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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.
LX Technology GroupHKSE:02436 -2.63%60 WACC % is 10.08% as of Jul. 26, 2026, which is 18% above its 10-year median of 8.52. GuruFocus rates HKSE:02436 with a GF Score™ of 60/100 and a GF Value™ of HK$6.67 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,514 Hardware companies, LX Technology Group ranks worse than 62.45% on this metric.
As of today (2026-07-26), LX Technology Group's weighted average cost of capital is 10.08%%. LX Technology Group's ROIC % is 1.39% (calculated using TTM income statement data).
LX Technology Group 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.
LX Technology Group (HKSE:02436) 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, LX Technology Group's weighted average cost of capital is 10.08%%. LX Technology Group's ROIC % is 1.39% (calculated using TTM income statement data).
LX Technology Group 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
LX Technology Group WACC % Historical Data
* Premium members only.
The historical data trend for LX Technology Group'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 Computer Hardware subindustry, LX Technology Group'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.
LX Technology Group WACC % vs Hardware Industry
For the Hardware industry and Technology sector, LX Technology Group's WACC % distribution charts can be found below:
* The bar in red indicates where LX Technology Group'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, LX Technology Group's market capitalization (E) is HK$6433.493 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, LX Technology Group's latest one-year semi-annual average Book Value of Debt (D) is HK$927.3123 Mil.
a) weight of equity = E / (E + D) = 6433.493 / (6433.493 + 927.3123) = 0.874
b) weight of debt = D / (E + D) = 927.3123 / (6433.493 + 927.3123) = 0.126
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 4.681%. 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. LX Technology Group's beta is 1.0023.
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 = 4.681% + 1.0023 * 6% = 10.6948%
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, LX Technology Group's interest expense (positive number) was HK$53.868 Mil. Its total Book Value of Debt (D) is HK$927.3123 Mil.
Cost of Debt = 53.868 / 927.3123 = 5.809%.
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 = -0.877 / 11.313 = -7.75%, which is less than 0%. Therefore it's set to 0%.
LX Technology Group'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)
=
0.874
*
10.6948%
+
0.126
*
5.809%
*
(1 - 0%)
=
10.08%
* 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.
LX Technology Group (HKSE:02436) has a WACC % of 10.08% as of Jul. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on LX Technology Group and its competitors. This is 18% above median its historical median of 8.52. Over the past decade, LX Technology Group's WACC % has ranged from 5.24 to 10.08. According to the industry distribution chart, LX Technology Group ranks #1570 out of 2514 companies in the Hardware industry, placing it in the top 62.5%.
Is LX Technology Group's WACC % too high?
LX Technology Group's current WACC % of 10.08% is 18% above median its 10-year median of 8.52. Over the past 10 years, this metric has ranged from a low of 5.24 to a high of 10.08. The Hardware industry median WACC % is 8.23. LX Technology Group's value of 10.08% is 22.6% above this industry median. Based on the distribution chart, LX Technology Group ranks #1570 out of 2514 companies in the Hardware industry, which is below the industry midpoint. Overall, LX Technology Group has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LX Technology Group's WACC % compare to SNDK and DELL?
According to the Hardware industry distribution chart, LX Technology Group ranks #1570 out of 2514 companies for WACC %. This places LX Technology Group in the lower half of its industry. The industry median WACC % is 8.23. LX Technology Group's value of 10.08% is 22.6% above this benchmark. Historically, LX Technology Group's own WACC % has ranged from 5.24 to 10.08 over the past decade. While the company's 10-year median is 8.52 vs. the industry median of 8.23, LX Technology Group 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 a Hardware company?
The median WACC % among Hardware companies is 8.23, based on 2,514 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. LX Technology Group's current WACC % of 10.08% is 22.6% 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 LX Technology Group and its competitors. For the Hardware industry, the median WACC % is 8.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LX Technology Group's current WACC % is 10.08%, which is 18% 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 LX Technology Group stock overvalued right now?
Based on GuruFocus' analysis, LX Technology Group (HKSE:02436) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$6.67, compared to a current price of HK$18.50 — trading 177.4% above its estimated fair value. The current WACC % is 10.08%, which is 18% above median its 10-year median of 8.52 and 22.6% above the Hardware industry median of 8.23. LX Technology Group's overall GF Score™ is 60/100 with 6 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 LX Technology Group (HKSE:02436), the current WACC % is 10.08% as of Jul. 26, 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 LX Technology Group (HKSE:02436) Overvalued in 2026?
Based on GuruFocus' analysis, LX Technology Group stock appears to be overvalued.
The current stock price of HK$18.50 is trading 177.4% above its estimated GF Value™ of HK$6.67.
GuruFocus considers LX Technology Group to be Significantly Overvalued.
Key valuation signals for HKSE:02436:
WACC %: 10.08% (18% above median its 10-year median of 8.52)
GF Value™: HK$6.67 vs. price of HK$18.50 (177.4% above fair value)
Industry Position: 22.6% above the Hardware median (#1570 of 2514)
No single metric tells the full story. See the HKSE:02436 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LX Technology Group Ltd is a device as a service provider in China. It is principally engaged in the sales of refurbished de-commissioned IT devices to, among others, resellers of IT devices, and the provision of the device and IT technical subscription services to SMEs in China. The service line of the company are the Device recycling business, Device subscription services and IT technical subscription services. from which the company earns maximum revenue from the Device recycling business.
60GF Score
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