Hong Yuan Hldg GroupHGYN WACC % is 14.79% as of Jul. 01, 2026, which is 12% below its 10-year median of 16.80. The stock has 4 warning signs investors should review. Among 1,025 Transportation companies, Hong Yuan Hldg Group ranks worse than 95.02% on this metric.
As of today (2026-07-01), Hong Yuan Hldg Group's weighted average cost of capital is 14.79%%. Hong Yuan Hldg Group's ROIC % is 28.47% (calculated using TTM income statement data).
Hong Yuan Hldg Group 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Hong Yuan Hldg Group (OTCPK:HGYN) 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, Hong Yuan Hldg Group's weighted average cost of capital is 14.79%%. Hong Yuan Hldg Group's ROIC % is 28.47% (calculated using TTM income statement data).
Hong Yuan Hldg Group 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.
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 Integrated Freight & Logistics subindustry, Hong Yuan Hldg Group'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.
Hong Yuan Hldg Group WACC % vs Transportation Industry
For the Transportation industry and Industrials sector, Hong Yuan Hldg Group's WACC % distribution charts can be found below:
* The bar in red indicates where Hong Yuan Hldg Group'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, Hong Yuan Hldg Group's market capitalization (E) is $2.754 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, Hong Yuan Hldg Group's latest one-year quarterly average Book Value of Debt (D) is $0.02 Mil.
a) weight of equity = E / (E + D) = 2.754 / (2.754 + 0.02) = 0.9928
b) weight of debt = D / (E + D) = 0.02 / (2.754 + 0.02) = 0.0072
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 4.461%. 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. Hong Yuan Hldg Group's beta is 1.7393.
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 = 4.461% + 1.7393 * 6% = 14.8968%
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, Hong Yuan Hldg Group's interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $0.02 Mil.
Cost of Debt = -0 / 0.02 = 0%.
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 = 0.01 / 0.043 = 23.26%.
Hong Yuan Hldg Group'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)
=
0.9928
*
14.8968%
+
0.0072
*
0%
*
(1 - 23.26%)
=
14.79%
* 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.
Hong Yuan Hldg Group (HGYN) has a WACC % of 14.79% as of Jul. 01, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Hong Yuan Hldg Group and its competitors. This is 12% below median its historical median of 16.80. Over the past decade, Hong Yuan Hldg Group's WACC % has ranged from 8.24 to 39.16. According to the industry distribution chart, Hong Yuan Hldg Group ranks #974 out of 1025 companies in the Transportation industry, placing it in the top 95%.
Is Hong Yuan Hldg Group's WACC % too high?
Hong Yuan Hldg Group's current WACC % of 14.79% is 12% below median its 10-year median of 16.80. Over the past 10 years, this metric has ranged from a low of 8.24 to a high of 39.16. The Transportation industry median WACC % is 7.76. Hong Yuan Hldg Group's value of 14.79% is 90.6% above this industry median. Based on the distribution chart, Hong Yuan Hldg Group ranks #974 out of 1025 companies in the Transportation industry, which is in the bottom quartile relative to peers.
How does Hong Yuan Hldg Group's WACC % compare to SGLY and ATXG?
According to the Transportation industry distribution chart, Hong Yuan Hldg Group ranks #974 out of 1025 companies for WACC %. This places Hong Yuan Hldg Group in the lower half of its industry. The industry median WACC % is 7.76. Hong Yuan Hldg Group's value of 14.79% is 90.6% above this benchmark. Historically, Hong Yuan Hldg Group's own WACC % has ranged from 8.24 to 39.16 over the past decade. While the company's 10-year median is 16.80 vs. the industry median of 7.76, Hong Yuan Hldg Group 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 Transportation company?
The median WACC % among Transportation companies is 7.76, based on 1,025 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. Hong Yuan Hldg Group's current WACC % of 14.79% is 90.6% 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 Hong Yuan Hldg Group and its competitors. For the Transportation industry, the median WACC % is 7.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Yuan Hldg Group's current WACC % is 14.79%, which is 12% below median its own 10-year median of 16.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Yuan Hldg Group stock overvalued right now?
Hong Yuan Hldg Group (HGYN) has a current WACC % of 14.79%. The current WACC % is 14.79%, which is 12% below median its 10-year median of 16.80 and 90.6% above the Transportation industry median of 7.76. 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 Hong Yuan Hldg Group (HGYN), the current WACC % is 14.79% as of Jul. 01, 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.
Hong Yuan Hldg Group, through its subsidiary and the Agreements with Fengcuiyuan, focuses on supply chain management services, mainly engaged in the wholesale and internet sales of fast-moving consumer goods, including food, daily necessities, and electronic products, across various fields such as pre-packaged food, agricultural by-products, and household goods. Supply chain companies help optimize all the activities involved in procuring raw materials and transforming them into products, as well as managing logistics, storage, sales, and shipping those products to consumers, all of which is done using technology such as artificial intelligence, IoT, blockchain, and robots.
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