What is Eaton Vance Senior Floating Rate Trust WACC %?
Eaton Vance Senior Floating Rate TrustEFR -0.10%32 WACC % is 4.82% as of Jun. 27, 2026, which is 12% below its 10-year median of 5.47. GuruFocus rates EFR with a GF Score™ of 32/100 and a GF Value™ of $5.43 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,653 Asset Management companies, Eaton Vance Senior Floating Rate Trust ranks better than 60.62% on this metric.
As of today (2026-06-27), Eaton Vance Senior Floating Rate Trust's weighted average cost of capital is 4.82%%. Eaton Vance Senior Floating Rate Trust's ROIC % is 0.00% (calculated using TTM income statement data).
Eaton Vance Senior Floating Rate Trust 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.
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, Eaton Vance Senior Floating Rate Trust's weighted average cost of capital is 4.82%%. Eaton Vance Senior Floating Rate Trust's ROIC % is 0.00% (calculated using TTM income statement data).
Eaton Vance Senior Floating Rate Trust 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.
Related Terms
Eaton Vance Senior Floating Rate Trust WACC % Historical Data
* 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, Eaton Vance Senior Floating Rate Trust'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.
Eaton Vance Senior Floating Rate Trust WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Eaton Vance Senior Floating Rate Trust's WACC % distribution charts can be found below:
* The bar in red indicates where Eaton Vance Senior Floating Rate Trust'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, Eaton Vance Senior Floating Rate Trust's market capitalization (E) is $309.998 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 Oct. 2025, Eaton Vance Senior Floating Rate Trust's latest one-year semi-annual average Book Value of Debt (D) is $125.6667 Mil.
a) weight of equity = E / (E + D) = 309.998 / (309.998 + 125.6667) = 0.7116
b) weight of debt = D / (E + D) = 125.6667 / (309.998 + 125.6667) = 0.2884
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. Eaton Vance Senior Floating Rate Trust's beta is 0.0209.
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% + 0.0209 * 6% = 4.5014%
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 Oct. 2025, Eaton Vance Senior Floating Rate Trust's interest expense (positive number) was $7.051 Mil. Its total Book Value of Debt (D) is $125.6667 Mil.
Cost of Debt = 7.051 / 125.6667 = 5.6109%.
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 / 22.584 = 0%.
* 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.
Eaton Vance Senior Floating Rate Trust (EFR) has a WACC % of 4.82% 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 Eaton Vance Senior Floating Rate Trust and its competitors. This is 12% below median its historical median of 5.47. Over the past decade, Eaton Vance Senior Floating Rate Trust's WACC % has ranged from 0.28 to 6.92. According to the industry distribution chart, Eaton Vance Senior Floating Rate Trust ranks #651 out of 1653 companies in the Asset Management industry, placing it in the top 39.4%.
Is Eaton Vance Senior Floating Rate Trust's WACC % too high?
Eaton Vance Senior Floating Rate Trust's current WACC % of 4.82% is 12% below median its 10-year median of 5.47. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 6.92. The Asset Management industry median WACC % is 5.68. Eaton Vance Senior Floating Rate Trust's value of 4.82% is 15.1% below this industry median. Based on the distribution chart, Eaton Vance Senior Floating Rate Trust ranks #651 out of 1653 companies in the Asset Management industry, which is above the industry midpoint. Overall, Eaton Vance Senior Floating Rate Trust has a GF Score™ of 32/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Eaton Vance Senior Floating Rate Trust's WACC % compare to KF and NBH?
According to the Asset Management industry distribution chart, Eaton Vance Senior Floating Rate Trust ranks #651 out of 1653 companies for WACC %. This puts Eaton Vance Senior Floating Rate Trust in the upper half of its industry. The industry median WACC % is 5.68. Eaton Vance Senior Floating Rate Trust's value of 4.82% is 15.1% below this benchmark. Historically, Eaton Vance Senior Floating Rate Trust's own WACC % has ranged from 0.28 to 6.92 over the past decade. While the company's 10-year median is 5.47 vs. the industry median of 5.68, Eaton Vance Senior Floating Rate Trust 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 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. Eaton Vance Senior Floating Rate Trust's current WACC % of 4.82% is 15.1% 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 Eaton Vance Senior Floating Rate Trust 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. Eaton Vance Senior Floating Rate Trust's current WACC % is 4.82%, which is 12% below median its own 10-year median of 5.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eaton Vance Senior Floating Rate Trust stock overvalued right now?
Based on GuruFocus' analysis, Eaton Vance Senior Floating Rate Trust (EFR) is currently considered Significantly Overvalued. The stock's GF Value™ is $5.43, compared to a current price of $10.50 — trading 93.4% above its estimated fair value. The current WACC % is 4.82%, which is 12% below median its 10-year median of 5.47 and 15.1% below the Asset Management industry median of 5.68. Eaton Vance Senior Floating Rate Trust's overall GF Score™ is 32/100 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 Eaton Vance Senior Floating Rate Trust (EFR), the current WACC % is 4.82% 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 Eaton Vance Senior Floating Rate Trust (EFR) Overvalued in 2026?
Based on GuruFocus' analysis, Eaton Vance Senior Floating Rate Trust stock appears to be overvalued.
The current stock price of $10.50 is trading 93.4% above its estimated GF Value™ of $5.43.
GuruFocus considers Eaton Vance Senior Floating Rate Trust to be Significantly Overvalued.
Key valuation signals for EFR:
WACC %: 4.82% (12% below median its 10-year median of 5.47)
GF Value™: $5.43 vs. price of $10.50 (93.4% above fair value)
Industry Position: 15.1% below the Asset Management median (#651 of 1653)
No single metric tells the full story. See the EFR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eaton Vance Senior Floating Rate Trust Business Description
Eaton Vance Senior Floating Rate Trust is a diversified, closed-end management investment company. Its primary investment objective is to provide a high level of current income. As a secondary objective, the fund intends to seek capital preservation. Its portfolio of investments consists of Software, Health Care Providers & Services, Machinery, Chemicals, Professional Services, IT Services, Hotels, Restaurants & Leisure, Capital Markets, Specialty Retail, Commercial Services & Supplies, and other areas. The trust invests in below investment grade floating rate loans, which are considered speculative because of the credit risk of their issuers.
32GF Score
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