Bank of Ireland GroupBKRIY -0.74%71 WACC % is 9.85% as of Jun. 29, 2026, which is 68% above its 10-year median of 5.85. GuruFocus rates BKRIY with a GF Score™ of 71/100 and a GF Value™ of $12.26 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,546 Banks companies, Bank of Ireland Group ranks better than 56.86% on this metric.
As of today (2026-06-29), Bank of Ireland Group's weighted average cost of capital is 9.85%%. Bank of Ireland Group's ROIC % is 0.00% (calculated using TTM income statement data).
Bank of Ireland Group 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.
Bank of Ireland Group (OTCPK:BKRIY) 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, Bank of Ireland Group's weighted average cost of capital is 9.85%%. Bank of Ireland Group's ROIC % is 0.00% (calculated using TTM income statement data).
Bank of Ireland Group 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.
For the Banks - Regional subindustry, Bank of Ireland 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.
Bank of Ireland Group WACC % vs Banks Industry
For the Banks industry and Financial Services sector, Bank of Ireland Group's WACC % distribution charts can be found below:
* The bar in red indicates where Bank of Ireland 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, Bank of Ireland Group's market capitalization (E) is $18992.899 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, Bank of Ireland Group's latest one-year semi-annual average Book Value of Debt (D) is $12576.2857 Mil.
a) weight of equity = E / (E + D) = 18992.899 / (18992.899 + 12576.2857) = 0.6016
b) weight of debt = D / (E + D) = 12576.2857 / (18992.899 + 12576.2857) = 0.3984
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 3.2411%. 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. Bank of Ireland Group's beta is 0.5392.
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 = 3.2411% + 0.5392 * 6% = 6.4763%
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, Bank of Ireland Group's interest expense (positive number) was $2178.215 Mil. Its total Book Value of Debt (D) is $12576.2857 Mil.
Cost of Debt = 2178.215 / 12576.2857 = 17.32%.
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 = 222.84 / 1618.488 = 13.77%.
Bank of Ireland 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)
=
0.6016
*
6.4763%
+
0.3984
*
17.32%
*
(1 - 13.77%)
=
9.85%
* 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.
Bank of Ireland Group (BKRIY) has a WACC % of 9.85% 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 Bank of Ireland Group and its competitors. This is 68% above median its historical median of 5.85. Over the past decade, Bank of Ireland Group's WACC % has ranged from 4.29 to 13.63. According to the industry distribution chart, Bank of Ireland Group ranks #667 out of 1546 companies in the Banks industry, placing it in the top 43.1%.
Is Bank of Ireland Group's WACC % too high?
Bank of Ireland Group's current WACC % of 9.85% is 68% above median its 10-year median of 5.85. Over the past 10 years, this metric has ranged from a low of 4.29 to a high of 13.63. The Banks industry median WACC % is 13.18. Bank of Ireland Group's value of 9.85% is 25.2% below this industry median. Based on the distribution chart, Bank of Ireland Group ranks #667 out of 1546 companies in the Banks industry, which is above the industry midpoint. Overall, Bank of Ireland Group has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bank of Ireland Group's WACC % compare to PNC and USB?
According to the Banks industry distribution chart, Bank of Ireland Group ranks #667 out of 1546 companies for WACC %. This puts Bank of Ireland Group in the upper half of its industry. The industry median WACC % is 13.18. Bank of Ireland Group's value of 9.85% is 25.2% below this benchmark. Historically, Bank of Ireland Group's own WACC % has ranged from 4.29 to 13.63 over the past decade. While the company's 10-year median is 5.85 vs. the industry median of 13.18, Bank of Ireland Group 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 Banks company?
The median WACC % among Banks companies is 13.18, based on 1,546 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. Bank of Ireland Group's current WACC % of 9.85% is 25.2% 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 Bank of Ireland Group and its competitors. For the Banks industry, the median WACC % is 13.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bank of Ireland Group's current WACC % is 9.85%, which is 68% above median its own 10-year median of 5.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of Ireland Group stock overvalued right now?
Based on GuruFocus' analysis, Bank of Ireland Group (BKRIY) is currently considered Significantly Overvalued. The stock's GF Value™ is $12.26, compared to a current price of $19.99 — trading 63.1% above its estimated fair value. The current WACC % is 9.85%, which is 68% above median its 10-year median of 5.85 and 25.2% below the Banks industry median of 13.18. Bank of Ireland Group's overall GF Score™ is 71/100 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 Bank of Ireland Group (BKRIY), the current WACC % is 9.85% 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.
Is Bank of Ireland Group (BKRIY) Overvalued in 2026?
Based on GuruFocus' analysis, Bank of Ireland Group stock appears to be overvalued.
The current stock price of $19.99 is trading 63.1% above its estimated GF Value™ of $12.26.
GuruFocus considers Bank of Ireland Group to be Significantly Overvalued.
Key valuation signals for BKRIY:
WACC %: 9.85% (68% above median its 10-year median of 5.85)
GF Value™: $12.26 vs. price of $19.99 (63.1% above fair value)
Industry Position: 25.2% below the Banks median (#667 of 1546)
No single metric tells the full story. See the BKRIY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bank of Ireland Group PLC is an Irish financial services group operating mostly in Ireland and the United Kingdom. Services include mortgages, business, and corporate lending, term loans, leasing, foreign exchange, life assurance, and pension products, among others. The bank's trading divisions include Retail Ireland, Wealth and Insurance, Retail UK, Corporate and Commercial , and Group Centre. The bank generates the majority of its revenue from Retail Ireland and serves consumer and business customers across a broad range of segments and sectors. Revenue is also derived from fees for a range of banking and transaction services. The bank has access to distribution in the United Kingdom via its relationship as a financial services partner with the nation's post office.
71GF Score
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