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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.
Hua Xia Water GroupHKSE:08401 WACC % is 9.93% as of Aug. 14, 2026, which is 16% below its 10-year median of 11.80. The stock has 5 warning signs investors should review. Among 1,035 Media - Diversified companies, Hua Xia Water Group ranks worse than 68.31% on this metric.
As of today (2026-08-14), Hua Xia Water Group's weighted average cost of capital is 9.93%%. Hua Xia Water Group's ROIC % is -45.76% (calculated using TTM income statement data).
Hua Xia Water 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.
Hua Xia Water Group (HKSE:08401) 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, Hua Xia Water Group's weighted average cost of capital is 9.93%%. Hua Xia Water Group's ROIC % is -45.76% (calculated using TTM income statement data).
Hua Xia Water 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
Hua Xia Water Group WACC % Historical Data
* Premium members only.
The historical data trend for Hua Xia Water 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 Advertising Agencies subindustry, Hua Xia Water 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.
Hua Xia Water Group WACC % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Hua Xia Water Group's WACC % distribution charts can be found below:
* The bar in red indicates where Hua Xia Water 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, Hua Xia Water Group's market capitalization (E) is HK$24.396 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 Mar. 2026, Hua Xia Water Group's latest one-year semi-annual average Book Value of Debt (D) is HK$0.5877 Mil.
a) weight of equity = E / (E + D) = 24.396 / (24.396 + 0.5877) = 0.9765
b) weight of debt = D / (E + D) = 0.5877 / (24.396 + 0.5877) = 0.0235
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 4.692%. 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. Hua Xia Water Group's beta is 0.8959.
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 = 4.692% + 0.8959 * 6% = 10.0674%
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 Mar. 2026, Hua Xia Water Group's interest expense (positive number) was HK$0.025 Mil. Its total Book Value of Debt (D) is HK$0.5877 Mil.
Cost of Debt = 0.025 / 0.5877 = 4.2539%.
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 = 0.347 / -9.138 = -3.8%, which is less than 0%. Therefore it's set to 0%.
Hua Xia Water 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)
=
0.9765
*
10.0674%
+
0.0235
*
4.2539%
*
(1 - 0%)
=
9.93%
* 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.
Hua Xia Water Group (HKSE:08401) has a WACC % of 9.93% as of Aug. 14, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Hua Xia Water Group and its competitors. This is 16% below median its historical median of 11.80. Over the past decade, Hua Xia Water Group's WACC % has ranged from 6.70 to 29.75. According to the industry distribution chart, Hua Xia Water Group ranks #707 out of 1035 companies in the Media - Diversified industry, placing it in the top 68.3%.
Is Hua Xia Water Group's WACC % too high?
Hua Xia Water Group's current WACC % of 9.93% is 16% below median its 10-year median of 11.80. Over the past 10 years, this metric has ranged from a low of 6.70 to a high of 29.75. The Media - Diversified industry median WACC % is 7.35. Hua Xia Water Group's value of 9.93% is 35.1% above this industry median. Based on the distribution chart, Hua Xia Water Group ranks #707 out of 1035 companies in the Media - Diversified industry, which is below the industry midpoint.
How does Hua Xia Water Group's WACC % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Hua Xia Water Group ranks #707 out of 1035 companies for WACC %. This places Hua Xia Water Group in the lower half of its industry. The industry median WACC % is 7.35. Hua Xia Water Group's value of 9.93% is 35.1% above this benchmark. Historically, Hua Xia Water Group's own WACC % has ranged from 6.70 to 29.75 over the past decade. While the company's 10-year median is 11.80 vs. the industry median of 7.35, Hua Xia Water 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 Media - Diversified company?
The median WACC % among Media - Diversified companies is 7.35, based on 1,035 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. Hua Xia Water Group's current WACC % of 9.93% is 35.1% 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 Hua Xia Water Group and its competitors. For the Media - Diversified industry, the median WACC % is 7.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hua Xia Water Group's current WACC % is 9.93%, which is 16% below median its own 10-year median of 11.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hua Xia Water Group stock overvalued right now?
Based on GuruFocus' analysis, Hua Xia Water Group (HKSE:08401) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.20, compared to a current price of HK$0.04 — trading 82% below its estimated fair value. The current WACC % is 9.93%, which is 16% below median its 10-year median of 11.80 and 35.1% above the Media - Diversified industry median of 7.35. 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 Hua Xia Water Group (HKSE:08401), the current WACC % is 9.93% as of Aug. 14, 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.
Stream Ideas Group Ltd is a Hong Kong-based investment holding company. The company is engaged in the provision of online advertising services. The online advertising services of the company comprise of social viral service, engager service, and mass blogging service. Geographically, the company derives a majority of its revenue from Hong Kong and also has a presence in Taiwan and Southeast Asia.
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