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Kwoon Chung Bus HoldingsHKSE:00306 69 WACC % is 4.84% as of Jul. 25, 2026, which is 73% above its 10-year median of 2.80. GuruFocus rates HKSE:00306 with a GF Score™ of 69/100 and a GF Value™ of HK$3.03 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,028 Transportation companies, Kwoon Chung Bus Holdings ranks better than 74.9% on this metric.
As of today (2026-07-25), Kwoon Chung Bus Holdings's weighted average cost of capital is 4.84%%. Kwoon Chung Bus Holdings's ROIC % is 7.56% (calculated using TTM income statement data).
Kwoon Chung Bus 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Kwoon Chung Bus Holdings (HKSE:00306) 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, Kwoon Chung Bus Holdings's weighted average cost of capital is 4.84%%. Kwoon Chung Bus Holdings's ROIC % is 7.56% (calculated using TTM income statement data).
Kwoon Chung Bus 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.
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 Railroads subindustry, Kwoon Chung Bus 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.
Kwoon Chung Bus Holdings WACC % vs Transportation Industry
For the Transportation industry and Industrials sector, Kwoon Chung Bus Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Kwoon Chung Bus 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, Kwoon Chung Bus Holdings's market capitalization (E) is HK$1296.833 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 Mar. 2026, Kwoon Chung Bus Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$1801.15 Mil.
a) weight of equity = E / (E + D) = 1296.833 / (1296.833 + 1801.15) = 0.4186
b) weight of debt = D / (E + D) = 1801.15 / (1296.833 + 1801.15) = 0.5814
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. Kwoon Chung Bus Holdings's beta is 0.0875.
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% + 0.0875 * 6% = 5.206%
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 Mar. 2026, Kwoon Chung Bus Holdings's interest expense (positive number) was HK$90.814 Mil. Its total Book Value of Debt (D) is HK$1801.15 Mil.
Cost of Debt = 90.814 / 1801.15 = 5.042%.
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 = 27.05 / 295.498 = 9.15%.
* 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.
Kwoon Chung Bus Holdings (HKSE:00306) has a WACC % of 4.84% 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 Kwoon Chung Bus Holdings and its competitors. This is 73% above median its historical median of 2.80. Over the past decade, Kwoon Chung Bus Holdings' WACC % has ranged from 1.34 to 6.16. According to the industry distribution chart, Kwoon Chung Bus Holdings ranks #258 out of 1028 companies in the Transportation industry, placing it in the top 25.1%.
Is Kwoon Chung Bus Holdings' WACC % too high?
Kwoon Chung Bus Holdings' current WACC % of 4.84% is 73% above median its 10-year median of 2.80. Over the past 10 years, this metric has ranged from a low of 1.34 to a high of 6.16. The Transportation industry median WACC % is 7.89. Kwoon Chung Bus Holdings' value of 4.84% is 38.7% below this industry median. Based on the distribution chart, Kwoon Chung Bus Holdings ranks #258 out of 1028 companies in the Transportation industry, which is above the industry midpoint. Overall, Kwoon Chung Bus Holdings has a GF Score™ of 69/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kwoon Chung Bus Holdings' WACC % compare to UNP and CSX?
According to the Transportation industry distribution chart, Kwoon Chung Bus Holdings ranks #258 out of 1028 companies for WACC %. This puts Kwoon Chung Bus Holdings in the upper half of its industry. The industry median WACC % is 7.89. Kwoon Chung Bus Holdings' value of 4.84% is 38.7% below this benchmark. Historically, Kwoon Chung Bus Holdings' own WACC % has ranged from 1.34 to 6.16 over the past decade. While the company's 10-year median is 2.80 vs. the industry median of 7.89, Kwoon Chung Bus 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 Transportation company?
The median WACC % among Transportation companies is 7.89, based on 1,028 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. Kwoon Chung Bus Holdings's current WACC % of 4.84% is 38.7% 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 Kwoon Chung Bus Holdings and its competitors. For the Transportation industry, the median WACC % is 7.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kwoon Chung Bus Holdings's current WACC % is 4.84%, which is 73% above median its own 10-year median of 2.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwoon Chung Bus Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kwoon Chung Bus Holdings (HKSE:00306) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$3.03, compared to a current price of HK$2.72 — trading 10.2% below its estimated fair value. The current WACC % is 4.84%, which is 73% above median its 10-year median of 2.80 and 38.7% below the Transportation industry median of 7.89. Kwoon Chung Bus Holdings' overall GF Score™ is 69/100 with 4 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 Kwoon Chung Bus Holdings (HKSE:00306), the current WACC % is 4.84% 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 Kwoon Chung Bus Holdings (HKSE:00306) Overvalued in 2026?
Based on GuruFocus' analysis, Kwoon Chung Bus Holdings stock appears to be undervalued.
The current stock price of HK$2.72 is trading 10.2% below its estimated GF Value™ of HK$3.03.
GuruFocus considers Kwoon Chung Bus Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:00306:
WACC %: 4.84% (73% above median its 10-year median of 2.80)
GF Value™: HK$3.03 vs. price of HK$2.72 (10.2% below fair value)
Industry Position: 38.7% below the Transportation median (#258 of 1028)
No single metric tells the full story. See the HKSE:00306 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kwoon Chung Bus Holdings Ltd is engaged in transportation businesses. The company's operating segment includes a Non-franchised Bus; Limousine; Franchised Bus and PLB; Mainland China Business and Others. It generates maximum revenue from the Non-franchised bus segment. The Non-franchised bus segment includes the provision of non-franchised bus hire services in Hong Kong, cross-boundary passenger transportation services (other than limousine hire services) between Hong Kong and Mainland China, and other related services. Geographically, it operates in Hong Kong and Macau; and Chinese Mainland.
69GF Score
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