Lam Soon (Hong Kong)FRA:LS9 +1.71%69 WACC % is 10.42% as of Jun. 30, 2026, which is 104% above its 10-year median of 5.12. GuruFocus rates FRA:LS9 with a GF Score™ of 69/100 and a GF Value™ of €0.88. The stock has 2 warning signs investors should review. Among 2,034 Consumer Packaged Goods companies, Lam Soon (Hong Kong) ranks better than 55.01% on this metric.
As of today (2026-06-30), Lam Soon (Hong Kong)'s weighted average cost of capital is 10.42%%. Lam Soon (Hong Kong)'s ROIC % is 18.67% (calculated using TTM income statement data).
Lam Soon (Hong Kong) 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Lam Soon (Hong Kong) (FRA:LS9) 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, Lam Soon (Hong Kong)'s weighted average cost of capital is 10.42%%. Lam Soon (Hong Kong)'s ROIC % is 18.67% (calculated using TTM income statement data).
Lam Soon (Hong Kong) 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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.
* 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 Packaged Foods subindustry, Lam Soon (Hong Kong)'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.
Lam Soon (Hong Kong) WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Lam Soon (Hong Kong)'s WACC % distribution charts can be found below:
* The bar in red indicates where Lam Soon (Hong Kong)'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, Lam Soon (Hong Kong)'s market capitalization (E) is €285.092 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 Dec. 2025, Lam Soon (Hong Kong)'s latest one-year semi-annual average Book Value of Debt (D) is €1.6523 Mil.
a) weight of equity = E / (E + D) = 285.092 / (285.092 + 1.6523) = 0.9942
b) weight of debt = D / (E + D) = 1.6523 / (285.092 + 1.6523) = 0.0058
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 4.463%. 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. Lam Soon (Hong Kong)'s beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 = 4.463% + 1 * 6% = 10.463%
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 Dec. 2025, Lam Soon (Hong Kong)'s interest expense (positive number) was €0.061 Mil. Its total Book Value of Debt (D) is €1.6523 Mil.
Cost of Debt = 0.061 / 1.6523 = 3.6918%.
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 = 5.136 / 37.131 = 13.83%.
Lam Soon (Hong Kong)'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)
=
0.9942
*
10.463%
+
0.0058
*
3.6918%
*
(1 - 13.83%)
=
10.42%
* 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.
Lam Soon (Hong Kong) (FRA:LS9) has a WACC % of 10.42% as of Jun. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Lam Soon (Hong Kong) and its competitors. This is 104% above median its historical median of 5.12. Over the past decade, Lam Soon (Hong Kong)'s WACC % has ranged from 2.86 to 7.00. According to the industry distribution chart, Lam Soon (Hong Kong) ranks #915 out of 2034 companies in the Consumer Packaged Goods industry, placing it in the top 45%.
Is Lam Soon (Hong Kong)'s WACC % too high?
Lam Soon (Hong Kong)'s current WACC % of 10.42% is 104% above median its 10-year median of 5.12. Over the past 10 years, this metric has ranged from a low of 2.86 to a high of 7.00. The Consumer Packaged Goods industry median WACC % is 7.69. Lam Soon (Hong Kong)'s value of 10.42% is 35.5% above this industry median. Based on the distribution chart, Lam Soon (Hong Kong) ranks #915 out of 2034 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Lam Soon (Hong Kong) has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Lam Soon (Hong Kong)'s WACC % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Lam Soon (Hong Kong) ranks #915 out of 2034 companies for WACC %. This puts Lam Soon (Hong Kong) in the upper half of its industry. The industry median WACC % is 7.69. Lam Soon (Hong Kong)'s value of 10.42% is 35.5% above this benchmark. Historically, Lam Soon (Hong Kong)'s own WACC % has ranged from 2.86 to 7.00 over the past decade. While the company's 10-year median is 5.12 vs. the industry median of 7.69, Lam Soon (Hong Kong) 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 Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.69, based on 2,034 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. Lam Soon (Hong Kong)'s current WACC % of 10.42% is 35.5% 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 Lam Soon (Hong Kong) and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lam Soon (Hong Kong)'s current WACC % is 10.42%, which is 104% above median its own 10-year median of 5.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lam Soon (Hong Kong) stock overvalued right now?
Lam Soon (Hong Kong) (FRA:LS9) has a current WACC % of 10.42%. The stock's GF Value™ is €0.88, compared to a current price of €1.19 — trading 35.2% above its estimated fair value. The current WACC % is 10.42%, which is 104% above median its 10-year median of 5.12 and 35.5% above the Consumer Packaged Goods industry median of 7.69. Lam Soon (Hong Kong)'s overall GF Score™ is 69/100 with 2 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 Lam Soon (Hong Kong) (FRA:LS9), the current WACC % is 10.42% as of Jun. 30, 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 Lam Soon (Hong Kong) (FRA:LS9) Overvalued in 2026?
Based on GuruFocus' analysis, Lam Soon (Hong Kong) stock appears to be overvalued.
The current stock price of €1.19 is trading 35.2% above its estimated GF Value™ of €0.88.
Key valuation signals for FRA:LS9:
WACC %: 10.42% (104% above median its 10-year median of 5.12)
GF Value™: €0.88 vs. price of €1.19 (35.2% above fair value)
Industry Position: 35.5% above the Consumer Packaged Goods median (#915 of 2034)
No single metric tells the full story. See the FRA:LS9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lam Soon (Hong Kong) Ltd is an investment holding company engaged in the manufacturing of food and detergent products. The company's business segments are based on its activities and include Food and Home Care. The Food segment involves the manufacturing and distribution of food products such as flour, edible oils, and vegetable fats. The Home Care segment covers the manufacturing and distribution of household cleaning products, including liquid dishwashing detergent, laundry powder, liquid laundry detergent, fabric softener, floor cleaner, and industrial marble cleanser. The majority of its revenue is generated from the Food segment activities. It operates in Hong Kong and international markets, with the majority of its revenue derived from Mainland China.
69GF Score
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