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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Star Shine Holdings GroupHKSE:01440 +22.83%75 WACC % is 13.02% as of Sep. 12, 2026, which is 76% above its 10-year median of 7.39. GuruFocus rates HKSE:01440 with a GF Score™ of 75/100 and a GF Value™ of HK$7.22 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,085 Manufacturing - Apparel & Accessories companies, Star Shine Holdings Group ranks worse than 86.73% on this metric.
As of today (2026-09-12), Star Shine Holdings Group's weighted average cost of capital is 13.02%%. Star Shine Holdings Group's ROIC % is -4.59% (calculated using TTM income statement data).
Star Shine Holdings Group 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.
Star Shine Holdings Group (HKSE:01440) 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, Star Shine Holdings Group's weighted average cost of capital is 13.02%%. Star Shine Holdings Group's ROIC % is -4.59% (calculated using TTM income statement data).
Star Shine Holdings Group 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 Footwear & Accessories subindustry, Star Shine Holdings Group'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.
Star Shine Holdings Group WACC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Star Shine Holdings Group's WACC % distribution charts can be found below:
* The bar in red indicates where Star Shine Holdings Group'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, Star Shine Holdings Group's market capitalization (E) is HK$17687.171 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 Jun. 2026, Star Shine Holdings Group's latest one-year semi-annual average Book Value of Debt (D) is HK$86.3833 Mil.
a) weight of equity = E / (E + D) = 17687.171 / (17687.171 + 86.3833) = 0.9951
b) weight of debt = D / (E + D) = 86.3833 / (17687.171 + 86.3833) = 0.0049
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 4.971%. 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. Star Shine Holdings Group's beta is 1.3480.
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 = 4.971% + 1.3480 * 6% = 13.059%
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 Jun. 2026, Star Shine Holdings Group's interest expense (positive number) was HK$4.608 Mil. Its total Book Value of Debt (D) is HK$86.3833 Mil.
Cost of Debt = 4.608 / 86.3833 = 5.3344%.
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 = 2.163 / -53.507 = -4.04%, 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.
Star Shine Holdings Group (HKSE:01440) has a WACC % of 13.02% as of Sep. 12, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Star Shine Holdings Group and its competitors. This is 76% above median its historical median of 7.39. Over the past decade, Star Shine Holdings Group's WACC % has ranged from 3.90 to 15.40. According to the industry distribution chart, Star Shine Holdings Group ranks #941 out of 1085 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 86.7%.
Is Star Shine Holdings Group's WACC % too high?
Star Shine Holdings Group's current WACC % of 13.02% is 76% above median its 10-year median of 7.39. Over the past 10 years, this metric has ranged from a low of 3.90 to a high of 15.40. The Manufacturing - Apparel & Accessories industry median WACC % is 8.52. Star Shine Holdings Group's value of 13.02% is 52.8% above this industry median. Based on the distribution chart, Star Shine Holdings Group ranks #941 out of 1085 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Star Shine Holdings Group has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Star Shine Holdings Group's WACC % compare to NKE and DECK?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Star Shine Holdings Group ranks #941 out of 1085 companies for WACC %. This places Star Shine Holdings Group in the lower half of its industry. The industry median WACC % is 8.52. Star Shine Holdings Group's value of 13.02% is 52.8% above this benchmark. Historically, Star Shine Holdings Group's own WACC % has ranged from 3.90 to 15.40 over the past decade. While the company's 10-year median is 7.39 vs. the industry median of 8.52, Star Shine Holdings Group 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 Manufacturing - Apparel & Accessories company?
The median WACC % among Manufacturing - Apparel & Accessories companies is 8.52, based on 1,085 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. Star Shine Holdings Group's current WACC % of 13.02% is 52.8% 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 Star Shine Holdings Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median WACC % is 8.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Star Shine Holdings Group's current WACC % is 13.02%, which is 76% above median its own 10-year median of 7.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Star Shine Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Star Shine Holdings Group (HKSE:01440) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$7.22, compared to a current price of HK$14.04 — trading 94.5% above its estimated fair value. The current WACC % is 13.02%, which is 76% above median its 10-year median of 7.39 and 52.8% above the Manufacturing - Apparel & Accessories industry median of 8.52. Star Shine Holdings Group's overall GF Score™ is 75/100 with 3 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 Star Shine Holdings Group (HKSE:01440), the current WACC % is 13.02% as of Sep. 12, 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 Star Shine Holdings Group (HKSE:01440) Overvalued in 2026?
Based on GuruFocus' analysis, Star Shine Holdings Group stock appears to be overvalued.
The current stock price of HK$14.04 is trading 94.5% above its estimated GF Value™ of HK$7.22.
GuruFocus considers Star Shine Holdings Group to be Significantly Overvalued.
Key valuation signals for HKSE:01440:
WACC %: 13.02% (76% above median its 10-year median of 7.39)
GF Value™: HK$7.22 vs. price of HK$14.04 (94.5% above fair value)
Industry Position: 52.8% above the Manufacturing - Apparel & Accessories median (#941 of 1085)
No single metric tells the full story. See the HKSE:01440 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Star Shine Holdings Group Ltd is a long-established lace manufacturer and dyeing service provider. The Group operates through three reportable segments: Lace and Dyeing principally engaged in the manufacturing of lace and provision of dyeing services based on customers orders for lingerie, lace and swimwear fabrics; Footwear principally engaged in design, research and development, sourcing, merchandising, quality control and sales of casual and sports footwear; and IP Merchandise principally engaged in the design, manufacturing, promotion and sale of a diverse multiple products collaborating with international and reputable IP partners, with Footwear generating maximum revenue. Geographically, the Group operates in Hong Kong and the Chinese Mainland.
75GF Score
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