Colt CZ Group SECZGZF 84 WACC % is 6.42% as of Jul. 02, 2026, which is 26% above its 10-year median of 5.11. GuruFocus rates CZGZF with a GF Score™ of 84/100 and a GF Value™ of $35.24 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 359 Aerospace & Defense companies, Colt CZ Group SE ranks better than 70.47% on this metric.
As of today (2026-07-02), Colt CZ Group SE's weighted average cost of capital is 6.42%%. Colt CZ Group SE's ROIC % is 6.11% (calculated using TTM income statement data).
Colt CZ Group SE 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.
Colt CZ Group SE (OTCPK:CZGZF) 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, Colt CZ Group SE's weighted average cost of capital is 6.42%%. Colt CZ Group SE's ROIC % is 6.11% (calculated using TTM income statement data).
Colt CZ Group SE 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
Colt CZ Group SE WACC % Historical Data
* Premium members only.
The historical data trend for Colt CZ Group SE'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 Aerospace & Defense subindustry, Colt CZ Group SE'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.
Colt CZ Group SE WACC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Colt CZ Group SE's WACC % distribution charts can be found below:
* The bar in red indicates where Colt CZ Group SE'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, Colt CZ Group SE's market capitalization (E) is $3078.444 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, Colt CZ Group SE's latest one-year quarterly average Book Value of Debt (D) is $878.545 Mil.
a) weight of equity = E / (E + D) = 3078.444 / (3078.444 + 878.545) = 0.778
b) weight of debt = D / (E + D) = 878.545 / (3078.444 + 878.545) = 0.222
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 4.7383%. 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. Colt CZ Group SE's beta is 0.3469.
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 = 4.7383% + 0.3469 * 6% = 6.8197%
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, Colt CZ Group SE's interest expense (positive number) was $55.173 Mil. Its total Book Value of Debt (D) is $878.545 Mil.
Cost of Debt = 55.173 / 878.545 = 6.28%.
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 = 26.627 / 133.217 = 19.99%.
Colt CZ Group SE'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)
=
0.778
*
6.8197%
+
0.222
*
6.28%
*
(1 - 19.99%)
=
6.42%
* 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.
Colt CZ Group SE (CZGZF) has a WACC % of 6.42% as of Jul. 02, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Colt CZ Group SE and its competitors. This is 26% above median its historical median of 5.11. Over the past decade, Colt CZ Group SE's WACC % has ranged from 3.15 to 9.79. According to the industry distribution chart, Colt CZ Group SE ranks #106 out of 359 companies in the Aerospace & Defense industry, placing it in the top 29.5%.
Is Colt CZ Group SE's WACC % too high?
Colt CZ Group SE's current WACC % of 6.42% is 26% above median its 10-year median of 5.11. Over the past 10 years, this metric has ranged from a low of 3.15 to a high of 9.79. The Aerospace & Defense industry median WACC % is 9.82. Colt CZ Group SE's value of 6.42% is 34.6% below this industry median. Based on the distribution chart, Colt CZ Group SE ranks #106 out of 359 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Colt CZ Group SE has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Colt CZ Group SE's WACC % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Colt CZ Group SE ranks #106 out of 359 companies for WACC %. This puts Colt CZ Group SE in the upper half of its industry. The industry median WACC % is 9.82. Colt CZ Group SE's value of 6.42% is 34.6% below this benchmark. Historically, Colt CZ Group SE's own WACC % has ranged from 3.15 to 9.79 over the past decade. While the company's 10-year median is 5.11 vs. the industry median of 9.82, Colt CZ Group SE 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 an Aerospace & Defense company?
The median WACC % among Aerospace & Defense companies is 9.82, based on 359 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. Colt CZ Group SE's current WACC % of 6.42% is 34.6% 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 Colt CZ Group SE and its competitors. For the Aerospace & Defense industry, the median WACC % is 9.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Colt CZ Group SE's current WACC % is 6.42%, which is 26% above median its own 10-year median of 5.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Colt CZ Group SE stock overvalued right now?
Based on GuruFocus' analysis, Colt CZ Group SE (CZGZF) is currently considered Significantly Overvalued. The stock's GF Value™ is $35.24, compared to a current price of $46.96 — trading 33.3% above its estimated fair value. The current WACC % is 6.42%, which is 26% above median its 10-year median of 5.11 and 34.6% below the Aerospace & Defense industry median of 9.82. Colt CZ Group SE's overall GF Score™ is 84/100 with 9 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 Colt CZ Group SE (CZGZF), the current WACC % is 6.42% as of Jul. 02, 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 Colt CZ Group SE (CZGZF) Overvalued in 2026?
Based on GuruFocus' analysis, Colt CZ Group SE stock appears to be overvalued.
The current stock price of $46.96 is trading 33.3% above its estimated GF Value™ of $35.24.
GuruFocus considers Colt CZ Group SE to be Significantly Overvalued.
Key valuation signals for CZGZF:
WACC %: 6.42% (26% above median its 10-year median of 5.11)
GF Value™: $35.24 vs. price of $46.96 (33.3% above fair value)
Industry Position: 34.6% below the Aerospace & Defense median (#106 of 359)
No single metric tells the full story. See the CZGZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Colt CZ Group SE is engaged in the defense and firearms manufacturing industry, focusing on the development, production, and sale of firearms, accessories, and ammunition. The group operates through two reportable segments: Firearms and Accessories, and Ammunition. The Firearms and Accessories segment involves the development, manufacture, assembly, and sale of small firearms, tactical accessories, and optical mounting solutions for military and armed forces, law enforcement, personal defense, hunting, and sport shooting. The Ammunition segment focuses on the development, manufacture, and sale of small caliber ammunition, including pistol, rifle, and shotgun cartridges, as well as other military materials and ammunition-related equipment.
84GF Score
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