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The RMR GroupFRA:26R -1.78%82 WACC % is 9.08% as of Jul. 27, 2026, which is 2% above its 10-year median of 8.87. GuruFocus rates FRA:26R with a GF Score™ of 82/100 and a GF Value™ of €14.18 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,843 Real Estate companies, The RMR Group ranks worse than 64.03% on this metric.
As of today (2026-07-27), The RMR Group's weighted average cost of capital is 9.08%%. The RMR Group's ROIC % is 11.35% (calculated using TTM income statement data).
The RMR Group 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.
The RMR Group (FRA:26R) 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, The RMR Group's weighted average cost of capital is 9.08%%. The RMR Group's ROIC % is 11.35% (calculated using TTM income statement data).
The RMR Group 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 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
The RMR Group WACC % Historical Data
* Premium members only.
The historical data trend for The RMR Group'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 Real Estate Services subindustry, The RMR Group'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.
The RMR Group WACC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, The RMR Group's WACC % distribution charts can be found below:
* The bar in red indicates where The RMR Group'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, The RMR Group's market capitalization (E) is €300.809 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, The RMR Group's latest one-year quarterly average Book Value of Debt (D) is €129.9622 Mil.
a) weight of equity = E / (E + D) = 300.809 / (300.809 + 129.9622) = 0.6983
b) weight of debt = D / (E + D) = 129.9622 / (300.809 + 129.9622) = 0.3017
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 4.633%. 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. The RMR Group's beta is 1.0776.
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 = 4.633% + 1.0776 * 6% = 11.0986%
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, The RMR Group's interest expense (positive number) was €6.869 Mil. Its total Book Value of Debt (D) is €129.9622 Mil.
Cost of Debt = 6.869 / 129.9622 = 5.2854%.
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 = 7.768 / 46.988 = 16.53%.
The RMR Group'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)
=
0.6983
*
11.0986%
+
0.3017
*
5.2854%
*
(1 - 16.53%)
=
9.08%
* 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.
The RMR Group (FRA:26R) has a WACC % of 9.08% as of Jul. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on The RMR Group and its competitors. This is near median its historical median of 8.87. Over the past decade, The RMR Group's WACC % has ranged from 7.36 to 12.94. According to the industry distribution chart, The RMR Group ranks #1180 out of 1843 companies in the Real Estate industry, placing it in the top 64%.
Is The RMR Group's WACC % too high?
The RMR Group's current WACC % of 9.08% is near median its 10-year median of 8.87. Over the past 10 years, this metric has ranged from a low of 7.36 to a high of 12.94. The Real Estate industry median WACC % is 6.49. The RMR Group's value of 9.08% is 39.9% above this industry median. Based on the distribution chart, The RMR Group ranks #1180 out of 1843 companies in the Real Estate industry, which is below the industry midpoint. Overall, The RMR Group has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The RMR Group's WACC % compare to MLP and SEG?
According to the Real Estate industry distribution chart, The RMR Group ranks #1180 out of 1843 companies for WACC %. This places The RMR Group in the lower half of its industry. The industry median WACC % is 6.49. The RMR Group's value of 9.08% is 39.9% above this benchmark. Historically, The RMR Group's own WACC % has ranged from 7.36 to 12.94 over the past decade. While the company's 10-year median is 8.87 vs. the industry median of 6.49, The RMR Group 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 Real Estate company?
The median WACC % among Real Estate companies is 6.49, based on 1,843 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. The RMR Group's current WACC % of 9.08% is 39.9% 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 The RMR Group and its competitors. For the Real Estate industry, the median WACC % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The RMR Group's current WACC % is 9.08%, which is near median its own 10-year median of 8.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The RMR Group stock overvalued right now?
Based on GuruFocus' analysis, The RMR Group (FRA:26R) is currently considered Modestly Overvalued. The stock's GF Value™ is €14.18, compared to a current price of €16.60 — trading 17.1% above its estimated fair value. The current WACC % is 9.08%, which is near median its 10-year median of 8.87 and 39.9% above the Real Estate industry median of 6.49. The RMR Group's overall GF Score™ is 82/100 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 The RMR Group (FRA:26R), the current WACC % is 9.08% as of Jul. 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 The RMR Group (FRA:26R) Overvalued in 2026?
Based on GuruFocus' analysis, The RMR Group stock appears to be overvalued.
The current stock price of €16.60 is trading 17.1% above its estimated GF Value™ of €14.18.
GuruFocus considers The RMR Group to be Modestly Overvalued.
Key valuation signals for FRA:26R:
WACC %: 9.08% (near median its 10-year median of 8.87)
GF Value™: €14.18 vs. price of €16.60 (17.1% above fair value)
Industry Position: 39.9% above the Real Estate median (#1180 of 1843)
No single metric tells the full story. See the FRA:26R stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The RMR Group Inc is a holding company that conducts its business through its subsidiary, which is an alternative asset management company with a primary focus on commercial real estate and related businesses in the United States. Its business consists of providing management services to publicly owned real estate investment trusts, or REITs, and real estate-related operating companies. The company manages a diverse portfolio of real estate assets across sectors such as office, industrial, healthcare, retail, and hospitality, etc. It also provides management services to real estate securities mutual funds and commercial real estate finance companies. The company derives the majority of its revenues from its provision of management services.
82GF Score
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