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As of today (2026-07-28), Yanchang Petroleum International's weighted average cost of capital is 5.58%%. Yanchang Petroleum International's ROIC % is -6.86% (calculated using TTM income statement data).
Yanchang Petroleum International 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.
Yanchang Petroleum International (HKSE:00346) 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, Yanchang Petroleum International's weighted average cost of capital is 5.58%%. Yanchang Petroleum International's ROIC % is -6.86% (calculated using TTM income statement data).
Yanchang Petroleum International 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.
Related Terms
Yanchang Petroleum International WACC % Historical Data
* 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 Oil & Gas Integrated subindustry, Yanchang Petroleum International'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.
Yanchang Petroleum International WACC % vs Oil & Gas Industry
Yanchang Petroleum International WACC % Calculation
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, Yanchang Petroleum International's market capitalization (E) is HK$302.528 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 semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Yanchang Petroleum International's latest one-year semi-annual average Book Value of Debt (D) is HK$743.1057 Mil.
a) weight of equity = E / (E + D) = 302.528 / (302.528 + 743.1057) = 0.2893
b) weight of debt = D / (E + D) = 743.1057 / (302.528 + 743.1057) = 0.7107
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 4.6%. 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. Yanchang Petroleum International's beta is 0.6154.
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 = 4.6% + 0.6154 * 6% = 8.2924%
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, Yanchang Petroleum International's interest expense (positive number) was HK$33.238 Mil. Its total Book Value of Debt (D) is HK$743.1057 Mil.
Cost of Debt = 33.238 / 743.1057 = 4.4728%.
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 = 0.182 / -782.204 = -0.02%, which is less than 0%. Therefore it's set to 0%.
* 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.
Yanchang Petroleum International (HKSE:00346) has a WACC % of 5.58% as of Jul. 28, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Yanchang Petroleum International and its competitors. This is near median its historical median of 5.71. Over the past decade, Yanchang Petroleum International's WACC % has ranged from 2.06 to 6.84. According to the industry distribution chart, Yanchang Petroleum International ranks #343 out of 1038 companies in the Oil & Gas industry, placing it in the top 33%.
Is Yanchang Petroleum International's WACC % too high?
Yanchang Petroleum International's current WACC % of 5.58% is near median its 10-year median of 5.71. Over the past 10 years, this metric has ranged from a low of 2.06 to a high of 6.84. The Oil & Gas industry median WACC % is 7.42. Yanchang Petroleum International's value of 5.58% is 24.7% below this industry median. Based on the distribution chart, Yanchang Petroleum International ranks #343 out of 1038 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Yanchang Petroleum International has a GF Score™ of 30/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Yanchang Petroleum International's WACC % compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Yanchang Petroleum International ranks #343 out of 1038 companies for WACC %. This puts Yanchang Petroleum International in the upper half of its industry. The industry median WACC % is 7.42. Yanchang Petroleum International's value of 5.58% is 24.7% below this benchmark. Historically, Yanchang Petroleum International's own WACC % has ranged from 2.06 to 6.84 over the past decade. While the company's 10-year median is 5.71 vs. the industry median of 7.42, Yanchang Petroleum International 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 an Oil & Gas company?
The median WACC % among Oil & Gas companies is 7.42, based on 1,038 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. Yanchang Petroleum International's current WACC % of 5.58% is 24.7% 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 Yanchang Petroleum International and its competitors. For the Oil & Gas industry, the median WACC % is 7.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yanchang Petroleum International's current WACC % is 5.58%, which is near median its own 10-year median of 5.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yanchang Petroleum International stock overvalued right now?
Based on GuruFocus' analysis, Yanchang Petroleum International (HKSE:00346) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.21, compared to a current price of HK$0.28 — trading 31% above its estimated fair value. The current WACC % is 5.58%, which is near median its 10-year median of 5.71 and 24.7% below the Oil & Gas industry median of 7.42. Yanchang Petroleum International's overall GF Score™ is 30/100 with 5 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 Yanchang Petroleum International (HKSE:00346), the current WACC % is 5.58% as of Jul. 28, 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 Yanchang Petroleum International (HKSE:00346) Overvalued in 2026?
Based on GuruFocus' analysis, Yanchang Petroleum International stock appears to be overvalued.
The current stock price of HK$0.28 is trading 31% above its estimated GF Value™ of HK$0.21.
GuruFocus considers Yanchang Petroleum International to be Significantly Overvalued.
Key valuation signals for HKSE:00346:
WACC %: 5.58% (near median its 10-year median of 5.71)
GF Value™: HK$0.21 vs. price of HK$0.28 (31% above fair value)
Industry Position: 24.7% below the Oil & Gas median (#343 of 1038)
No single metric tells the full story. See the HKSE:00346 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Yanchang Petroleum International Business Description
Yanchang Petroleum International Ltd is engaged in supply and procurement operations of oil-related products in the PRC as well as oil and gas exploration, exploitation, sale, and operation in Canada and Madagascar. The operating segments of the company are Exploration, exploitation, and operation, which comprises the oil and gas exploration, exploitation, sale, and operation; and the Supply and procurement business segment involves storage, transportation, trading, and distribution of oil-related products. It generates maximum revenue from the supply and procurement segment. Geographically, it derives the majority of its revenue from the PRC and also has operations in Canada, Hong Kong, and other countries.
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