As of today (2026-06-26), Industrial And Commercial Bank Of China's weighted average cost of capital is 11.7%%. Industrial And Commercial Bank Of China's ROIC % is 0.00% (calculated using TTM income statement data).
Industrial And Commercial Bank Of China 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.
Industrial And Commercial Bank Of China (FRA:ICK) 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, Industrial And Commercial Bank Of China's weighted average cost of capital is 11.7%%. Industrial And Commercial Bank Of China's ROIC % is 0.00% (calculated using TTM income statement data).
Industrial And Commercial Bank Of China 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.
Related Terms
Industrial And Commercial Bank Of China 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.
Industrial And Commercial Bank Of China WACC % Chart
Industrial And Commercial Bank Of China Annual Data
For the Banks - Diversified subindustry, Industrial And Commercial Bank Of China'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.
Industrial And Commercial Bank Of China WACC % vs Banks Industry
Industrial And Commercial Bank Of China WACC % Calculation
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, Industrial And Commercial Bank Of China's market capitalization (E) is €316072.888 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, Industrial And Commercial Bank Of China's latest one-year quarterly average Book Value of Debt (D) is €352810.5226 Mil.
a) weight of equity = E / (E + D) = 316072.888 / (316072.888 + 352810.5226) = 0.4725
b) weight of debt = D / (E + D) = 352810.5226 / (316072.888 + 352810.5226) = 0.5275
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 4.372%. 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. Industrial And Commercial Bank Of China's beta is -0.4173.
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 = 4.372% + -0.4173 * 6% = 1.8682%
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, Industrial And Commercial Bank Of China's interest expense (positive number) was €82559.042 Mil. Its total Book Value of Debt (D) is €352810.5226 Mil.
Cost of Debt = 82559.042 / 352810.5226 = 23.4004%.
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 = 6415.181 / 51933.83 = 12.35%.
* 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.
Industrial And Commercial Bank Of China (FRA:ICK) has a WACC % of 11.7% 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 Industrial And Commercial Bank Of China and its competitors. This is 20% below median its historical median of 14.56. Over the past decade, Industrial And Commercial Bank Of China's WACC % has ranged from 12.23 to 21.63. According to the industry distribution chart, Industrial And Commercial Bank Of China ranks #729 out of 1543 companies in the Banks industry, placing it in the top 47.2%.
Is Industrial And Commercial Bank Of China's WACC % too high?
Industrial And Commercial Bank Of China's current WACC % of 11.7% is 20% below median its 10-year median of 14.56. Over the past 10 years, this metric has ranged from a low of 12.23 to a high of 21.63. The Banks industry median WACC % is 13.20. Industrial And Commercial Bank Of China's value of 11.7% is 11.4% below this industry median. Based on the distribution chart, Industrial And Commercial Bank Of China ranks #729 out of 1543 companies in the Banks industry, which is above the industry midpoint. Overall, Industrial And Commercial Bank Of China has a GF Score™ of 40/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Industrial And Commercial Bank Of China's WACC % compare to JPM and BAC?
According to the Banks industry distribution chart, Industrial And Commercial Bank Of China ranks #729 out of 1543 companies for WACC %. This puts Industrial And Commercial Bank Of China in the upper half of its industry. The industry median WACC % is 13.20. Industrial And Commercial Bank Of China's value of 11.7% is 11.4% below this benchmark. Historically, Industrial And Commercial Bank Of China's own WACC % has ranged from 12.23 to 21.63 over the past decade. While the company's 10-year median is 14.56 vs. the industry median of 13.20, Industrial And Commercial Bank Of China 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 a Banks company?
The median WACC % among Banks companies is 13.20, based on 1,543 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. Industrial And Commercial Bank Of China's current WACC % of 11.7% is 11.4% 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 Industrial And Commercial Bank Of China and its competitors. For the Banks industry, the median WACC % is 13.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Industrial And Commercial Bank Of China's current WACC % is 11.7%, which is 20% below median its own 10-year median of 14.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Industrial And Commercial Bank Of China stock overvalued right now?
Based on GuruFocus' analysis, Industrial And Commercial Bank Of China (FRA:ICK) is currently considered Fairly Valued. The stock's GF Value™ is €0.69, compared to a current price of €0.73 — trading 6.4% above its estimated fair value. The current WACC % is 11.7%, which is 20% below median its 10-year median of 14.56 and 11.4% below the Banks industry median of 13.20. Industrial And Commercial Bank Of China's overall GF Score™ is 40/100 with 3 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 Industrial And Commercial Bank Of China (FRA:ICK), the current WACC % is 11.7% 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.
Is Industrial And Commercial Bank Of China (FRA:ICK) Overvalued in 2026?
Based on GuruFocus' analysis, Industrial And Commercial Bank Of China stock appears to be overvalued.
The current stock price of €0.73 is trading 6.4% above its estimated GF Value™ of €0.69.
GuruFocus considers Industrial And Commercial Bank Of China to be Fairly Valued.
Key valuation signals for FRA:ICK:
WACC %: 11.7% (20% below median its 10-year median of 14.56)
GF Value™: €0.69 vs. price of €0.73 (6.4% above fair value)
Industry Position: 11.4% below the Banks median (#729 of 1543)
No single metric tells the full story. See the FRA:ICK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Industrial And Commercial Bank Of China Business Description
Industrial and Commercial Bank of China was founded in 1984 and is headquartered in Beijing. The bank listed its shares in mainland China and Hong Kong in 2006. It is China's largest by asset scale and by share of lending and deposits. Central Huijin Investment (China's sovereign wealth fund manager) and China's Ministry of Finance are ICBC's two largest shareholders, each with a stake of around 35%. ICBC operates over 15,000 outlets. Of these, 413 outlets are in 49 countries and regions overseas. Corporate banking, retail banking, and wholesale banking accounted for 49%, 39%, and 11% of total revenue, respectively, and 49%, 33%, and 17% of profit before tax in 2025. Overseas banking and other business contributed 14% of total revenue and 9% of profit before tax in 2025.
40GF Score
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