Defeng Solife HoldingsDOWAY 34 WACC % is 9.96% as of Jun. 26, 2026, which is 93% above its 10-year median of 5.17. GuruFocus rates DOWAY with a GF Score™ of 34/100 and a GF Value™ of $1.35 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,050 Media - Diversified companies, Defeng Solife Holdings ranks worse than 58.67% on this metric.
As of today (2026-06-26), Defeng Solife Holdings's weighted average cost of capital is 9.96%%. Defeng Solife Holdings's ROIC % is -46.56% (calculated using TTM income statement data).
Defeng Solife Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*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.
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, Defeng Solife Holdings's weighted average cost of capital is 9.96%%. Defeng Solife Holdings's ROIC % is -46.56% (calculated using TTM income statement data).
Defeng Solife Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*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 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 Advertising Agencies subindustry, Defeng Solife Holdings'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.
Defeng Solife Holdings WACC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Defeng Solife Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Defeng Solife Holdings'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, Defeng Solife Holdings's market capitalization (E) is $57.365 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, Defeng Solife Holdings's latest one-year semi-annual average Book Value of Debt (D) is $4.472 Mil.
a) weight of equity = E / (E + D) = 57.365 / (57.365 + 4.472) = 0.9277
b) weight of debt = D / (E + D) = 4.472 / (57.365 + 4.472) = 0.0723
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. Defeng Solife Holdings'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 semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, Defeng Solife Holdings's interest expense (positive number) was $0.21 Mil. Its total Book Value of Debt (D) is $4.472 Mil.
Cost of Debt = 0.21 / 4.472 = 4.6959%.
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 = -0.016 / -2.444 = 0.65%.
Defeng Solife Holdings'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)
=
0.9277
*
10.376%
+
0.0723
*
4.6959%
*
(1 - 0.65%)
=
9.96%
* 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.
Defeng Solife Holdings (DOWAY) has a WACC % of 9.96% as of Jun. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Defeng Solife Holdings and its competitors. This is 93% above median its historical median of 5.17. According to the industry distribution chart, Defeng Solife Holdings ranks #616 out of 1050 companies in the Media - Diversified industry, placing it in the top 58.7%.
Is Defeng Solife Holdings' WACC % too high?
Defeng Solife Holdings' current WACC % of 9.96% is 93% above median its 10-year median of 5.17. The Media - Diversified industry median WACC % is 7.44. Defeng Solife Holdings' value of 9.96% is 34% above this industry median. Based on the distribution chart, Defeng Solife Holdings ranks #616 out of 1050 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Defeng Solife Holdings has a GF Score™ of 34/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Defeng Solife Holdings' WACC % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Defeng Solife Holdings ranks #616 out of 1050 companies for WACC %. This places Defeng Solife Holdings in the lower half of its industry. The industry median WACC % is 7.44. Defeng Solife Holdings' value of 9.96% is 34% above this benchmark. While the company's 10-year median is 5.17 vs. the industry median of 7.44, Defeng Solife Holdings 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 a Media - Diversified company?
The median WACC % among Media - Diversified companies is 7.44, based on 1,050 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. Defeng Solife Holdings's current WACC % of 9.96% is 34% 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 Defeng Solife Holdings and its competitors. For the Media - Diversified industry, the median WACC % is 7.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Defeng Solife Holdings's current WACC % is 9.96%, which is 93% above median its own 10-year median of 5.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Defeng Solife Holdings stock overvalued right now?
Based on GuruFocus' analysis, Defeng Solife Holdings (DOWAY) is currently considered Possible Value Trap. The stock's GF Value™ is $1.35, compared to a current price of $0.75 — trading 44.8% below its estimated fair value. The current WACC % is 9.96%, which is 93% above median its 10-year median of 5.17 and 34% above the Media - Diversified industry median of 7.44. Defeng Solife Holdings' overall GF Score™ is 34/100 with 8 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 Defeng Solife Holdings (DOWAY), the current WACC % is 9.96% as of Jun. 26, 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 Defeng Solife Holdings (DOWAY) Overvalued in 2026?
Based on GuruFocus' analysis, Defeng Solife Holdings stock appears to be undervalued.
The current stock price of $0.75 is trading 44.8% below its estimated GF Value™ of $1.35.
GuruFocus considers Defeng Solife Holdings to be Possible Value Trap.
Key valuation signals for DOWAY:
WACC %: 9.96% (93% above median its 10-year median of 5.17)
GF Value™: $1.35 vs. price of $0.75 (44.8% below fair value)
Industry Position: 34% above the Media - Diversified median (#616 of 1050)
No single metric tells the full story. See the DOWAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Defeng Solife Holdings Ltd is an integrated exhibition and event management services provider. The company engages in the design, planning, coordination, and management of exhibitions and events in the PRC. These services include design, planning, coordination, and management of exhibitions and events, covering theme, stage, and venue design and overall planning, feasibility studies, and procurement of construction materials and equipment. It has three operating segments that include the Exhibition and event-related business, E-commerce business, and the Advertising-related business. The majority of the revenue is generated from the Exhibition and event-related business segments.
34GF Score
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