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As of today (2026-08-21), Seven Elements Investment Holdings's weighted average cost of capital is 9.49%%. Seven Elements Investment Holdings's ROIC % is 2.10% (calculated using TTM income statement data).
Seven Elements Investment Holdings 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.
Seven Elements Investment Holdings (HKSE:01660) 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, Seven Elements Investment Holdings's weighted average cost of capital is 9.49%%. Seven Elements Investment Holdings's ROIC % is 2.10% (calculated using TTM income statement data).
Seven Elements Investment Holdings 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
Seven Elements Investment Holdings 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.
For the Industrial Distribution subindustry, Seven Elements Investment 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.
Seven Elements Investment Holdings WACC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Seven Elements Investment Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Seven Elements Investment Holdings's WACC % falls into.
Seven Elements Investment Holdings 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, Seven Elements Investment Holdings's market capitalization (E) is HK$1400.070 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 Mar. 2026, Seven Elements Investment Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$13.042 Mil.
a) weight of equity = E / (E + D) = 1400.070 / (1400.070 + 13.042) = 0.9908
b) weight of debt = D / (E + D) = 13.042 / (1400.070 + 13.042) = 0.0092
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 4.732%. 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. Seven Elements Investment Holdings's beta is 0.8026.
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 = 4.732% + 0.8026 * 6% = 9.5476%
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 Mar. 2026, Seven Elements Investment Holdings's interest expense (positive number) was HK$0.388 Mil. Its total Book Value of Debt (D) is HK$13.042 Mil.
Cost of Debt = 0.388 / 13.042 = 2.975%.
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 = 3.412 / -6.681 = -51.07%, 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.
Seven Elements Investment Holdings (HKSE:01660) has a WACC % of 9.49% 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 Seven Elements Investment Holdings and its competitors. This is 11% above median its historical median of 8.52. Over the past decade, Seven Elements Investment Holdings' WACC % has ranged from 6.65 to 10.40. According to the industry distribution chart, Seven Elements Investment Holdings ranks #118 out of 161 companies in the Industrial Distribution industry, placing it in the top 73.3%.
Is Seven Elements Investment Holdings' WACC % too high?
Seven Elements Investment Holdings' current WACC % of 9.49% is 11% above median its 10-year median of 8.52. Over the past 10 years, this metric has ranged from a low of 6.65 to a high of 10.40. The Industrial Distribution industry median WACC % is 7.15. Seven Elements Investment Holdings' value of 9.49% is 32.7% above this industry median. Based on the distribution chart, Seven Elements Investment Holdings ranks #118 out of 161 companies in the Industrial Distribution industry, which is below the industry midpoint. Overall, Seven Elements Investment Holdings has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Seven Elements Investment Holdings' WACC % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Seven Elements Investment Holdings ranks #118 out of 161 companies for WACC %. This places Seven Elements Investment Holdings in the lower half of its industry. The industry median WACC % is 7.15. Seven Elements Investment Holdings' value of 9.49% is 32.7% above this benchmark. Historically, Seven Elements Investment Holdings' own WACC % has ranged from 6.65 to 10.40 over the past decade. While the company's 10-year median is 8.52 vs. the industry median of 7.15, Seven Elements Investment Holdings 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 an Industrial Distribution company?
The median WACC % among Industrial Distribution companies is 7.15, based on 161 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. Seven Elements Investment Holdings's current WACC % of 9.49% is 32.7% 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 Seven Elements Investment Holdings and its competitors. For the Industrial Distribution industry, the median WACC % is 7.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Seven Elements Investment Holdings's current WACC % is 9.49%, which is 11% above median its own 10-year median of 8.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Seven Elements Investment Holdings stock overvalued right now?
Based on GuruFocus' analysis, Seven Elements Investment Holdings (HKSE:01660) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.12, compared to a current price of HK$0.23 — trading 88.3% above its estimated fair value. The current WACC % is 9.49%, which is 11% above median its 10-year median of 8.52 and 32.7% above the Industrial Distribution industry median of 7.15. Seven Elements Investment Holdings' overall GF Score™ is 53/100 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 Seven Elements Investment Holdings (HKSE:01660), the current WACC % is 9.49% 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 Seven Elements Investment Holdings (HKSE:01660) Overvalued in 2026?
Based on GuruFocus' analysis, Seven Elements Investment Holdings stock appears to be overvalued.
The current stock price of HK$0.23 is trading 88.3% above its estimated GF Value™ of HK$0.12.
GuruFocus considers Seven Elements Investment Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01660:
WACC %: 9.49% (11% above median its 10-year median of 8.52)
GF Value™: HK$0.12 vs. price of HK$0.23 (88.3% above fair value)
Industry Position: 32.7% above the Industrial Distribution median (#118 of 161)
No single metric tells the full story. See the HKSE:01660 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Seven Elements Investment Holdings Ltd, formerly known as Zhaobangji Lifestyle Holdings Ltd, is an investment holding company. Through its subsidiaries, the organization is engaged in providing construction machinery trading and leasing services. The operating segments of group are Trading; Leasing; Property management; Property leasing, subletting, retail and others; Money lending; and Transportation. It derives maximum revenue from the Leasing segment which involves the Leasing of machinery and provision of related services. Geographically, the company generates a majority of its revenue from Hong Kong.
53GF Score
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