Smart PowerrCREG -2.39%33 WACC % is 27.39% as of Jun. 25, 2026, which is 367% above its 10-year median of 5.87. GuruFocus rates CREG with a GF Score™ of 33/100. The stock has 2 warning signs investors should review. Among 477 Utilities - Independent Power Producers companies, Smart Powerr ranks worse than 99.58% on this metric.
As of today (2026-06-25), Smart Powerr's weighted average cost of capital is 27.39%%. Smart Powerr's ROIC % is -7.24% (calculated using TTM income statement data).
Smart Powerr 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.
Smart Powerr (NAS:CREG) 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, Smart Powerr's weighted average cost of capital is 27.39%%. Smart Powerr's ROIC % is -7.24% (calculated using TTM income statement data).
Smart Powerr 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 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
Smart Powerr WACC % Historical Data
* Premium members only.
The historical data trend for Smart Powerr'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 Utilities - Renewable subindustry, Smart Powerr'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.
Smart Powerr WACC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Smart Powerr's WACC % distribution charts can be found below:
* The bar in red indicates where Smart Powerr'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, Smart Powerr's market capitalization (E) is $6.151 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, Smart Powerr's latest one-year quarterly average Book Value of Debt (D) is $3.0076 Mil.
a) weight of equity = E / (E + D) = 6.151 / (6.151 + 3.0076) = 0.6716
b) weight of debt = D / (E + D) = 3.0076 / (6.151 + 3.0076) = 0.3284
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 4.4%. 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. Smart Powerr's beta is 4.7560.
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 = 4.4% + 4.7560 * 6% = 32.936%
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, Smart Powerr's interest expense (positive number) was $0.483 Mil. Its total Book Value of Debt (D) is $3.0076 Mil.
Cost of Debt = 0.483 / 3.0076 = 16.0593%.
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 = 0.08 / -2.483 = -3.22%, which is less than 0%. Therefore it's set to 0%.
Smart Powerr'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)
=
0.6716
*
32.936%
+
0.3284
*
16.0593%
*
(1 - 0%)
=
27.39%
* 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.
Smart Powerr (CREG) has a WACC % of 27.39% 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 Smart Powerr and its competitors. This is 367% above median its historical median of 5.87. Over the past decade, Smart Powerr's WACC % has ranged from 4.39 to 27.51. According to the industry distribution chart, Smart Powerr ranks #475 out of 477 companies in the Utilities - Independent Power Producers industry, placing it in the top 99.6%.
Is Smart Powerr's WACC % too high?
Smart Powerr's current WACC % of 27.39% is 367% above median its 10-year median of 5.87. Over the past 10 years, this metric has ranged from a low of 4.39 to a high of 27.51. The Utilities - Independent Power Producers industry median WACC % is 7.83. Smart Powerr's value of 27.39% is 249.8% above this industry median. Based on the distribution chart, Smart Powerr ranks #475 out of 477 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Smart Powerr has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does Smart Powerr's WACC % compare to CLNV and HTOO?
According to the Utilities - Independent Power Producers industry distribution chart, Smart Powerr ranks #475 out of 477 companies for WACC %. This places Smart Powerr in the lower half of its industry. The industry median WACC % is 7.83. Smart Powerr's value of 27.39% is 249.8% above this benchmark. Historically, Smart Powerr's own WACC % has ranged from 4.39 to 27.51 over the past decade. While the company's 10-year median is 5.87 vs. the industry median of 7.83, Smart Powerr 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 - Independent Power Producers company?
The median WACC % among Utilities - Independent Power Producers companies is 7.83, based on 477 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. Smart Powerr's current WACC % of 27.39% is 249.8% 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 Smart Powerr and its competitors. For the Utilities - Independent Power Producers industry, the median WACC % is 7.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart Powerr's current WACC % is 27.39%, which is 367% above median its own 10-year median of 5.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart Powerr stock overvalued right now?
Smart Powerr (CREG) has a current WACC % of 27.39%. The current WACC % is 27.39%, which is 367% above median its 10-year median of 5.87 and 249.8% above the Utilities - Independent Power Producers industry median of 7.83. Smart Powerr's overall GF Score™ is 33/100 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 Smart Powerr (CREG), the current WACC % is 27.39% 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.
Smart Powerr Corp is engaged in waste energy recycling and is a developer of energy efficiency solutions for various energy intensive industries in China. It uses Build-Operate-Transfer (BOT) model to provide energy saving and recovery facilities for multiple energy intensive industries in China. Its waste energy recycling projects allow customers which use substantial amounts of electricity to recapture previously wasted pressure, heat, and gas from their manufacturing processes to generate electricity. It provides a clean-technology and energy-efficient solution aimed at reducing the air pollution and energy shortage problems in China. The company's operations are conducted in one industry segment. All of its assets are located in the PRC.
33GF Score
Get the complete analysis for CREG
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CREG has been successfully added to your 
