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Gemdale Properties and InvestmentHKSE:00535 -2.08% WACC % is 8.72% as of Aug. 14, 2026, which is 12% above its 10-year median of 7.76. The stock has 7 warning signs investors should review. Among 1,843 Real Estate companies, Gemdale Properties and Investment ranks worse than 67.23% on this metric.
As of today (2026-08-14), Gemdale Properties and Investment's weighted average cost of capital is 8.72%%. Gemdale Properties and Investment's ROIC % is 0.74% (calculated using TTM income statement data).
Gemdale Properties and Investment 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.
Gemdale Properties and Investment (HKSE:00535) 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, Gemdale Properties and Investment's weighted average cost of capital is 8.72%%. Gemdale Properties and Investment's ROIC % is 0.74% (calculated using TTM income statement data).
Gemdale Properties and Investment 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
Gemdale Properties and Investment 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.
Gemdale Properties and Investment WACC % Competitor Comparison
For the Real Estate - Development subindustry, Gemdale Properties and Investment'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.
Gemdale Properties and Investment WACC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Gemdale Properties and Investment's WACC % distribution charts can be found below:
* The bar in red indicates where Gemdale Properties and Investment's WACC % falls into.
Gemdale Properties and Investment 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, Gemdale Properties and Investment's market capitalization (E) is HK$1561.687 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, Gemdale Properties and Investment's latest one-year semi-annual average Book Value of Debt (D) is HK$12856.667 Mil.
a) weight of equity = E / (E + D) = 1561.687 / (1561.687 + 12856.667) = 0.1083
b) weight of debt = D / (E + D) = 12856.667 / (1561.687 + 12856.667) = 0.8917
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 4.692%. 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. Gemdale Properties and Investment's beta is 1.6668.
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 = 4.692% + 1.6668 * 6% = 14.6928%
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, Gemdale Properties and Investment's interest expense (positive number) was HK$1027.782 Mil. Its total Book Value of Debt (D) is HK$12856.667 Mil.
Cost of Debt = 1027.782 / 12856.667 = 7.9942%.
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 = 67.155 / -3731.429 = -1.8%, 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.
Gemdale Properties and Investment (HKSE:00535) has a WACC % of 8.72% as of Aug. 14, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Gemdale Properties and Investment and its competitors. This is 12% above median its historical median of 7.76. Over the past decade, Gemdale Properties and Investment's WACC % has ranged from 5.18 to 11.18. According to the industry distribution chart, Gemdale Properties and Investment ranks #1239 out of 1843 companies in the Real Estate industry, placing it in the top 67.2%.
Is Gemdale Properties and Investment's WACC % too high?
Gemdale Properties and Investment's current WACC % of 8.72% is 12% above median its 10-year median of 7.76. Over the past 10 years, this metric has ranged from a low of 5.18 to a high of 11.18. The Real Estate industry median WACC % is 6.39. Gemdale Properties and Investment's value of 8.72% is 36.5% above this industry median. Based on the distribution chart, Gemdale Properties and Investment ranks #1239 out of 1843 companies in the Real Estate industry, which is below the industry midpoint.
How does Gemdale Properties and Investment's WACC % compare to competitors?
According to the Real Estate industry distribution chart, Gemdale Properties and Investment ranks #1239 out of 1843 companies for WACC %. This places Gemdale Properties and Investment in the lower half of its industry. The industry median WACC % is 6.39. Gemdale Properties and Investment's value of 8.72% is 36.5% above this benchmark. Historically, Gemdale Properties and Investment's own WACC % has ranged from 5.18 to 11.18 over the past decade. While the company's 10-year median is 7.76 vs. the industry median of 6.39, Gemdale Properties and Investment 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 Real Estate company?
The median WACC % among Real Estate companies is 6.39, based on 1,843 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. Gemdale Properties and Investment's current WACC % of 8.72% is 36.5% 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 Gemdale Properties and Investment and its competitors. For the Real Estate industry, the median WACC % is 6.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gemdale Properties and Investment's current WACC % is 8.72%, which is 12% above median its own 10-year median of 7.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gemdale Properties and Investment stock overvalued right now?
Based on GuruFocus' analysis, Gemdale Properties and Investment (HKSE:00535) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.15, compared to a current price of HK$0.09 — trading 37.3% below its estimated fair value. The current WACC % is 8.72%, which is 12% above median its 10-year median of 7.76 and 36.5% above the Real Estate industry median of 6.39. 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 Gemdale Properties and Investment (HKSE:00535), the current WACC % is 8.72% as of Aug. 14, 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.
Gemdale Properties and Investment Corp Ltd is an investment holding company engaged in real estate development and asset management. The Company develops, sells, invests in, and manages diversified properties including residential properties, industrial parks, commercial offices, rental housing, and commercial properties, while providing integrated spaces and services to businesses and individuals in cities. It operates through the Property Development segment, the Property Investment and Management segment, and the Corporate Others segment, with the Property Development segment generating the majority of the Company's revenue through the development and sale of residential and commercial properties. The Company generates almost all of its revenue from Mainland China.
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