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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.
Harbor BanksharesHRBK 65 WACC % is 10.99% as of Aug. 03, 2026, which is 27% below its 10-year median of 15.15. GuruFocus rates HRBK with a GF Score™ of 65/100 and a GF Value™ of $17.91 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,541 Banks companies, Harbor Bankshares ranks better than 62.95% on this metric.
As of today (2026-08-03), Harbor Bankshares's weighted average cost of capital is 10.99%%. Harbor Bankshares's ROIC % is 0.00% (calculated using TTM income statement data).
Harbor Bankshares 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.
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, Harbor Bankshares's weighted average cost of capital is 10.99%%. Harbor Bankshares's ROIC % is 0.00% (calculated using TTM income statement data).
Harbor Bankshares 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 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 annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
Related Terms
Harbor Bankshares WACC % Historical Data
* Premium members only.
The historical data trend for Harbor Bankshares'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 Banks - Regional subindustry, Harbor Bankshares'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.
Harbor Bankshares WACC % vs Banks Industry
For the Banks industry and Financial Services sector, Harbor Bankshares's WACC % distribution charts can be found below:
* The bar in red indicates where Harbor Bankshares'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, Harbor Bankshares's market capitalization (E) is $33.847 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 annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Harbor Bankshares's latest one-year annual average Book Value of Debt (D) is $0 Mil.
a) weight of equity = E / (E + D) = 33.847 / (33.847 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (33.847 + 0) = 0
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 4.678%. 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. Harbor Bankshares's beta is 1.0523.
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 = 4.678% + 1.0523 * 6% = 10.9918%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Dec. 2025, Harbor Bankshares's interest expense (positive number) was $3.367 Mil. Its total Book Value of Debt (D) is $0 Mil.
Cost of Debt = 3.367 / 0 = %.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual 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 annual Tax Rate = 0.408 / 1.768 = 23.08%.
Harbor Bankshares'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)
=
1
*
10.9918%
+
0
*
%
*
(1 - 23.08%)
=
10.99%
* 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.
Harbor Bankshares (HRBK) has a WACC % of 10.99% 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 Harbor Bankshares and its competitors. This is 27% below median its historical median of 15.15. According to the industry distribution chart, Harbor Bankshares ranks #571 out of 1541 companies in the Banks industry, placing it in the top 37.1%.
Is Harbor Bankshares' WACC % too high?
Harbor Bankshares' current WACC % of 10.99% is 27% below median its 10-year median of 15.15. The Banks industry median WACC % is 13.15. Harbor Bankshares' value of 10.99% is 16.4% below this industry median. Based on the distribution chart, Harbor Bankshares ranks #571 out of 1541 companies in the Banks industry, which is above the industry midpoint. Overall, Harbor Bankshares has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Harbor Bankshares' WACC % compare to OTTW and PCLB?
According to the Banks industry distribution chart, Harbor Bankshares ranks #571 out of 1541 companies for WACC %. This puts Harbor Bankshares in the upper half of its industry. The industry median WACC % is 13.15. Harbor Bankshares' value of 10.99% is 16.4% below this benchmark. While the company's 10-year median is 15.15 vs. the industry median of 13.15, Harbor Bankshares 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 Banks company?
The median WACC % among Banks companies is 13.15, based on 1,541 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. Harbor Bankshares's current WACC % of 10.99% is 16.4% 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 Harbor Bankshares and its competitors. For the Banks industry, the median WACC % is 13.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Harbor Bankshares's current WACC % is 10.99%, which is 27% below median its own 10-year median of 15.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harbor Bankshares stock overvalued right now?
Based on GuruFocus' analysis, Harbor Bankshares (HRBK) is currently considered Significantly Overvalued. The stock's GF Value™ is $17.91, compared to a current price of $27.80 — trading 55.2% above its estimated fair value. The current WACC % is 10.99%, which is 27% below median its 10-year median of 15.15 and 16.4% below the Banks industry median of 13.15. Harbor Bankshares' overall GF Score™ is 65/100 with 4 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 Harbor Bankshares (HRBK), the current WACC % is 10.99% 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.
Is Harbor Bankshares (HRBK) Overvalued in 2026?
Based on GuruFocus' analysis, Harbor Bankshares stock appears to be overvalued.
The current stock price of $27.80 is trading 55.2% above its estimated GF Value™ of $17.91.
GuruFocus considers Harbor Bankshares to be Significantly Overvalued.
Key valuation signals for HRBK:
WACC %: 10.99% (27% below median its 10-year median of 15.15)
GF Value™: $17.91 vs. price of $27.80 (55.2% above fair value)
Industry Position: 16.4% below the Banks median (#571 of 1541)
No single metric tells the full story. See the HRBK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harbor Bankshares Corp is a bank holding company. The Bank is a commercial bank. The deposits of the Bank are insured up to statutory limits by the Federal Deposit Insurance Corporation (FDIC). The Bank conducts general banking business in locations and mainly serves the Baltimore, Maryland, metropolitan area. It offers checking, savings and time deposits, commercial real estate, personal, home improvement, automobiles, and other installment and term loans. The Bank is also a member of a national ATM network. The retail nature of the Bank allows for diversification of depositors and borrowers, which limits its dependency upon a single or a few customers. Its activities include providing private capital to businesses through loans and principal investments.
65GF Score
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