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Shenghui Cleanness Group HoldingsHKSE:02521 +2.97%43 WACC % is 10.42% as of Aug. 03, 2026, which is 6% above its 10-year median of 9.81. GuruFocus rates HKSE:02521 with a GF Score™ of 43/100. The stock has 6 warning signs investors should review. Among 95 Personal Services companies, Shenghui Cleanness Group Holdings ranks worse than 83.16% on this metric.
As of today (2026-08-03), Shenghui Cleanness Group Holdings's weighted average cost of capital is 10.42%%. Shenghui Cleanness Group Holdings's ROIC % is 9.29% (calculated using TTM income statement data).
Shenghui Cleanness Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Shenghui Cleanness Group Holdings (HKSE:02521) 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, Shenghui Cleanness Group Holdings's weighted average cost of capital is 10.42%%. Shenghui Cleanness Group Holdings's ROIC % is 9.29% (calculated using TTM income statement data).
Shenghui Cleanness Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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
Shenghui Cleanness Group 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 Personal Services subindustry, Shenghui Cleanness 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.
Shenghui Cleanness Group Holdings WACC % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Shenghui Cleanness Group Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Shenghui Cleanness Group Holdings's WACC % falls into.
Shenghui Cleanness Group Holdings WACC % Calculation
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, Shenghui Cleanness Group Holdings's market capitalization (E) is HK$2027.724 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, Shenghui Cleanness Group Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$69.5647 Mil.
a) weight of equity = E / (E + D) = 2027.724 / (2027.724 + 69.5647) = 0.9668
b) weight of debt = D / (E + D) = 69.5647 / (2027.724 + 69.5647) = 0.0332
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 4.682%. 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. Shenghui Cleanness Group Holdings's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 = 4.682% + 1 * 6% = 10.682%
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, Shenghui Cleanness Group Holdings's interest expense (positive number) was HK$2.033 Mil. Its total Book Value of Debt (D) is HK$69.5647 Mil.
Cost of Debt = 2.033 / 69.5647 = 2.9225%.
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 = -1.255 / 26.45 = -4.74%, 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.
Shenghui Cleanness Group Holdings (HKSE:02521) has a WACC % of 10.42% as of Aug. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Shenghui Cleanness Group Holdings and its competitors. This is near median its historical median of 9.81. Over the past decade, Shenghui Cleanness Group Holdings' WACC % has ranged from 3.88 to 10.45. According to the industry distribution chart, Shenghui Cleanness Group Holdings ranks #79 out of 95 companies in the Personal Services industry, placing it in the top 83.2%.
Is Shenghui Cleanness Group Holdings' WACC % too high?
Shenghui Cleanness Group Holdings' current WACC % of 10.42% is near median its 10-year median of 9.81. Over the past 10 years, this metric has ranged from a low of 3.88 to a high of 10.45. The Personal Services industry median WACC % is 4.80. Shenghui Cleanness Group Holdings' value of 10.42% is 117.1% above this industry median. Based on the distribution chart, Shenghui Cleanness Group Holdings ranks #79 out of 95 companies in the Personal Services industry, which is in the bottom quartile relative to peers. Overall, Shenghui Cleanness Group Holdings has a GF Score™ of 43/100, reflecting its overall financial health beyond just this single metric.
How does Shenghui Cleanness Group Holdings' WACC % compare to ROL and SCI?
According to the Personal Services industry distribution chart, Shenghui Cleanness Group Holdings ranks #79 out of 95 companies for WACC %. This places Shenghui Cleanness Group Holdings in the lower half of its industry. The industry median WACC % is 4.80. Shenghui Cleanness Group Holdings' value of 10.42% is 117.1% above this benchmark. Historically, Shenghui Cleanness Group Holdings' own WACC % has ranged from 3.88 to 10.45 over the past decade. While the company's 10-year median is 9.81 vs. the industry median of 4.80, Shenghui Cleanness Group Holdings 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 Personal Services company?
The median WACC % among Personal Services companies is 4.80, based on 95 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. Shenghui Cleanness Group Holdings's current WACC % of 10.42% is 117.1% 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 Shenghui Cleanness Group Holdings and its competitors. For the Personal Services industry, the median WACC % is 4.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenghui Cleanness Group Holdings's current WACC % is 10.42%, which is near median its own 10-year median of 9.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenghui Cleanness Group Holdings stock overvalued right now?
Shenghui Cleanness Group Holdings (HKSE:02521) has a current WACC % of 10.42%. The current WACC % is 10.42%, which is near median its 10-year median of 9.81 and 117.1% above the Personal Services industry median of 4.80. Shenghui Cleanness Group Holdings' overall GF Score™ is 43/100 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 Shenghui Cleanness Group Holdings (HKSE:02521), the current WACC % is 10.42% as of Aug. 03, 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.
Shenghui Cleanness Group Holdings Ltd is a cleaning and maintenance services provider in the PRC and a property cleaning service provider in Guangdong province. It has operations in various provincial-level regions in the PRC and serves a wide range of premises including commercial buildings, transportation hubs such as airports, residential premises, shopping malls and commercial complexes, streets, parks, and other public spaces.
43GF Score
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