Virgin Galactic HoldingsFRA:0QL0 +2.61%70 WACC % is 13.73% as of Jun. 28, 2026, which is 58% above its 10-year median of 8.68. GuruFocus rates FRA:0QL0 with a GF Score™ of 70/100 and a GF Value™ of €3.36 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 358 Aerospace & Defense companies, Virgin Galactic Holdings ranks worse than 81.84% on this metric.
As of today (2026-06-28), Virgin Galactic Holdings's weighted average cost of capital is 13.73%%. Virgin Galactic Holdings's ROIC % is -48.81% (calculated using TTM income statement data).
Virgin Galactic Holdings 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, Virgin Galactic Holdings's weighted average cost of capital is 13.73%%. Virgin Galactic Holdings's ROIC % is -48.81% (calculated using TTM income statement data).
Virgin Galactic Holdings 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.
* 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, Virgin Galactic 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.
Virgin Galactic Holdings WACC % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Virgin Galactic Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Virgin Galactic 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, Virgin Galactic Holdings's market capitalization (E) is €288.703 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, Virgin Galactic Holdings's latest one-year quarterly average Book Value of Debt (D) is €333.4424 Mil.
a) weight of equity = E / (E + D) = 288.703 / (288.703 + 333.4424) = 0.464
b) weight of debt = D / (E + D) = 333.4424 / (288.703 + 333.4424) = 0.536
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. Virgin Galactic Holdings's beta is 3.6379.
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% + 3.6379 * 6% = 26.2034%
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, Virgin Galactic Holdings's interest expense (positive number) was €9.765 Mil. Its total Book Value of Debt (D) is €333.4424 Mil.
Cost of Debt = 9.765 / 333.4424 = 2.9285%.
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 = 0.029 / -222.73 = -0.01%, 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.
Virgin Galactic Holdings (FRA:0QL0) has a WACC % of 13.73% as of Jun. 28, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Virgin Galactic Holdings and its competitors. This is 58% above median its historical median of 8.68. Over the past decade, Virgin Galactic Holdings' WACC % has ranged from 2.68 to 13.08. According to the industry distribution chart, Virgin Galactic Holdings ranks #293 out of 358 companies in the Aerospace & Defense industry, placing it in the top 81.8%.
Is Virgin Galactic Holdings' WACC % too high?
Virgin Galactic Holdings' current WACC % of 13.73% is 58% above median its 10-year median of 8.68. Over the past 10 years, this metric has ranged from a low of 2.68 to a high of 13.08. The Aerospace & Defense industry median WACC % is 9.79. Virgin Galactic Holdings' value of 13.73% is 40.2% above this industry median. Based on the distribution chart, Virgin Galactic Holdings ranks #293 out of 358 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Virgin Galactic Holdings has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Virgin Galactic Holdings' WACC % compare to PKE and RGR?
According to the Aerospace & Defense industry distribution chart, Virgin Galactic Holdings ranks #293 out of 358 companies for WACC %. This places Virgin Galactic Holdings in the lower half of its industry. The industry median WACC % is 9.79. Virgin Galactic Holdings' value of 13.73% is 40.2% above this benchmark. Historically, Virgin Galactic Holdings' own WACC % has ranged from 2.68 to 13.08 over the past decade. While the company's 10-year median is 8.68 vs. the industry median of 9.79, Virgin Galactic 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 an Aerospace & Defense company?
The median WACC % among Aerospace & Defense companies is 9.79, based on 358 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. Virgin Galactic Holdings's current WACC % of 13.73% is 40.2% 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 Virgin Galactic Holdings and its competitors. For the Aerospace & Defense industry, the median WACC % is 9.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virgin Galactic Holdings's current WACC % is 13.73%, which is 58% above median its own 10-year median of 8.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virgin Galactic Holdings stock overvalued right now?
Based on GuruFocus' analysis, Virgin Galactic Holdings (FRA:0QL0) is currently considered Possible Value Trap. The stock's GF Value™ is €3.36, compared to a current price of €2.44 — trading 27.4% below its estimated fair value. The current WACC % is 13.73%, which is 58% above median its 10-year median of 8.68 and 40.2% above the Aerospace & Defense industry median of 9.79. Virgin Galactic Holdings' overall GF Score™ is 70/100 with 5 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 Virgin Galactic Holdings (FRA:0QL0), the current WACC % is 13.73% as of Jun. 28, 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 Virgin Galactic Holdings (FRA:0QL0) Overvalued in 2026?
Based on GuruFocus' analysis, Virgin Galactic Holdings stock appears to be undervalued.
The current stock price of €2.44 is trading 27.4% below its estimated GF Value™ of €3.36.
GuruFocus considers Virgin Galactic Holdings to be Possible Value Trap.
Key valuation signals for FRA:0QL0:
WACC %: 13.73% (58% above median its 10-year median of 8.68)
GF Value™: €3.36 vs. price of €2.44 (27.4% below fair value)
Industry Position: 40.2% above the Aerospace & Defense median (#293 of 358)
No single metric tells the full story. See the FRA:0QL0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Virgin Galactic Holdings Inc is a United States-based vertically integrated aerospace company pioneering human spaceflight for private individuals & researchers, and it also manufactures air and space vehicles. Using technologies, the company is developing a spaceflight system designed to offer its customers a multi-day and transformative experience. This culminates in a spaceflight that includes views of Earth from space and several minutes of weightlessness that will launch from Spaceport America, New Mexico.
70GF Score
Get the complete analysis for FRA:0QL0
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
FRA:0QL0 has been successfully added to your 
