huitong Advanced Materials Co's own WACC % has ranged from 9.68 to 24.94 over the past decade. While the company's 10-year median is 10.33 vs. the industry median of 9.69, Hunan Huitong Advanced Materials Co 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 9.69, based on 3,087 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. Hunan Huitong Advanced Materials Co's current WACC % of 16.64% is 71.7% 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 Hunan Huitong Advanced Materials Co and its competitors. For the Industrial Products industry, the median WACC % is 9.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Huitong Advanced Materials Co's current WACC % is 16.64%, which is 61% above median its own 10-year median of 10.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Huitong Advanced Materials Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Huitong Advanced Materials Co (BJSE:920751) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥14.90, compared to a current price of ¥18.25 — trading 22.5% above its estimated fair value. The current WACC % is 16.64%, which is 61% above median its 10-year median of 10.33 and 71.7% above the Industrial Products industry median of 9.69. Hunan Huitong Advanced Materials Co's overall GF Score™ is 85/100 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 Hunan Huitong Advanced Materials Co (BJSE:920751), the current WACC % is 16.64% as of Jul. 16, 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 Hunan Huitong Advanced Materials Co (BJSE:920751) Overvalued in 2026?
Based on GuruFocus' analysis, Hunan Huitong Advanced Materials Co stock appears to be overvalued.
The current stock price of ¥18.25 is trading 22.5% above its estimated GF Value™ of ¥14.90.
GuruFocus considers Hunan Huitong Advanced Materials Co to be Modestly Overvalued.
Key valuation signals for BJSE:920751:
WACC %: 16.64% (61% above median its 10-year median of 10.33)
GF Value™: ¥14.90 vs. price of ¥18.25 (22.5% above fair value)
Industry Position: 71.7% above the Industrial Products median (#2895 of 3087)
No single metric tells the full story. See the BJSE:920751 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hunan Huitong Advanced Materials Co Business Description
Hunan Huitong Advanced Materials Co Ltd is engaged in research & development, production and sales of metal fibers and their products. The company has a complete metal fiber production line. The main products are: various metal fibers with a diameter of 2-100m (such as stainless steel fibers, iron-chromium-aluminum fibers, nickel fibers, titanium fibers, aluminum fibers, etc.) Widely used in automotive, textile, petroleum, chemical, military, communications and other fields.
85GF Score
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