As of today (2026-07-08), Strip Tinning Holdings's weighted average cost of capital is 6.17%%. Strip Tinning Holdings's ROIC % is -22.55% (calculated using TTM income statement data).
Strip Tinning 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, Strip Tinning Holdings's weighted average cost of capital is 6.17%%. Strip Tinning Holdings's ROIC % is -22.55% (calculated using TTM income statement data).
Strip Tinning 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.
* 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 Auto Parts subindustry, Strip Tinning 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.
Strip Tinning Holdings WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Strip Tinning Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Strip Tinning 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, Strip Tinning Holdings's market capitalization (E) is €3.908 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, Strip Tinning Holdings's latest one-year semi-annual average Book Value of Debt (D) is €7.351 Mil.
a) weight of equity = E / (E + D) = 3.908 / (3.908 + 7.351) = 0.3471
b) weight of debt = D / (E + D) = 7.351 / (3.908 + 7.351) = 0.6529
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. Strip Tinning Holdings's beta is -1.4759.
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% + -1.4759 * 6% = -3.9138%
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, Strip Tinning Holdings's interest expense (positive number) was €0.914 Mil. Its total Book Value of Debt (D) is €7.351 Mil.
Cost of Debt = 0.914 / 7.351 = 12.4337%.
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 = -0.194 / -2.652 = 7.32%.
Strip Tinning 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)
=
0.3471
*
-3.9138%
+
0.6529
*
12.4337%
*
(1 - 7.32%)
=
6.17%
* 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.
Strip Tinning Holdings (FRA:VH3) has a WACC % of 6.17% as of Jul. 08, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Strip Tinning Holdings and its competitors. This is 27% below median its historical median of 8.47. Over the past decade, Strip Tinning Holdings' WACC % has ranged from 2.91 to 11.56. According to the industry distribution chart, Strip Tinning Holdings ranks #683 out of 1343 companies in the Vehicles & Parts industry, placing it in the top 50.9%.
Is Strip Tinning Holdings' WACC % too high?
Strip Tinning Holdings' current WACC % of 6.17% is 27% below median its 10-year median of 8.47. Over the past 10 years, this metric has ranged from a low of 2.91 to a high of 11.56. The Vehicles & Parts industry median WACC % is 8.58. Strip Tinning Holdings' value of 6.17% is 28.1% below this industry median. Based on the distribution chart, Strip Tinning Holdings ranks #683 out of 1343 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Strip Tinning Holdings has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Strip Tinning Holdings' WACC % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Strip Tinning Holdings ranks #683 out of 1343 companies for WACC %. This places Strip Tinning Holdings in the lower half of its industry. The industry median WACC % is 8.58. Strip Tinning Holdings' value of 6.17% is 28.1% below this benchmark. Historically, Strip Tinning Holdings' own WACC % has ranged from 2.91 to 11.56 over the past decade. While the company's 10-year median is 8.47 vs. the industry median of 8.58, Strip Tinning Holdings 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 Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.58, based on 1,343 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. Strip Tinning Holdings's current WACC % of 6.17% is 28.1% 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 Strip Tinning Holdings and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Strip Tinning Holdings's current WACC % is 6.17%, which is 27% below median its own 10-year median of 8.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Strip Tinning Holdings stock overvalued right now?
Strip Tinning Holdings (FRA:VH3) has a current WACC % of 6.17%. The stock's GF Value™ is €0.33, compared to a current price of €0.18 — trading 45.5% below its estimated fair value. The current WACC % is 6.17%, which is 27% below median its 10-year median of 8.47 and 28.1% below the Vehicles & Parts industry median of 8.58. Strip Tinning Holdings' overall GF Score™ is 30/100 with 6 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 Strip Tinning Holdings (FRA:VH3), the current WACC % is 6.17% as of Jul. 08, 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 Strip Tinning Holdings (FRA:VH3) Overvalued in 2026?
Based on GuruFocus' analysis, Strip Tinning Holdings stock appears to be undervalued.
The current stock price of €0.18 is trading 45.5% below its estimated GF Value™ of €0.33.
Key valuation signals for FRA:VH3:
WACC %: 6.17% (27% below median its 10-year median of 8.47)
GF Value™: €0.33 vs. price of €0.18 (45.5% below fair value)
Industry Position: 28.1% below the Vehicles & Parts median (#683 of 1343)
No single metric tells the full story. See the FRA:VH3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Strip Tinning Holdings PLC is as a holding company which manufactures automotive busbar, ancillary connectors and flexible printed circuits. Its activities are design and manufacture of a full suite of glazing connectors, Flexible Printed Circuits and Cell Contact Systems for Electric Vehicles. It has four product groups, all serving the automotive electrical connector market. Glazing segment is made up of Busbar and Connectors, whilst its Battery Technology (BT)segment contains Flexible Printed Circuits (FPC) and Cell Contacting Systems (CCS). The Battery Technology segment has other uses such as static battery storage and other adjacent markets. Its segments are Glazing, and EV. It generates majority of revenue from Glazing. It has presence in UK, Rest of Europe, and Rest of world.
30GF Score
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