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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.
BExcellent Group HoldingsHKSE:01775 35 WACC % is 4.04% as of Aug. 12, 2026, which is 9% below its 10-year median of 4.43. GuruFocus rates HKSE:01775 with a GF Score™ of 35/100 and a GF Value™ of HK$0.37 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 269 Education companies, BExcellent Group Holdings ranks better than 75.84% on this metric.
As of today (2026-08-12), BExcellent Group Holdings's weighted average cost of capital is 4.04%%. BExcellent Group Holdings's ROIC % is -6.91% (calculated using TTM income statement data).
BExcellent Group 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.
BExcellent Group Holdings (HKSE:01775) 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, BExcellent Group Holdings's weighted average cost of capital is 4.04%%. BExcellent Group Holdings's ROIC % is -6.91% (calculated using TTM income statement data).
BExcellent Group 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.
* 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 Education & Training Services subindustry, BExcellent Group 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.
BExcellent Group Holdings WACC % vs Education Industry
For the Education industry and Consumer Defensive sector, BExcellent Group Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where BExcellent Group 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, BExcellent Group Holdings's market capitalization (E) is HK$175.894 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 Jan. 2026, BExcellent Group Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$96.6073 Mil.
a) weight of equity = E / (E + D) = 175.894 / (175.894 + 96.6073) = 0.6455
b) weight of debt = D / (E + D) = 96.6073 / (175.894 + 96.6073) = 0.3545
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 4.688%. 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. BExcellent Group Holdings's beta is -0.1305.
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 = 4.688% + -0.1305 * 6% = 3.905%
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 Jan. 2026, BExcellent Group Holdings's interest expense (positive number) was HK$4.131 Mil. Its total Book Value of Debt (D) is HK$96.6073 Mil.
Cost of Debt = 4.131 / 96.6073 = 4.2761%.
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 = 1.229 / -3.201 = -38.39%, 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.
BExcellent Group Holdings (HKSE:01775) has a WACC % of 4.04% as of Aug. 12, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on BExcellent Group Holdings and its competitors. This is near median its historical median of 4.43. Over the past decade, BExcellent Group Holdings' WACC % has ranged from 3.45 to 8.96. According to the industry distribution chart, BExcellent Group Holdings ranks #65 out of 269 companies in the Education industry, placing it in the top 24.2%.
Is BExcellent Group Holdings' WACC % too high?
BExcellent Group Holdings' current WACC % of 4.04% is near median its 10-year median of 4.43. Over the past 10 years, this metric has ranged from a low of 3.45 to a high of 8.96. The Education industry median WACC % is 7.74. BExcellent Group Holdings' value of 4.04% is 47.8% below this industry median. Based on the distribution chart, BExcellent Group Holdings ranks #65 out of 269 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, BExcellent Group Holdings has a GF Score™ of 35/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does BExcellent Group Holdings' WACC % compare to EDU and TAL?
According to the Education industry distribution chart, BExcellent Group Holdings ranks #65 out of 269 companies for WACC %. This places BExcellent Group Holdings in the top 24% of its industry — outperforming the majority of peers. The industry median WACC % is 7.74. BExcellent Group Holdings' value of 4.04% is 47.8% below this benchmark. Historically, BExcellent Group Holdings' own WACC % has ranged from 3.45 to 8.96 over the past decade. While the company's 10-year median is 4.43 vs. the industry median of 7.74, BExcellent Group 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 an Education company?
The median WACC % among Education companies is 7.74, based on 269 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. BExcellent Group Holdings's current WACC % of 4.04% is 47.8% 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 BExcellent Group Holdings and its competitors. For the Education industry, the median WACC % is 7.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BExcellent Group Holdings's current WACC % is 4.04%, which is near median its own 10-year median of 4.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BExcellent Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, BExcellent Group Holdings (HKSE:01775) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.37, compared to a current price of HK$0.33 — trading 10.8% below its estimated fair value. The current WACC % is 4.04%, which is near median its 10-year median of 4.43 and 47.8% below the Education industry median of 7.74. BExcellent Group Holdings' overall GF Score™ is 35/100 with 7 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 BExcellent Group Holdings (HKSE:01775), the current WACC % is 4.04% as of Aug. 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 BExcellent Group Holdings (HKSE:01775) Overvalued in 2026?
Based on GuruFocus' analysis, BExcellent Group Holdings stock appears to be undervalued.
The current stock price of HK$0.33 is trading 10.8% below its estimated GF Value™ of HK$0.37.
GuruFocus considers BExcellent Group Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:01775:
WACC %: 4.04% (near median its 10-year median of 4.43)
GF Value™: HK$0.37 vs. price of HK$0.33 (10.8% below fair value)
Industry Position: 47.8% below the Education median (#65 of 269)
No single metric tells the full story. See the HKSE:01775 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BExcellent Group Holdings Ltd is an investment holding company. The company and its subsidiaries provide private supplementary secondary school education services, school services, private secondary day schools, and ancillary education services and products in Hong Kong. Its ancillary education services and products represent education-related income, including interview preparation, language and supplementary primary school education, and tutorial services offered under the Diverse Learning Club, Beacon Childhood, BeConfident, Glocal Education, and Mathgic brands. The company generates the majority of its revenue from private supplementary secondary school education services. It operates in Hong Kong and the PRC, with the majority of its revenue derived from Hong Kong.
35GF Score
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