Viking HoldingsFRA:ZG8 -1.69%19 WACC % is 9.93% as of Jul. 06, 2026, which is 4% above its 10-year median of 9.53. GuruFocus rates FRA:ZG8 with a GF Score™ of 19/100. The stock has 8 warning signs investors should review. Among 870 Travel & Leisure companies, Viking Holdings ranks worse than 69.08% on this metric.
As of today (2026-07-06), Viking Holdings's weighted average cost of capital is 9.93%%. Viking Holdings's ROIC % is 11.62% (calculated using TTM income statement data).
Viking Holdings 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.
Viking Holdings (FRA:ZG8) 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, Viking Holdings's weighted average cost of capital is 9.93%%. Viking Holdings's ROIC % is 11.62% (calculated using TTM income statement data).
Viking Holdings 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 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
Viking Holdings WACC % Historical Data
* Premium members only.
The historical data trend for Viking 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 Travel Services subindustry, Viking 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.
Viking Holdings WACC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Viking Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Viking 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, Viking Holdings's market capitalization (E) is €39448.142 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, Viking Holdings's latest one-year quarterly average Book Value of Debt (D) is €4956.4716 Mil.
a) weight of equity = E / (E + D) = 39448.142 / (39448.142 + 4956.4716) = 0.8884
b) weight of debt = D / (E + D) = 4956.4716 / (39448.142 + 4956.4716) = 0.1116
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 4.473%. 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. Viking Holdings'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 = 4.473% + 1 * 6% = 10.473%
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, Viking Holdings's interest expense (positive number) was €284.462 Mil. Its total Book Value of Debt (D) is €4956.4716 Mil.
Cost of Debt = 284.462 / 4956.4716 = 5.7392%.
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 = 18.555 / 1046.851 = 1.77%.
Viking 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)
=
0.8884
*
10.473%
+
0.1116
*
5.7392%
*
(1 - 1.77%)
=
9.93%
* 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.
Viking Holdings (FRA:ZG8) has a WACC % of 9.93% as of Jul. 06, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Viking Holdings and its competitors. This is near median its historical median of 9.53. Over the past decade, Viking Holdings' WACC % has ranged from 8.63 to 9.95. According to the industry distribution chart, Viking Holdings ranks #601 out of 870 companies in the Travel & Leisure industry, placing it in the top 69.1%.
Is Viking Holdings' WACC % too high?
Viking Holdings' current WACC % of 9.93% is near median its 10-year median of 9.53. Over the past 10 years, this metric has ranged from a low of 8.63 to a high of 9.95. The Travel & Leisure industry median WACC % is 7.74. Viking Holdings' value of 9.93% is 28.4% above this industry median. Based on the distribution chart, Viking Holdings ranks #601 out of 870 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Viking Holdings has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Viking Holdings' WACC % compare to CCL and EXPE?
According to the Travel & Leisure industry distribution chart, Viking Holdings ranks #601 out of 870 companies for WACC %. This places Viking Holdings in the lower half of its industry. The industry median WACC % is 7.74. Viking Holdings' value of 9.93% is 28.4% above this benchmark. Historically, Viking Holdings' own WACC % has ranged from 8.63 to 9.95 over the past decade. While the company's 10-year median is 9.53 vs. the industry median of 7.74, Viking Holdings 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 Travel & Leisure company?
The median WACC % among Travel & Leisure companies is 7.74, based on 870 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. Viking Holdings's current WACC % of 9.93% is 28.4% 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 Viking Holdings and its competitors. For the Travel & Leisure industry, the median WACC % is 7.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Viking Holdings's current WACC % is 9.93%, which is near median its own 10-year median of 9.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Viking Holdings stock overvalued right now?
Viking Holdings (FRA:ZG8) has a current WACC % of 9.93%. The current WACC % is 9.93%, which is near median its 10-year median of 9.53 and 28.4% above the Travel & Leisure industry median of 7.74. Viking Holdings' overall GF Score™ is 19/100 with 8 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 Viking Holdings (FRA:ZG8), the current WACC % is 9.93% as of Jul. 06, 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.
Viking Holdings Ltd is a travel company, with a fleet of 92 small ships, which view as floating hotels. It offers travel experiences on all seven continents in all three categories of the cruise industry river, ocean, and expedition cruising. The Group defines its products based on the type of cruise offering and language of the cruise service. The River segment provides river cruises outside the United States to English-speaking passengers. The Ocean segment offers ocean cruises to English-speaking passengers. Other include operating segments that are not individually reportable, consisting of expedition cruises for English-speaking passengers (Expedition), Mississippi River cruises for English-speaking passengers, and Viking China, which includes cruises for Mandarin.
19GF Score
Get the complete analysis for FRA:ZG8
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:ZG8 has been successfully added to your 
