Caledonian HoldingsFRA:IBN0 WACC % is -0.48% as of Jun. 26, 2026. The stock has 3 warning signs investors should review. Among 1,653 Asset Management companies, Caledonian Holdings ranks worse than 85.96% on this metric.
As of today (2026-06-26), Caledonian Holdings's weighted average cost of capital is -0.48%%. Caledonian Holdings's ROIC % is -80.75% (calculated using TTM income statement data).
Caledonian 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.
Caledonian Holdings (FRA:IBN0) 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, Caledonian Holdings's weighted average cost of capital is -0.48%%. Caledonian Holdings's ROIC % is -80.75% (calculated using TTM income statement data).
Caledonian 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 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
Caledonian Holdings WACC % Historical Data
* Premium members only.
The historical data trend for Caledonian Holdings'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 Asset Management subindustry, Caledonian 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.
Caledonian Holdings WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Caledonian Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Caledonian 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, Caledonian Holdings's market capitalization (E) is €2.488 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 Sep. 2025, Caledonian Holdings's latest one-year semi-annual average Book Value of Debt (D) is €0 Mil.
a) weight of equity = E / (E + D) = 2.488 / (2.488 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (2.488 + 0) = 0
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 4.9416%. 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. Caledonian Holdings's beta is -0.9044.
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 = 4.9416% + -0.9044 * 6% = -0.4848%
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 Sep. 2025, Caledonian Holdings's interest expense (positive number) was €-0 Mil. Its total Book Value of Debt (D) is €0 Mil.
Cost of Debt = -0 / 0 = %.
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 / -2.639 = 0%.
Caledonian 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)
=
1
*
-0.4848%
+
0
*
%
*
(1 - 0%)
=
-0.48%
* 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.
Caledonian Holdings (FRA:IBN0) has a WACC % of -0.48% 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 Caledonian Holdings and its competitors. Over the past decade, Caledonian Holdings' WACC % has ranged from 5.53 to 21.97. According to the industry distribution chart, Caledonian Holdings ranks #1421 out of 1653 companies in the Asset Management industry, placing it in the top 86%.
Is Caledonian Holdings' WACC % too high?
Caledonian Holdings' current WACC % is -0.48%. Over the past 10 years, this metric has ranged from a low of 5.53 to a high of 21.97. Based on the distribution chart, Caledonian Holdings ranks #1421 out of 1653 companies in the Asset Management industry, which is in the bottom quartile relative to peers.
How does Caledonian Holdings' WACC % compare to BLK and BX?
According to the Asset Management industry distribution chart, Caledonian Holdings ranks #1421 out of 1653 companies for WACC %. This places Caledonian Holdings in the lower half of its industry. The industry median WACC % is 5.68. Historically, Caledonian Holdings' own WACC % has ranged from 5.53 to 21.97 over the past decade. 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. 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 Caledonian Holdings 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. Caledonian Holdings's current WACC % is -0.48%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Caledonian Holdings stock overvalued right now?
Caledonian Holdings (FRA:IBN0) has a current WACC % of -0.48%. The current WACC % is -0.48%. 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 Caledonian Holdings (FRA:IBN0), the current WACC % is -0.48% 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.
Caledonian Holdings PLC is an investment company based in the United Kingdom. It is focused on investing in companies operating within the financial services and associated markets. The company targets businesses that demonstrate growth potential, financial solutions, and scalable business models. Its primary areas of interest include fintech, asset management, insurance, and banking, with an emphasis on companies that leverage technology to enhance efficiency, accessibility, and financial inclusion. The company focuses on having a mix of private and publicly traded investments. It has only one identifiable operating segment, being the purchase, holding, and sale of investments. Geographically, the company operates only in the United Kingdom.
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