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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.
Chinney Kin Wing HoldingsHKSE:01556 54 WACC % is 6.17% as of Aug. 06, 2026, which is 26% below its 10-year median of 8.37. GuruFocus rates HKSE:01556 with a GF Score™ of 54/100 and a GF Value™ of HK$0.29 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,812 Construction companies, Chinney Kin Wing Holdings ranks better than 64.24% on this metric.
As of today (2026-08-06), Chinney Kin Wing Holdings's weighted average cost of capital is 6.17%%. Chinney Kin Wing Holdings's ROIC % is 9.68% (calculated using TTM income statement data).
Chinney Kin Wing 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.
Chinney Kin Wing Holdings (HKSE:01556) 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, Chinney Kin Wing Holdings's weighted average cost of capital is 6.17%%. Chinney Kin Wing Holdings's ROIC % is 9.68% (calculated using TTM income statement data).
Chinney Kin Wing 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.
* 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 Engineering & Construction subindustry, Chinney Kin Wing 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.
Chinney Kin Wing Holdings WACC % vs Construction Industry
For the Construction industry and Industrials sector, Chinney Kin Wing Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Chinney Kin Wing 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, Chinney Kin Wing Holdings's market capitalization (E) is HK$405.000 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, Chinney Kin Wing Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$10.7505 Mil.
a) weight of equity = E / (E + D) = 405.000 / (405.000 + 10.7505) = 0.9741
b) weight of debt = D / (E + D) = 10.7505 / (405.000 + 10.7505) = 0.0259
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 4.676%. 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. Chinney Kin Wing Holdings's beta is 0.2711.
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 = 4.676% + 0.2711 * 6% = 6.3026%
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, Chinney Kin Wing Holdings's interest expense (positive number) was HK$0.155 Mil. Its total Book Value of Debt (D) is HK$10.7505 Mil.
Cost of Debt = 0.155 / 10.7505 = 1.4418%.
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 = 30.215 / 163.344 = 18.5%.
* 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.
Chinney Kin Wing Holdings (HKSE:01556) has a WACC % of 6.17% as of Aug. 06, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Chinney Kin Wing Holdings and its competitors. This is 26% below median its historical median of 8.37. Over the past decade, Chinney Kin Wing Holdings' WACC % has ranged from 4.67 to 9.88. According to the industry distribution chart, Chinney Kin Wing Holdings ranks #648 out of 1812 companies in the Construction industry, placing it in the top 35.8%.
Is Chinney Kin Wing Holdings' WACC % too high?
Chinney Kin Wing Holdings' current WACC % of 6.17% is 26% below median its 10-year median of 8.37. Over the past 10 years, this metric has ranged from a low of 4.67 to a high of 9.88. The Construction industry median WACC % is 7.73. Chinney Kin Wing Holdings' value of 6.17% is 20.1% below this industry median. Based on the distribution chart, Chinney Kin Wing Holdings ranks #648 out of 1812 companies in the Construction industry, which is above the industry midpoint. Overall, Chinney Kin Wing Holdings has a GF Score™ of 54/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chinney Kin Wing Holdings' WACC % compare to PWR and FIX?
According to the Construction industry distribution chart, Chinney Kin Wing Holdings ranks #648 out of 1812 companies for WACC %. This puts Chinney Kin Wing Holdings in the upper half of its industry. The industry median WACC % is 7.73. Chinney Kin Wing Holdings' value of 6.17% is 20.1% below this benchmark. Historically, Chinney Kin Wing Holdings' own WACC % has ranged from 4.67 to 9.88 over the past decade. While the company's 10-year median is 8.37 vs. the industry median of 7.73, Chinney Kin Wing 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 Construction company?
The median WACC % among Construction companies is 7.73, 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. Chinney Kin Wing Holdings's current WACC % of 6.17% is 20.1% 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 Chinney Kin Wing Holdings and its competitors. For the Construction industry, the median WACC % is 7.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chinney Kin Wing Holdings's current WACC % is 6.17%, which is 26% below median its own 10-year median of 8.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chinney Kin Wing Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chinney Kin Wing Holdings (HKSE:01556) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.29, compared to a current price of HK$0.27 — trading 6.9% below its estimated fair value. The current WACC % is 6.17%, which is 26% below median its 10-year median of 8.37 and 20.1% below the Construction industry median of 7.73. Chinney Kin Wing Holdings' overall GF Score™ is 54/100 with 2 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 Chinney Kin Wing Holdings (HKSE:01556), the current WACC % is 6.17% as of Aug. 06, 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 Chinney Kin Wing Holdings (HKSE:01556) Overvalued in 2026?
Based on GuruFocus' analysis, Chinney Kin Wing Holdings stock appears to be undervalued.
The current stock price of HK$0.27 is trading 6.9% below its estimated GF Value™ of HK$0.29.
GuruFocus considers Chinney Kin Wing Holdings to be Fairly Valued.
Key valuation signals for HKSE:01556:
WACC %: 6.17% (26% below median its 10-year median of 8.37)
GF Value™: HK$0.29 vs. price of HK$0.27 (6.9% below fair value)
Industry Position: 20.1% below the Construction median (#648 of 1812)
No single metric tells the full story. See the HKSE:01556 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chinney Kin Wing Holdings Ltd is an investment holding company. Its subsidiaries are principally engaged in foundation construction, and drilling and site investigation projects for both public and private sectors in Hong Kong. The company's two reportable operating segments are as follows: i) Foundation construction and ancillary services, and ii) Drilling and site investigation. It generates maximum revenue from the Foundation construction and ancillary services segment. Geographically, it derives a majority of its revenue from Hong Kong.
54GF Score
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