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China Wantian HoldingsHKSE:01854 -0.42%66 WACC % is 0.1% as of Aug. 20, 2026, which is 99% below its 10-year median of 6.90. GuruFocus rates HKSE:01854 with a GF Score™ of 66/100 and a GF Value™ of HK$3.89 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 316 Retail - Defensive companies, China Wantian Holdings ranks better than 98.73% on this metric.
As of today (2026-08-20), China Wantian Holdings's weighted average cost of capital is 0.1%%. China Wantian Holdings's ROIC % is -80.32% (calculated using TTM income statement data).
China Wantian 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.
China Wantian Holdings (HKSE:01854) 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, China Wantian Holdings's weighted average cost of capital is 0.1%%. China Wantian Holdings's ROIC % is -80.32% (calculated using TTM income statement data).
China Wantian 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 Food Distribution subindustry, China Wantian 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.
China Wantian Holdings WACC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, China Wantian Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where China Wantian 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, China Wantian Holdings's market capitalization (E) is HK$2404.404 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, China Wantian Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$54.7927 Mil.
a) weight of equity = E / (E + D) = 2404.404 / (2404.404 + 54.7927) = 0.9777
b) weight of debt = D / (E + D) = 54.7927 / (2404.404 + 54.7927) = 0.0223
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 4.7%. 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. China Wantian Holdings's beta is -0.7834.
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 = 4.7% + -0.7834 * 6% = -0.0004%
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, China Wantian Holdings's interest expense (positive number) was HK$2.561 Mil. Its total Book Value of Debt (D) is HK$54.7927 Mil.
Cost of Debt = 2.561 / 54.7927 = 4.674%.
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 = 0.16 / -142.64 = -0.11%, which is less than 0%. Therefore it's set to 0%.
China Wantian Holdings's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9777
*
-0.0004%
+
0.0223
*
4.674%
*
(1 - 0%)
=
0.1%
* 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.
China Wantian Holdings (HKSE:01854) has a WACC % of 0.1% as of Aug. 20, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on China Wantian Holdings and its competitors. This is 99% below median its historical median of 6.90. Over the past decade, China Wantian Holdings' WACC % has ranged from 0.05 to 9.31. According to the industry distribution chart, China Wantian Holdings ranks #4 out of 316 companies in the Retail - Defensive industry, placing it in the top 1.3%.
Is China Wantian Holdings' WACC % too high?
China Wantian Holdings' current WACC % of 0.1% is 99% below median its 10-year median of 6.90. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 9.31. The Retail - Defensive industry median WACC % is 6.09. China Wantian Holdings' value of 0.1% is 98.4% below this industry median. Based on the distribution chart, China Wantian Holdings ranks #4 out of 316 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, China Wantian Holdings has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Wantian Holdings' WACC % compare to SYY and USFD?
According to the Retail - Defensive industry distribution chart, China Wantian Holdings ranks #4 out of 316 companies for WACC %. This places China Wantian Holdings in the top 1% of its industry — outperforming the majority of peers. The industry median WACC % is 6.09. China Wantian Holdings' value of 0.1% is 98.4% below this benchmark. Historically, China Wantian Holdings' own WACC % has ranged from 0.05 to 9.31 over the past decade. While the company's 10-year median is 6.90 vs. the industry median of 6.09, China Wantian 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 Retail - Defensive company?
The median WACC % among Retail - Defensive companies is 6.09, based on 316 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. China Wantian Holdings's current WACC % of 0.1% is 98.4% 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 China Wantian Holdings and its competitors. For the Retail - Defensive industry, the median WACC % is 6.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Wantian Holdings's current WACC % is 0.1%, which is 99% below median its own 10-year median of 6.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Wantian Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Wantian Holdings (HKSE:01854) is currently considered Possible Value Trap. The stock's GF Value™ is HK$3.89, compared to a current price of HK$1.18 — trading 69.7% below its estimated fair value. The current WACC % is 0.1%, which is 99% below median its 10-year median of 6.90 and 98.4% below the Retail - Defensive industry median of 6.09. China Wantian Holdings' overall GF Score™ is 66/100 with 4 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 China Wantian Holdings (HKSE:01854), the current WACC % is 0.1% as of Aug. 20, 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 China Wantian Holdings (HKSE:01854) Overvalued in 2026?
Based on GuruFocus' analysis, China Wantian Holdings stock appears to be undervalued.
The current stock price of HK$1.18 is trading 69.7% below its estimated GF Value™ of HK$3.89.
GuruFocus considers China Wantian Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01854:
WACC %: 0.1% (99% below median its 10-year median of 6.90)
GF Value™: HK$3.89 vs. price of HK$1.18 (69.7% below fair value)
Industry Position: 98.4% below the Retail - Defensive median (#4 of 316)
No single metric tells the full story. See the HKSE:01854 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Wantian Holdings Ltd is an investment holding company, and its principal subsidiaries are engaged in food supply, catering services, and environmental protection and technology services. The Group has three reportable segments, namely food supply, catering services, and environmental protection and technology services. The company generates a majority of its revenue from its Food Supply segment, which includes sourcing, processing, and supplying of consumable fresh food ingredients in Hong Kong and the People's Republic of China (PRC). Its geographic operations include the People's Republic of China, which generates the majority of its revenue, and the rest from Hong Kong.
66GF Score
Get the complete analysis for HKSE:01854
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