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Sheng Yuan HoldingsHKSE:00851 +3.13%28 WACC % is 5.44% as of Sep. 03, 2026, which is 11% below its 10-year median of 6.10. GuruFocus rates HKSE:00851 with a GF Score™ of 28/100 and a GF Value™ of HK$0.69 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 823 Capital Markets companies, Sheng Yuan Holdings ranks better than 81.53% on this metric.
As of today (2026-09-03), Sheng Yuan Holdings's weighted average cost of capital is 5.44%%. Sheng Yuan Holdings's ROIC % is 40.97% (calculated using TTM income statement data).
Sheng Yuan 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.
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, Sheng Yuan Holdings's weighted average cost of capital is 5.44%%. Sheng Yuan Holdings's ROIC % is 40.97% (calculated using TTM income statement data).
Sheng Yuan 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.
Related Terms
Sheng Yuan Holdings WACC % Historical Data
* Premium members only.
The historical data trend for Sheng Yuan 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 Capital Markets subindustry, Sheng Yuan 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.
Sheng Yuan Holdings WACC % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Sheng Yuan Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Sheng Yuan 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, Sheng Yuan Holdings's market capitalization (E) is HK$145.525 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, Sheng Yuan Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$1.8187 Mil.
a) weight of equity = E / (E + D) = 145.525 / (145.525 + 1.8187) = 0.9877
b) weight of debt = D / (E + D) = 1.8187 / (145.525 + 1.8187) = 0.0123
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 4.772%. 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. Sheng Yuan Holdings's beta is 0.1107.
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 = 4.772% + 0.1107 * 6% = 5.4362%
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, Sheng Yuan Holdings's interest expense (positive number) was HK$0.111 Mil. Its total Book Value of Debt (D) is HK$1.8187 Mil.
Cost of Debt = 0.111 / 1.8187 = 6.1033%.
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 = 0.655 / 10.337 = 6.34%.
Sheng Yuan 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)
=
0.9877
*
5.4362%
+
0.0123
*
6.1033%
*
(1 - 6.34%)
=
5.44%
* 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.
Sheng Yuan Holdings (HKSE:00851) has a WACC % of 5.44% as of Sep. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sheng Yuan Holdings and its competitors. This is 11% below median its historical median of 6.10. Over the past decade, Sheng Yuan Holdings' WACC % has ranged from 2.44 to 9.27. According to the industry distribution chart, Sheng Yuan Holdings ranks #152 out of 823 companies in the Capital Markets industry, placing it in the top 18.5%.
Is Sheng Yuan Holdings' WACC % too high?
Sheng Yuan Holdings' current WACC % of 5.44% is 11% below median its 10-year median of 6.10. Over the past 10 years, this metric has ranged from a low of 2.44 to a high of 9.27. The Capital Markets industry median WACC % is 9.26. Sheng Yuan Holdings' value of 5.44% is 41.3% below this industry median. Based on the distribution chart, Sheng Yuan Holdings ranks #152 out of 823 companies in the Capital Markets industry, which is in the top quartile — a strong position relative to peers. Overall, Sheng Yuan Holdings has a GF Score™ of 28/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sheng Yuan Holdings' WACC % compare to MS and GS?
According to the Capital Markets industry distribution chart, Sheng Yuan Holdings ranks #152 out of 823 companies for WACC %. This places Sheng Yuan Holdings in the top 19% of its industry — outperforming the majority of peers. The industry median WACC % is 9.26. Sheng Yuan Holdings' value of 5.44% is 41.3% below this benchmark. Historically, Sheng Yuan Holdings' own WACC % has ranged from 2.44 to 9.27 over the past decade. While the company's 10-year median is 6.10 vs. the industry median of 9.26, Sheng Yuan 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 Capital Markets company?
The median WACC % among Capital Markets companies is 9.26, based on 823 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. Sheng Yuan Holdings's current WACC % of 5.44% is 41.3% 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 Sheng Yuan Holdings and its competitors. For the Capital Markets industry, the median WACC % is 9.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sheng Yuan Holdings's current WACC % is 5.44%, which is 11% below median its own 10-year median of 6.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sheng Yuan Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sheng Yuan Holdings (HKSE:00851) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.69, compared to a current price of HK$0.17 — trading 76.1% below its estimated fair value. The current WACC % is 5.44%, which is 11% below median its 10-year median of 6.10 and 41.3% below the Capital Markets industry median of 9.26. Sheng Yuan Holdings' overall GF Score™ is 28/100 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 Sheng Yuan Holdings (HKSE:00851), the current WACC % is 5.44% as of Sep. 03, 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 Sheng Yuan Holdings (HKSE:00851) Overvalued in 2026?
Based on GuruFocus' analysis, Sheng Yuan Holdings stock appears to be undervalued.
The current stock price of HK$0.17 is trading 76.1% below its estimated GF Value™ of HK$0.69.
GuruFocus considers Sheng Yuan Holdings to be Possible Value Trap.
Key valuation signals for HKSE:00851:
WACC %: 5.44% (11% below median its 10-year median of 6.10)
GF Value™: HK$0.69 vs. price of HK$0.17 (76.1% below fair value)
Industry Position: 41.3% below the Capital Markets median (#152 of 823)
No single metric tells the full story. See the HKSE:00851 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sheng Yuan Holdings Ltd is an investment holding company. The company through its subsidiaries is engaged in the provision of financial services in Hong Kong. The operating business segments are securities brokerage and financial services is engaged in the provision of discretionary and non-discretionary dealing services for securities, securities placing and underwriting services, margin financing and money lending services, corporate finance advisory and general advisory services; asset management services provides fund management and discretionary portfolio management and investment advisory services; the proprietary trading segment is engaged in investment holding and securities trading; and trading business is engaged in Financing services. It derives revenue from Hong Kong.
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