Home Product Center PCLHPCRF 88 WACC % is 4.34% as of Jul. 01, 2026, which is 42% below its 10-year median of 7.48. GuruFocus rates HPCRF with a GF Score™ of 88/100 and a GF Value™ of $0.27. The stock has 6 warning signs investors should review. Among 1,137 Retail - Cyclical companies, Home Product Center PCL ranks worse than 51.98% on this metric.
As of today (2026-07-01), Home Product Center PCL's weighted average cost of capital is 4.34%%. Home Product Center PCL's ROIC % is 10.63% (calculated using TTM income statement data).
Home Product Center PCL 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.
Home Product Center PCL (OTCPK:HPCRF) 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, Home Product Center PCL's weighted average cost of capital is 4.34%%. Home Product Center PCL's ROIC % is 10.63% (calculated using TTM income statement data).
Home Product Center PCL 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 quarterly 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 quarterly 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.
For the Home Improvement Retail subindustry, Home Product Center PCL'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.
Home Product Center PCL WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Home Product Center PCL's WACC % distribution charts can be found below:
* The bar in red indicates where Home Product Center PCL'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, Home Product Center PCL's market capitalization (E) is $2511.649 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 quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Home Product Center PCL's latest one-year quarterly average Book Value of Debt (D) is $728.7294 Mil.
a) weight of equity = E / (E + D) = 2511.649 / (2511.649 + 728.7294) = 0.7751
b) weight of debt = D / (E + D) = 728.7294 / (2511.649 + 728.7294) = 0.2249
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 4.481%. 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. Home Product Center PCL's beta is 0.0683.
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 = 4.481% + 0.0683 * 6% = 4.8908%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Home Product Center PCL's interest expense (positive number) was $21.954 Mil. Its total Book Value of Debt (D) is $728.7294 Mil.
Cost of Debt = 21.954 / 728.7294 = 3.0126%.
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 = 41.727 / 219.681 = 18.99%.
Home Product Center PCL'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)
=
0.7751
*
4.8908%
+
0.2249
*
3.0126%
*
(1 - 18.99%)
=
4.34%
* 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.
Home Product Center PCL (HPCRF) has a WACC % of 4.34% as of Jul. 01, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Home Product Center PCL and its competitors. This is 42% below median its historical median of 7.48. Over the past decade, Home Product Center PCL's WACC % has ranged from 5.67 to 10.98. According to the industry distribution chart, Home Product Center PCL ranks #591 out of 1137 companies in the Retail - Cyclical industry, placing it in the top 52%.
Is Home Product Center PCL's WACC % too high?
Home Product Center PCL's current WACC % of 4.34% is 42% below median its 10-year median of 7.48. Over the past 10 years, this metric has ranged from a low of 5.67 to a high of 10.98. The Retail - Cyclical industry median WACC % is 7.56. Home Product Center PCL's value of 4.34% is 42.6% below this industry median. Based on the distribution chart, Home Product Center PCL ranks #591 out of 1137 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Home Product Center PCL has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Home Product Center PCL's WACC % compare to HD and LOW?
According to the Retail - Cyclical industry distribution chart, Home Product Center PCL ranks #591 out of 1137 companies for WACC %. This places Home Product Center PCL in the lower half of its industry. The industry median WACC % is 7.56. Home Product Center PCL's value of 4.34% is 42.6% below this benchmark. Historically, Home Product Center PCL's own WACC % has ranged from 5.67 to 10.98 over the past decade. While the company's 10-year median is 7.48 vs. the industry median of 7.56, Home Product Center PCL has consistently been below 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 Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.56, based on 1,137 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. Home Product Center PCL's current WACC % of 4.34% is 42.6% below 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 Home Product Center PCL and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Home Product Center PCL's current WACC % is 4.34%, which is 42% below median its own 10-year median of 7.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Home Product Center PCL stock overvalued right now?
Home Product Center PCL (HPCRF) has a current WACC % of 4.34%. The stock's GF Value™ is $0.27, compared to a current price of $0.20 — trading 26.7% below its estimated fair value. The current WACC % is 4.34%, which is 42% below median its 10-year median of 7.48 and 42.6% below the Retail - Cyclical industry median of 7.56. Home Product Center PCL's overall GF Score™ is 88/100 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 Home Product Center PCL (HPCRF), the current WACC % is 4.34% as of Jul. 01, 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 Home Product Center PCL (HPCRF) Overvalued in 2026?
Based on GuruFocus' analysis, Home Product Center PCL stock appears to be undervalued.
The current stock price of $0.20 is trading 26.7% below its estimated GF Value™ of $0.27.
Key valuation signals for HPCRF:
WACC %: 4.34% (42% below median its 10-year median of 7.48)
GF Value™: $0.27 vs. price of $0.20 (26.7% below fair value)
Industry Position: 42.6% below the Retail - Cyclical median (#591 of 1137)
No single metric tells the full story. See the HPCRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Home Product Center PCL is a Thailand-based company engaged in the sale of home improvement products under the HomePro brand which serves as a One Stop Shopping Home Center. It provides construction, extension, and renovation services in addition to the improvement of buildings, houses, and residences. The company operates in Thailand and Malaysia through its HomePro stores and subsidiaries. Maximum revenue is generated from contracts with customers and specifically through the hard-line product category. The hard-line merchandise category includes tools, paint, home improvement, bathroom and sanitary ware, kitchen, home appliances, and electrical equipment. Geographically, it generates the majority of its revenue from Thailand, followed by Malaysia.
88GF Score
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