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As of today (2026-08-21), Technovator International's weighted average cost of capital is 4.54%%. Technovator International's ROIC % is -14.83% (calculated using TTM income statement data).
Technovator 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.
Technovator International (HKSE:01206) 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, Technovator International's weighted average cost of capital is 4.54%%. Technovator International's ROIC % is -14.83% (calculated using TTM income statement data).
Technovator 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.
* 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 Building Products & Equipment subindustry, Technovator 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.
Technovator International WACC % vs Construction Industry
For the Construction industry and Industrials sector, Technovator International's WACC % distribution charts can be found below:
* The bar in red indicates where Technovator International'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, Technovator International's market capitalization (E) is HK$159.567 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, Technovator International's latest one-year semi-annual average Book Value of Debt (D) is HK$376.8963 Mil.
a) weight of equity = E / (E + D) = 159.567 / (159.567 + 376.8963) = 0.2974
b) weight of debt = D / (E + D) = 376.8963 / (159.567 + 376.8963) = 0.7026
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 4.724%. 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. Technovator International's beta is 0.5598.
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 = 4.724% + 0.5598 * 6% = 8.0828%
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, Technovator International's interest expense (positive number) was HK$11.45 Mil. Its total Book Value of Debt (D) is HK$376.8963 Mil.
Cost of Debt = 11.45 / 376.8963 = 3.038%.
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 = 5.952 / -543.45 = -1.1%, 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.
Technovator International (HKSE:01206) has a WACC % of 4.54% as of Aug. 21, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Technovator International and its competitors. This is 31% below median its historical median of 6.61. Over the past decade, Technovator International's WACC % has ranged from 4.55 to 12.56. According to the industry distribution chart, Technovator International ranks #456 out of 1812 companies in the Construction industry, placing it in the top 25.2%.
Is Technovator International's WACC % too high?
Technovator International's current WACC % of 4.54% is 31% below median its 10-year median of 6.61. Over the past 10 years, this metric has ranged from a low of 4.55 to a high of 12.56. The Construction industry median WACC % is 7.68. Technovator International's value of 4.54% is 40.8% below this industry median. Based on the distribution chart, Technovator International ranks #456 out of 1812 companies in the Construction industry, which is above the industry midpoint. Overall, Technovator International has a GF Score™ of 36/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Technovator International's WACC % compare to TT and JCI?
According to the Construction industry distribution chart, Technovator International ranks #456 out of 1812 companies for WACC %. This puts Technovator International in the upper half of its industry. The industry median WACC % is 7.68. Technovator International's value of 4.54% is 40.8% below this benchmark. Historically, Technovator International's own WACC % has ranged from 4.55 to 12.56 over the past decade. While the company's 10-year median is 6.61 vs. the industry median of 7.68, Technovator 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 a Construction company?
The median WACC % among Construction companies is 7.68, based on 1,812 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. Technovator International's current WACC % of 4.54% is 40.8% 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 Technovator International and its competitors. For the Construction industry, the median WACC % is 7.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Technovator International's current WACC % is 4.54%, which is 31% below median its own 10-year median of 6.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Technovator International stock overvalued right now?
Based on GuruFocus' analysis, Technovator International (HKSE:01206) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.26, compared to a current price of HK$0.20 — trading 21.5% below its estimated fair value. The current WACC % is 4.54%, which is 31% below median its 10-year median of 6.61 and 40.8% below the Construction industry median of 7.68. Technovator International's overall GF Score™ is 36/100 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 Technovator International (HKSE:01206), the current WACC % is 4.54% as of Aug. 21, 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 Technovator International (HKSE:01206) Overvalued in 2026?
Based on GuruFocus' analysis, Technovator International stock appears to be undervalued.
The current stock price of HK$0.20 is trading 21.5% below its estimated GF Value™ of HK$0.26.
GuruFocus considers Technovator International to be Modestly Undervalued.
Key valuation signals for HKSE:01206:
WACC %: 4.54% (31% below median its 10-year median of 6.61)
GF Value™: HK$0.26 vs. price of HK$0.20 (21.5% below fair value)
Industry Position: 40.8% below the Construction median (#456 of 1812)
No single metric tells the full story. See the HKSE:01206 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Technovator International Ltd is a provider of integrated building automation and energy management systems. It is structured into three business units: Smart transportation business, Smart building and complex business, and Smart energy business. STB comprises a series of proprietary software and hardware products and systems for rail transit. SBB provides integrated intelligence solutions and efficiency management services. SEB comprised a series of technologies such as regional energy planning, integrated utilization of industrial waste heat recovery technology, and heat pump technology. It also offers control security systems for multi-level remote surveillance. The company derives the majority of the revenue from Smart buildings and complexes.
36GF Score
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