African And Overseas EnterprisesJSE:AOO 47 WACC % is 2.64% as of Jul. 02, 2026, which is 72% below its 10-year median of 9.56. GuruFocus rates JSE:AOO with a GF Score™ of 47/100 and a GF Value™ of R16.01 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,137 Retail - Cyclical companies, African And Overseas Enterprises ranks better than 86.37% on this metric.
As of today (2026-07-02), African And Overseas Enterprises's weighted average cost of capital is 2.64%%. African And Overseas Enterprises's ROIC % is -0.98% (calculated using TTM income statement data).
African And Overseas Enterprises 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.
African And Overseas Enterprises (JSE:AOO) 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, African And Overseas Enterprises's weighted average cost of capital is 2.64%%. African And Overseas Enterprises's ROIC % is -0.98% (calculated using TTM income statement data).
African And Overseas Enterprises 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
African And Overseas Enterprises WACC % Historical Data
* 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 Apparel Retail subindustry, African And Overseas Enterprises'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.
African And Overseas Enterprises WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, African And Overseas Enterprises's WACC % distribution charts can be found below:
* The bar in red indicates where African And Overseas Enterprises's WACC % falls into.
African And Overseas Enterprises WACC % Calculation
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, African And Overseas Enterprises's market capitalization (E) is R176.427 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, African And Overseas Enterprises's latest one-year semi-annual average Book Value of Debt (D) is R617.614 Mil.
a) weight of equity = E / (E + D) = 176.427 / (176.427 + 617.614) = 0.2222
b) weight of debt = D / (E + D) = 617.614 / (176.427 + 617.614) = 0.7778
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 8.995%. 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. African And Overseas Enterprises's beta is -0.0117.
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 = 8.995% + -0.0117 * 6% = 8.9248%
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, African And Overseas Enterprises's interest expense (positive number) was R64.019 Mil. Its total Book Value of Debt (D) is R617.614 Mil.
Cost of Debt = 64.019 / 617.614 = 10.3655%.
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 = 14.187 / 15.444 = 91.86%.
* 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.
African And Overseas Enterprises (JSE:AOO) has a WACC % of 2.64% as of Jul. 02, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on African And Overseas Enterprises and its competitors. This is 72% below median its historical median of 9.56. Over the past decade, African And Overseas Enterprises' WACC % has ranged from 2.64 to 13.10. According to the industry distribution chart, African And Overseas Enterprises ranks #155 out of 1137 companies in the Retail - Cyclical industry, placing it in the top 13.6%.
Is African And Overseas Enterprises' WACC % too high?
African And Overseas Enterprises' current WACC % of 2.64% is 72% below median its 10-year median of 9.56. Over the past 10 years, this metric has ranged from a low of 2.64 to a high of 13.10. The Retail - Cyclical industry median WACC % is 7.56. African And Overseas Enterprises' value of 2.64% is 65.1% below this industry median. Based on the distribution chart, African And Overseas Enterprises ranks #155 out of 1137 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, African And Overseas Enterprises has a GF Score™ of 47/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does African And Overseas Enterprises' WACC % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, African And Overseas Enterprises ranks #155 out of 1137 companies for WACC %. This places African And Overseas Enterprises in the top 14% of its industry — outperforming the majority of peers. The industry median WACC % is 7.56. African And Overseas Enterprises' value of 2.64% is 65.1% below this benchmark. Historically, African And Overseas Enterprises' own WACC % has ranged from 2.64 to 13.10 over the past decade. While the company's 10-year median is 9.56 vs. the industry median of 7.56, African And Overseas Enterprises 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. African And Overseas Enterprises's current WACC % of 2.64% is 65.1% 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 African And Overseas Enterprises 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. African And Overseas Enterprises's current WACC % is 2.64%, which is 72% below median its own 10-year median of 9.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African And Overseas Enterprises stock overvalued right now?
Based on GuruFocus' analysis, African And Overseas Enterprises (JSE:AOO) is currently considered Modestly Overvalued. The stock's GF Value™ is R16.01, compared to a current price of R20.00 — trading 24.9% above its estimated fair value. The current WACC % is 2.64%, which is 72% below median its 10-year median of 9.56 and 65.1% below the Retail - Cyclical industry median of 7.56. African And Overseas Enterprises' overall GF Score™ is 47/100 with 8 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 African And Overseas Enterprises (JSE:AOO), the current WACC % is 2.64% as of Jul. 02, 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 African And Overseas Enterprises (JSE:AOO) Overvalued in 2026?
Based on GuruFocus' analysis, African And Overseas Enterprises stock appears to be overvalued.
The current stock price of R20.00 is trading 24.9% above its estimated GF Value™ of R16.01.
GuruFocus considers African And Overseas Enterprises to be Modestly Overvalued.
Key valuation signals for JSE:AOO:
WACC %: 2.64% (72% below median its 10-year median of 9.56)
GF Value™: R16.01 vs. price of R20.00 (24.9% above fair value)
Industry Position: 65.1% below the Retail - Cyclical median (#155 of 1137)
No single metric tells the full story. See the JSE:AOO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
African And Overseas Enterprises Business Description
African And Overseas Enterprises Ltd is an investment holding company. The company operates in six segments: Retail division comprises the retailing of fashion apparel through Queenspark stores in South Africa. Property division comprises of the group's property portfolio based in Cape Town which includes both investment and owner-occupied properties.; Water infrastructure segment comprises an indirect investment made in a private water and wastewater utility group operating in the South African provinces, Media and broadcasting comprises the provision of media and satellite equipment and services through Telemedia, and the Group Services division manages the corporate responsibility and includes corporate costs and Technology segment. The Retail Segment derives maximum revenue.
47GF Score
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