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Kwan Yong HoldingsHKSE:09998 +1.18%63 WACC % is 10.21% as of Aug. 26, 2026, which is 59% above its 10-year median of 6.43. GuruFocus rates HKSE:09998 with a GF Score™ of 63/100 and a GF Value™ of HK$0.36 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,813 Construction companies, Kwan Yong Holdings ranks worse than 69.77% on this metric.
As of today (2026-08-26), Kwan Yong Holdings's weighted average cost of capital is 10.21%%. Kwan Yong Holdings's ROIC % is 14.71% (calculated using TTM income statement data).
Kwan Yong Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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, Kwan Yong Holdings's weighted average cost of capital is 10.21%%. Kwan Yong Holdings's ROIC % is 14.71% (calculated using TTM income statement data).
Kwan Yong Holdings generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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
Kwan Yong Holdings WACC % Historical Data
* Premium members only.
The historical data trend for Kwan Yong 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 Engineering & Construction subindustry, Kwan Yong 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.
Kwan Yong Holdings WACC % vs Construction Industry
For the Construction industry and Industrials sector, Kwan Yong Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Kwan Yong 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, Kwan Yong Holdings's market capitalization (E) is HK$344.000 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, Kwan Yong Holdings's latest one-year semi-annual average Book Value of Debt (D) is HK$18.2553 Mil.
a) weight of equity = E / (E + D) = 344.000 / (344.000 + 18.2553) = 0.9496
b) weight of debt = D / (E + D) = 18.2553 / (344.000 + 18.2553) = 0.0504
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 4.629%. 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. Kwan Yong Holdings's beta is 0.9843.
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 = 4.629% + 0.9843 * 6% = 10.5348%
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, Kwan Yong Holdings's interest expense (positive number) was HK$0.924 Mil. Its total Book Value of Debt (D) is HK$18.2553 Mil.
Cost of Debt = 0.924 / 18.2553 = 5.0615%.
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 = 23.746 / 131.441 = 18.07%.
Kwan Yong 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)
=
0.9496
*
10.5348%
+
0.0504
*
5.0615%
*
(1 - 18.07%)
=
10.21%
* 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.
Kwan Yong Holdings (HKSE:09998) has a WACC % of 10.21% as of Aug. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Kwan Yong Holdings and its competitors. This is 59% above median its historical median of 6.43. Over the past decade, Kwan Yong Holdings' WACC % has ranged from 0.60 to 10.28. According to the industry distribution chart, Kwan Yong Holdings ranks #1265 out of 1813 companies in the Construction industry, placing it in the top 69.8%.
Is Kwan Yong Holdings' WACC % too high?
Kwan Yong Holdings' current WACC % of 10.21% is 59% above median its 10-year median of 6.43. Over the past 10 years, this metric has ranged from a low of 0.60 to a high of 10.28. The Construction industry median WACC % is 7.68. Kwan Yong Holdings' value of 10.21% is 32.9% above this industry median. Based on the distribution chart, Kwan Yong Holdings ranks #1265 out of 1813 companies in the Construction industry, which is below the industry midpoint. Overall, Kwan Yong Holdings has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kwan Yong Holdings' WACC % compare to PWR and FIX?
According to the Construction industry distribution chart, Kwan Yong Holdings ranks #1265 out of 1813 companies for WACC %. This places Kwan Yong Holdings in the lower half of its industry. The industry median WACC % is 7.68. Kwan Yong Holdings' value of 10.21% is 32.9% above this benchmark. Historically, Kwan Yong Holdings' own WACC % has ranged from 0.60 to 10.28 over the past decade. While the company's 10-year median is 6.43 vs. the industry median of 7.68, Kwan Yong 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 Construction company?
The median WACC % among Construction companies is 7.68, based on 1,813 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. Kwan Yong Holdings's current WACC % of 10.21% is 32.9% 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 Kwan Yong Holdings and its competitors. For the Construction industry, the median WACC % is 7.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kwan Yong Holdings's current WACC % is 10.21%, which is 59% above median its own 10-year median of 6.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwan Yong Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kwan Yong Holdings (HKSE:09998) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$0.36, compared to a current price of HK$0.43 — trading 19.4% above its estimated fair value. The current WACC % is 10.21%, which is 59% above median its 10-year median of 6.43 and 32.9% above the Construction industry median of 7.68. Kwan Yong Holdings' overall GF Score™ is 63/100 with 2 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 Kwan Yong Holdings (HKSE:09998), the current WACC % is 10.21% as of Aug. 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 Kwan Yong Holdings (HKSE:09998) Overvalued in 2026?
Based on GuruFocus' analysis, Kwan Yong Holdings stock appears to be overvalued.
The current stock price of HK$0.43 is trading 19.4% above its estimated GF Value™ of HK$0.36.
GuruFocus considers Kwan Yong Holdings to be Modestly Overvalued.
Key valuation signals for HKSE:09998:
WACC %: 10.21% (59% above median its 10-year median of 6.43)
GF Value™: HK$0.36 vs. price of HK$0.43 (19.4% above fair value)
Industry Position: 32.9% above the Construction median (#1265 of 1813)
No single metric tells the full story. See the HKSE:09998 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kwan Yong Holdings Ltd is engaged in the provision of building construction works in Singapore. The company constructs various types of buildings, including institutional buildings such as educational institutions, hospitals and nursing homes; commercial buildings such as office buildings and restaurants; and industrial and residential buildings. The projects of the company include Childcare at Rivervale, Childcare at Punggol Drive, Alexandra Primary School, Ngee Ann Polytechnic, and others. It has three segments: Construction, Property, and Corporate. The majority of its revenue is generated from the Construction segment, which provides general building and construction services. Geographically, the company derives revenue from its customers based in Singapore.
63GF Score
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