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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.
United Strength Power HoldingsHKSE:02337 +0.36%59 WACC % is 2.22% as of Sep. 21, 2026, which is 72% below its 10-year median of 8.04. GuruFocus rates HKSE:02337 with a GF Score™ of 59/100. The stock has 4 warning signs investors should review. Among 1,043 Oil & Gas companies, United Strength Power Holdings ranks better than 92.43% on this metric.
As of today (2026-09-21), United Strength Power Holdings's weighted average cost of capital is 2.22%%. United Strength Power Holdings's ROIC % is 0.00% (calculated using TTM income statement data).
United Strength Power 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.
United Strength Power Holdings (HKSE:02337) 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, United Strength Power Holdings's weighted average cost of capital is 2.22%%. United Strength Power Holdings's ROIC % is 0.00% (calculated using TTM income statement data).
United Strength Power 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
United Strength Power 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 Oil & Gas Refining & Marketing subindustry, United Strength Power 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.
United Strength Power Holdings WACC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, United Strength Power Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where United Strength Power 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, United Strength Power Holdings's market capitalization (E) is HK$524.303 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, United Strength Power Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$1191.8229 Mil.
a) weight of equity = E / (E + D) = 524.303 / (524.303 + 1191.8229) = 0.3055
b) weight of debt = D / (E + D) = 1191.8229 / (524.303 + 1191.8229) = 0.6945
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 4.951%. 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. United Strength Power Holdings's beta is -0.5147.
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 = 4.951% + -0.5147 * 6% = 1.8628%
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, United Strength Power Holdings's interest expense (positive number) was HK$28.2902 Mil. Its total Book Value of Debt (D) is HK$1191.8229 Mil.
Cost of Debt = 28.2902 / 1191.8229 = 2.3737%.
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 / 48.8344 = 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.
United Strength Power Holdings (HKSE:02337) has a WACC % of 2.22% as of Sep. 21, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on United Strength Power Holdings and its competitors. This is 72% below median its historical median of 8.04. Over the past decade, United Strength Power Holdings' WACC % has ranged from 0.68 to 8.56. According to the industry distribution chart, United Strength Power Holdings ranks #79 out of 1043 companies in the Oil & Gas industry, placing it in the top 7.6%.
Is United Strength Power Holdings' WACC % too high?
United Strength Power Holdings' current WACC % of 2.22% is 72% below median its 10-year median of 8.04. Over the past 10 years, this metric has ranged from a low of 0.68 to a high of 8.56. The Oil & Gas industry median WACC % is 7.52. United Strength Power Holdings' value of 2.22% is 70.5% below this industry median. Based on the distribution chart, United Strength Power Holdings ranks #79 out of 1043 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, United Strength Power Holdings has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does United Strength Power Holdings' WACC % compare to MPC and VLO?
According to the Oil & Gas industry distribution chart, United Strength Power Holdings ranks #79 out of 1043 companies for WACC %. This places United Strength Power Holdings in the top 8% of its industry — outperforming the majority of peers. The industry median WACC % is 7.52. United Strength Power Holdings' value of 2.22% is 70.5% below this benchmark. Historically, United Strength Power Holdings' own WACC % has ranged from 0.68 to 8.56 over the past decade. While the company's 10-year median is 8.04 vs. the industry median of 7.52, United Strength Power 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 Oil & Gas company?
The median WACC % among Oil & Gas companies is 7.52, based on 1,043 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. United Strength Power Holdings's current WACC % of 2.22% is 70.5% 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 United Strength Power Holdings and its competitors. For the Oil & Gas industry, the median WACC % is 7.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Strength Power Holdings's current WACC % is 2.22%, which is 72% below median its own 10-year median of 8.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Strength Power Holdings stock overvalued right now?
United Strength Power Holdings (HKSE:02337) has a current WACC % of 2.22%. The current WACC % is 2.22%, which is 72% below median its 10-year median of 8.04 and 70.5% below the Oil & Gas industry median of 7.52. United Strength Power Holdings' overall GF Score™ is 59/100 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 United Strength Power Holdings (HKSE:02337), the current WACC % is 2.22% as of Sep. 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.
United Strength Power Holdings Ltd operates a vehicle natural gas refueling station in the Jilin province of China. The company sells compressed natural gas, liquefied natural gas, and liquefied petroleum gas. It operates through three business segments, namely, the Sale of refined oil, the Sale of natural gas, and the Provision of transportation services. The company generates maximum revenue from the sale of the refined oil segment, which carries out sales of refined oil to vehicular end-users by operating petroleum refuelling stations, and sales of refined oil to other petroleum refuelling stations, construction sites, and other industrial users by operating petroleum storage facilities.
59GF Score
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