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Nanjing Leads Biolabs CoHKSE:09887 +8.04%10 WACC % is 10.5% as of Aug. 25, 2026, which is 57% above its 10-year median of 6.69. GuruFocus rates HKSE:09887 with a GF Score™ of 10/100. The stock has 1 warning sign investors should review. Among 1,421 Biotechnology companies, Nanjing Leads Biolabs Co ranks worse than 53.84% on this metric.
As of today (2026-08-25), Nanjing Leads Biolabs Co's weighted average cost of capital is 10.5%%. Nanjing Leads Biolabs Co's ROIC % is -37.04% (calculated using TTM income statement data).
Nanjing Leads Biolabs Co 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.
Nanjing Leads Biolabs Co (HKSE:09887) 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, Nanjing Leads Biolabs Co's weighted average cost of capital is 10.5%%. Nanjing Leads Biolabs Co's ROIC % is -37.04% (calculated using TTM income statement data).
Nanjing Leads Biolabs Co 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.
* 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.
Nanjing Leads Biolabs Co WACC % Chart
Nanjing Leads Biolabs Co Annual Data
Trend
Dec23
Dec24
Dec25
WACC %
0.00
3.45
9.93
Nanjing Leads Biolabs Co Semi-Annual Data
Dec23
Jun24
Dec24
Jun25
Dec25
WACC %
0.00
0.00
3.45
2.47
9.93
HKSE:09887 vs VRTX, REGN, RVMD: WACC % Comparison
For the Biotechnology subindustry, Nanjing Leads Biolabs Co'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.
Nanjing Leads Biolabs Co WACC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Nanjing Leads Biolabs Co's WACC % distribution charts can be found below:
* The bar in red indicates where Nanjing Leads Biolabs Co'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, Nanjing Leads Biolabs Co's market capitalization (E) is HK$14837.328 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, Nanjing Leads Biolabs Co's latest one-year semi-annual average Book Value of Debt (D) is HK$307.2943 Mil.
a) weight of equity = E / (E + D) = 14837.328 / (14837.328 + 307.2943) = 0.9797
b) weight of debt = D / (E + D) = 307.2943 / (14837.328 + 307.2943) = 0.0203
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 4.66%. 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. Nanjing Leads Biolabs Co'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 = 4.66% + 1 * 6% = 10.66%
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, Nanjing Leads Biolabs Co's interest expense (positive number) was HK$7.898 Mil. Its total Book Value of Debt (D) is HK$307.2943 Mil.
Cost of Debt = 7.898 / 307.2943 = 2.5702%.
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 = 17.152 / -214.466 = -8%, 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.
Nanjing Leads Biolabs Co (HKSE:09887) has a WACC % of 10.5% as of Aug. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Nanjing Leads Biolabs Co and its competitors. This is 57% above median its historical median of 6.69. Over the past decade, Nanjing Leads Biolabs Co's WACC % has ranged from 3.45 to 10.55. According to the industry distribution chart, Nanjing Leads Biolabs Co ranks #765 out of 1421 companies in the Biotechnology industry, placing it in the top 53.8%.
Is Nanjing Leads Biolabs Co's WACC % too high?
Nanjing Leads Biolabs Co's current WACC % of 10.5% is 57% above median its 10-year median of 6.69. Over the past 10 years, this metric has ranged from a low of 3.45 to a high of 10.55. The Biotechnology industry median WACC % is 10.17. Nanjing Leads Biolabs Co's value of 10.5% is 3.2% above this industry median. Based on the distribution chart, Nanjing Leads Biolabs Co ranks #765 out of 1421 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Nanjing Leads Biolabs Co has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Nanjing Leads Biolabs Co's WACC % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Nanjing Leads Biolabs Co ranks #765 out of 1421 companies for WACC %. This places Nanjing Leads Biolabs Co in the lower half of its industry. The industry median WACC % is 10.17. Nanjing Leads Biolabs Co's value of 10.5% is 3.2% above this benchmark. Historically, Nanjing Leads Biolabs Co's own WACC % has ranged from 3.45 to 10.55 over the past decade. While the company's 10-year median is 6.69 vs. the industry median of 10.17, Nanjing Leads Biolabs Co 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 Biotechnology company?
The median WACC % among Biotechnology companies is 10.17, based on 1,421 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. Nanjing Leads Biolabs Co's current WACC % of 10.5% is 3.2% 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 Nanjing Leads Biolabs Co and its competitors. For the Biotechnology industry, the median WACC % is 10.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nanjing Leads Biolabs Co's current WACC % is 10.5%, which is 57% above median its own 10-year median of 6.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nanjing Leads Biolabs Co stock overvalued right now?
Nanjing Leads Biolabs Co (HKSE:09887) has a current WACC % of 10.5%. The current WACC % is 10.5%, which is 57% above median its 10-year median of 6.69 and 3.2% above the Biotechnology industry median of 10.17. Nanjing Leads Biolabs Co's overall GF Score™ is 10/100 with 1 warning sign 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 Nanjing Leads Biolabs Co (HKSE:09887), the current WACC % is 10.5% as of Aug. 25, 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.
Nanjing Leads Biolabs Co Ltd is a clinical-stage biotechnology company focused on the discovery, development, and commercialization of new therapies in oncology, autoimmune, and other severe diseases. The Group uses its science-driven R&D approach and three proprietary technology platforms: X-body (4-1BB Engager), LeadsBody (CD3 T Cell Engager), and TOPiKinectics (ADC), for its multi-modal, differentiated pipeline in oncology and autoimmune diseases. It has approximately fourteen drug candidates across oncology and autoimmune diseases. Among these, one core product (LBL-024, a pivotal-stage PD-L1 and 4-1BB dual-targeting bispecific antibody) is being evaluated in several cancer indications and across various Proof-of-Concept (POC) studies. The Group generates maximum revenue from the USA.
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