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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Willis Lease FinanceFRA:WIJ +1.75%89 WACC % is 6.81% as of Jul. 25, 2026, which is 72% above its 10-year median of 3.97. GuruFocus rates FRA:WIJ with a GF Score™ of 89/100 and a GF Value™ of €40.82 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,115 Business Services companies, Willis Lease Finance ranks better than 57.22% on this metric.
As of today (2026-07-25), Willis Lease Finance's weighted average cost of capital is 6.81%%. Willis Lease Finance's ROIC % is 5.83% (calculated using TTM income statement data).
Willis Lease Finance 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.
Willis Lease Finance (FRA:WIJ) 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, Willis Lease Finance's weighted average cost of capital is 6.81%%. Willis Lease Finance's ROIC % is 5.83% (calculated using TTM income statement data).
Willis Lease Finance 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.
* 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 Rental & Leasing Services subindustry, Willis Lease Finance'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.
Willis Lease Finance WACC % vs Business Services Industry
For the Business Services industry and Industrials sector, Willis Lease Finance's WACC % distribution charts can be found below:
* The bar in red indicates where Willis Lease Finance'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, Willis Lease Finance's market capitalization (E) is €1450.528 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, Willis Lease Finance's latest one-year quarterly average Book Value of Debt (D) is €2131.1874 Mil.
a) weight of equity = E / (E + D) = 1450.528 / (1450.528 + 2131.1874) = 0.405
b) weight of debt = D / (E + D) = 2131.1874 / (1450.528 + 2131.1874) = 0.595
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 4.681%. 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. Willis Lease Finance's beta is 1.0922.
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 = 4.681% + 1.0922 * 6% = 11.2342%
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, Willis Lease Finance's interest expense (positive number) was €113.967 Mil. Its total Book Value of Debt (D) is €2131.1874 Mil.
Cost of Debt = 113.967 / 2131.1874 = 5.3476%.
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 = 43.16 / 148.336 = 29.1%.
Willis Lease Finance'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)
=
0.405
*
11.2342%
+
0.595
*
5.3476%
*
(1 - 29.1%)
=
6.81%
* 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.
Willis Lease Finance (FRA:WIJ) has a WACC % of 6.81% as of Jul. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Willis Lease Finance and its competitors. This is 72% above median its historical median of 3.97. Over the past decade, Willis Lease Finance's WACC % has ranged from 2.57 to 6.17. According to the industry distribution chart, Willis Lease Finance ranks #477 out of 1115 companies in the Business Services industry, placing it in the top 42.8%.
Is Willis Lease Finance's WACC % too high?
Willis Lease Finance's current WACC % of 6.81% is 72% above median its 10-year median of 3.97. Over the past 10 years, this metric has ranged from a low of 2.57 to a high of 6.17. The Business Services industry median WACC % is 7.21. Willis Lease Finance's value of 6.81% is 5.5% below this industry median. Based on the distribution chart, Willis Lease Finance ranks #477 out of 1115 companies in the Business Services industry, which is above the industry midpoint. Overall, Willis Lease Finance has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Willis Lease Finance's WACC % compare to PRG and VSTS?
According to the Business Services industry distribution chart, Willis Lease Finance ranks #477 out of 1115 companies for WACC %. This puts Willis Lease Finance in the upper half of its industry. The industry median WACC % is 7.21. Willis Lease Finance's value of 6.81% is 5.5% below this benchmark. Historically, Willis Lease Finance's own WACC % has ranged from 2.57 to 6.17 over the past decade. While the company's 10-year median is 3.97 vs. the industry median of 7.21, Willis Lease Finance 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 Business Services company?
The median WACC % among Business Services companies is 7.21, based on 1,115 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. Willis Lease Finance's current WACC % of 6.81% is 5.5% 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 Willis Lease Finance and its competitors. For the Business Services industry, the median WACC % is 7.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Willis Lease Finance's current WACC % is 6.81%, which is 72% above median its own 10-year median of 3.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Willis Lease Finance stock overvalued right now?
Based on GuruFocus' analysis, Willis Lease Finance (FRA:WIJ) is currently considered Significantly Overvalued. The stock's GF Value™ is €40.82, compared to a current price of €58.00 — trading 42.1% above its estimated fair value. The current WACC % is 6.81%, which is 72% above median its 10-year median of 3.97 and 5.5% below the Business Services industry median of 7.21. Willis Lease Finance's overall GF Score™ is 89/100 with 9 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 Willis Lease Finance (FRA:WIJ), the current WACC % is 6.81% as of Jul. 25, 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 Willis Lease Finance (FRA:WIJ) Overvalued in 2026?
Based on GuruFocus' analysis, Willis Lease Finance stock appears to be overvalued.
The current stock price of €58.00 is trading 42.1% above its estimated GF Value™ of €40.82.
GuruFocus considers Willis Lease Finance to be Significantly Overvalued.
Key valuation signals for FRA:WIJ:
WACC %: 6.81% (72% above median its 10-year median of 3.97)
GF Value™: €40.82 vs. price of €58.00 (42.1% above fair value)
Industry Position: 5.5% below the Business Services median (#477 of 1115)
No single metric tells the full story. See the FRA:WIJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Willis Lease Finance Corp, with its subsidiaries, is a lessor and servicer of commercial aircraft and aircraft engines. The company has two reportable business segments, which include Leasing and Related Operations and Spare Parts Sales. A majority of its revenue is generated from the Leasing and Related Operations segment, which involves acquiring and leasing, under operating leases, commercial aircraft, aircraft engines, and other aircraft equipment and the selective purchase and resale of commercial aircraft engines, aircraft equipment, and other related businesses. Geographically, the company derives maximum Lease rent revenue from the United States, followed by Europe, Asia-Pacific (excluding India), India, South America, Canada, Central America, and the Middle East.
89GF Score
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