Patria InvestmentsBSP:P2AX34 68 WACC % is 10.1% as of Jun. 27, 2026, which is 7% above its 10-year median of 9.47. GuruFocus rates BSP:P2AX34 with a GF Score™ of 68/100 and a GF Value™ of R$40.11 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,653 Asset Management companies, Patria Investments ranks worse than 75.08% on this metric.
As of today (2026-06-27), Patria Investments's weighted average cost of capital is 10.1%%. Patria Investments's ROIC % is 11.93% (calculated using TTM income statement data).
Patria Investments 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Patria Investments (BSP:P2AX34) 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, Patria Investments's weighted average cost of capital is 10.1%%. Patria Investments's ROIC % is 11.93% (calculated using TTM income statement data).
Patria Investments 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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
Patria Investments WACC % Historical Data
* Premium members only.
The historical data trend for Patria Investments'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 Asset Management subindustry, Patria Investments'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.
Patria Investments WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Patria Investments's WACC % distribution charts can be found below:
* The bar in red indicates where Patria Investments'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, Patria Investments's market capitalization (E) is R$4766.756 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 Dec. 2025, Patria Investments's latest one-year quarterly average Book Value of Debt (D) is R$1160.5948 Mil.
a) weight of equity = E / (E + D) = 4766.756 / (4766.756 + 1160.5948) = 0.8042
b) weight of debt = D / (E + D) = 1160.5948 / (4766.756 + 1160.5948) = 0.1958
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 4.376%. 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. Patria Investments's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 = 4.376% + 1 * 6% = 10.376%
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 Dec. 2025, Patria Investments's interest expense (positive number) was R$106.069 Mil. Its total Book Value of Debt (D) is R$1160.5948 Mil.
Cost of Debt = 106.069 / 1160.5948 = 9.1392%.
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 = 8.835 / 506.856 = 1.74%.
Patria Investments'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)
=
0.8042
*
10.376%
+
0.1958
*
9.1392%
*
(1 - 1.74%)
=
10.1%
* 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.
Patria Investments (BSP:P2AX34) has a WACC % of 10.1% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Patria Investments and its competitors. This is near median its historical median of 9.47. Over the past decade, Patria Investments' WACC % has ranged from 7.43 to 36.38. According to the industry distribution chart, Patria Investments ranks #1241 out of 1653 companies in the Asset Management industry, placing it in the top 75.1%.
Is Patria Investments' WACC % too high?
Patria Investments' current WACC % of 10.1% is near median its 10-year median of 9.47. Over the past 10 years, this metric has ranged from a low of 7.43 to a high of 36.38. The Asset Management industry median WACC % is 5.68. Patria Investments' value of 10.1% is 77.8% above this industry median. Based on the distribution chart, Patria Investments ranks #1241 out of 1653 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Patria Investments has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Patria Investments' WACC % compare to PDO and NAC?
According to the Asset Management industry distribution chart, Patria Investments ranks #1241 out of 1653 companies for WACC %. This places Patria Investments in the lower half of its industry. The industry median WACC % is 5.68. Patria Investments' value of 10.1% is 77.8% above this benchmark. Historically, Patria Investments' own WACC % has ranged from 7.43 to 36.38 over the past decade. While the company's 10-year median is 9.47 vs. the industry median of 5.68, Patria Investments 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 Asset Management company?
The median WACC % among Asset Management companies is 5.68, based on 1,653 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. Patria Investments's current WACC % of 10.1% is 77.8% 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 Patria Investments and its competitors. For the Asset Management industry, the median WACC % is 5.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Patria Investments's current WACC % is 10.1%, which is near median its own 10-year median of 9.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Patria Investments stock overvalued right now?
Based on GuruFocus' analysis, Patria Investments (BSP:P2AX34) is currently considered Modestly Undervalued. The stock's GF Value™ is R$40.11, compared to a current price of R$29.88 — trading 25.5% below its estimated fair value. The current WACC % is 10.1%, which is near median its 10-year median of 9.47 and 77.8% above the Asset Management industry median of 5.68. Patria Investments' overall GF Score™ is 68/100 with 7 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 Patria Investments (BSP:P2AX34), the current WACC % is 10.1% as of Jun. 27, 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 Patria Investments (BSP:P2AX34) Overvalued in 2026?
Based on GuruFocus' analysis, Patria Investments stock appears to be undervalued.
The current stock price of R$29.88 is trading 25.5% below its estimated GF Value™ of R$40.11.
GuruFocus considers Patria Investments to be Modestly Undervalued.
Key valuation signals for BSP:P2AX34:
WACC %: 10.1% (near median its 10-year median of 9.47)
GF Value™: R$40.11 vs. price of R$29.88 (25.5% below fair value)
Industry Position: 77.8% above the Asset Management median (#1241 of 1653)
No single metric tells the full story. See the BSP:P2AX34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Patria Investments Ltd is an alternative asset management firm specializing in resilient sectors across select regions. It seeks to provide world-wide and Latin American investors with attractive investment products that allows portfolio diversification and consistent returns. The group promotes inclusive and sustainable development in the Asset Classes: Private Equity, Private Equity Solutions, Credit, Real Estate, Infrastructure, and Public Equities Main sectors: Agribusiness, Power & Energy, Healthcare, Logistics & Transportations, Food & Beverage and Digital & Tech Services Investment Regions.
68GF Score
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