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Franklin Credit ManagementFCRM WACC % is -0.01% as of Jul. 22, 2026. The stock has 2 warning signs investors should review. Among 1,537 Banks companies, Franklin Credit Management ranks better than 99.8% on this metric.
As of today (2026-07-22), Franklin Credit Management's weighted average cost of capital is -0.01%%. Franklin Credit Management's ROIC % is 0.00% (calculated using TTM income statement data).
Franklin Credit Management 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Franklin Credit Management (OTCPK:FCRM) 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, Franklin Credit Management's weighted average cost of capital is -0.01%%. Franklin Credit Management's ROIC % is 0.00% (calculated using TTM income statement data).
Franklin Credit Management 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.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year 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 annual Interest Expense divided by the latest one-year 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 Mortgage Finance subindustry, Franklin Credit Management'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.
Franklin Credit Management WACC % vs Banks Industry
For the Banks industry and Financial Services sector, Franklin Credit Management's WACC % distribution charts can be found below:
* The bar in red indicates where Franklin Credit Management'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, Franklin Credit Management's market capitalization (E) is $0.331 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 annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Franklin Credit Management's latest one-year annual average Book Value of Debt (D) is $3.5385 Mil.
a) weight of equity = E / (E + D) = 0.331 / (0.331 + 3.5385) = 0.0855
b) weight of debt = D / (E + D) = 3.5385 / (0.331 + 3.5385) = 0.9145
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 4.659%. 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. Franklin Credit Management's beta is -0.8047.
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 = 4.659% + -0.8047 * 6% = -0.1692%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Dec. 2025, Franklin Credit Management's interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $3.5385 Mil.
Cost of Debt = -0 / 3.5385 = 0%.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual 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 annual Tax Rate = 0.081 / -2.763 = -2.93%, which is less than 0%. Therefore it's set to 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.
Franklin Credit Management (FCRM) has a WACC % of -0.01% as of Jul. 22, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Franklin Credit Management and its competitors. According to the industry distribution chart, Franklin Credit Management ranks #3 out of 1537 companies in the Banks industry, placing it in the top 0.2%.
Is Franklin Credit Management's WACC % too high?
Franklin Credit Management's current WACC % is -0.01%. Based on the distribution chart, Franklin Credit Management ranks #3 out of 1537 companies in the Banks industry, which is in the top quartile — a strong position relative to peers.
How does Franklin Credit Management's WACC % compare to LFLS and RKT?
According to the Banks industry distribution chart, Franklin Credit Management ranks #3 out of 1537 companies for WACC %. This places Franklin Credit Management in the top 0% of its industry — outperforming the majority of peers. The industry median WACC % is 13.18. 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 Banks company?
The median WACC % among Banks companies is 13.18, based on 1,537 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. 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 Franklin Credit Management and its competitors. For the Banks industry, the median WACC % is 13.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Franklin Credit Management's current WACC % is -0.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Franklin Credit Management stock overvalued right now?
Based on GuruFocus' analysis, Franklin Credit Management (FCRM) is currently considered Possible Value Trap. The stock's GF Value™ is $0.08, compared to a current price of $0.03 — trading 58.8% below its estimated fair value. The current WACC % is -0.01%. 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 Franklin Credit Management (FCRM), the current WACC % is -0.01% as of Jul. 22, 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.
Franklin Credit Management Corp is a specialty consumer finance company mainly in the servicing and resolution of performing, reperforming, nonperforming residential mortgage loans, including specialized loan recovery and collection servicing, and in the analysis, pricing and acquisition of residential mortgage portfolios for third parties. Its servicing operations including specialized loan recovery and collecting services, consist of a call letter staffed by professionals skilled in customer service, Collection, loan mitigation, foreclosure, bankruptcy, real estate property management, deficiency recovery and judgement processing.
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