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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.
Chuanglian HoldingsHKSE:02371 -9.35%43 WACC % is 7.25% as of Sep. 04, 2026, which is 6% above its 10-year median of 6.82. GuruFocus rates HKSE:02371 with a GF Score™ of 43/100 and a GF Value™ of HK$0.42 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 269 Education companies, Chuanglian Holdings ranks better than 55.02% on this metric.
As of today (2026-09-04), Chuanglian Holdings's weighted average cost of capital is 7.25%%. Chuanglian Holdings's ROIC % is -11.86% (calculated using TTM income statement data).
Chuanglian 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.
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, Chuanglian Holdings's weighted average cost of capital is 7.25%%. Chuanglian Holdings's ROIC % is -11.86% (calculated using TTM income statement data).
Chuanglian 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
Chuanglian Holdings WACC % Historical Data
* Premium members only.
The historical data trend for Chuanglian Holdings's WACC % can be seen below:
* 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, Chuanglian 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.
Chuanglian Holdings WACC % vs Education Industry
For the Education industry and Consumer Defensive sector, Chuanglian Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Chuanglian 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, Chuanglian Holdings's market capitalization (E) is HK$134.169 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, Chuanglian Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$61.3517 Mil.
a) weight of equity = E / (E + D) = 134.169 / (134.169 + 61.3517) = 0.6862
b) weight of debt = D / (E + D) = 61.3517 / (134.169 + 61.3517) = 0.3138
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 4.752%. 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. Chuanglian Holdings's beta is 0.4021.
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 = 4.752% + 0.4021 * 6% = 7.1646%
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, Chuanglian Holdings's interest expense (positive number) was HK$4.669 Mil. Its total Book Value of Debt (D) is HK$61.3517 Mil.
Cost of Debt = 4.669 / 61.3517 = 7.6102%.
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 = -1.167 / -50.91 = 2.29%.
Chuanglian 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)
=
0.6862
*
7.1646%
+
0.3138
*
7.6102%
*
(1 - 2.29%)
=
7.25%
* 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.
Chuanglian Holdings (HKSE:02371) has a WACC % of 7.25% as of Sep. 04, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Chuanglian Holdings and its competitors. This is near median its historical median of 6.82. Over the past decade, Chuanglian Holdings' WACC % has ranged from 2.78 to 18.40. According to the industry distribution chart, Chuanglian Holdings ranks #121 out of 269 companies in the Education industry, placing it in the top 45%.
Is Chuanglian Holdings' WACC % too high?
Chuanglian Holdings' current WACC % of 7.25% is near median its 10-year median of 6.82. Over the past 10 years, this metric has ranged from a low of 2.78 to a high of 18.40. The Education industry median WACC % is 7.75. Chuanglian Holdings' value of 7.25% is 6.5% below this industry median. Based on the distribution chart, Chuanglian Holdings ranks #121 out of 269 companies in the Education industry, which is above the industry midpoint. Overall, Chuanglian Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chuanglian Holdings' WACC % compare to EDU and TAL?
According to the Education industry distribution chart, Chuanglian Holdings ranks #121 out of 269 companies for WACC %. This puts Chuanglian Holdings in the upper half of its industry. The industry median WACC % is 7.75. Chuanglian Holdings' value of 7.25% is 6.5% below this benchmark. Historically, Chuanglian Holdings' own WACC % has ranged from 2.78 to 18.40 over the past decade. While the company's 10-year median is 6.82 vs. the industry median of 7.75, Chuanglian 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 7.75, 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. Chuanglian Holdings's current WACC % of 7.25% is 6.5% 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 Chuanglian Holdings and its competitors. For the Education industry, the median WACC % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chuanglian Holdings's current WACC % is 7.25%, which is near median its own 10-year median of 6.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chuanglian Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chuanglian Holdings (HKSE:02371) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.42, compared to a current price of HK$0.19 — trading 53.8% below its estimated fair value. The current WACC % is 7.25%, which is near median its 10-year median of 6.82 and 6.5% below the Education industry median of 7.75. Chuanglian Holdings' overall GF Score™ is 43/100 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 Chuanglian Holdings (HKSE:02371), the current WACC % is 7.25% as of Sep. 04, 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 Chuanglian Holdings (HKSE:02371) Overvalued in 2026?
Based on GuruFocus' analysis, Chuanglian Holdings stock appears to be undervalued.
The current stock price of HK$0.19 is trading 53.8% below its estimated GF Value™ of HK$0.42.
GuruFocus considers Chuanglian Holdings to be Possible Value Trap.
Key valuation signals for HKSE:02371:
WACC %: 7.25% (near median its 10-year median of 6.82)
GF Value™: HK$0.42 vs. price of HK$0.19 (53.8% below fair value)
Industry Position: 6.5% below the Education median (#121 of 269)
No single metric tells the full story. See the HKSE:02371 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chuanglian Holdings Ltd is an investment holding company. Along with its subsidiaries, it operates in the following reportable segments; Securities trading, Educational consultancy and online training and education, and Financial services. Maximum revenue is derived from its Financial services segment which provides insurance brokerage services, money lending services, investment advisory services, and finance leasing services. The Securities trading segment is engaged in trading financial assets at fair value through profit or loss; and the Education segment provides educational consultancy, online training, education, and on-site training services. Geographically, it derives key revenue from the People's Republic of China and rest from Hong Kong and other regions.
43GF Score
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