Burstone GroupJSE:BTN +0.21%77 WACC % is 9.44% as of Jul. 08, 2026, which is 3% below its 10-year median of 9.78. GuruFocus rates JSE:BTN with a GF Score™ of 77/100 and a GF Value™ of R9.66 (Fairly Valued). The stock has 11 warning signs investors should review. Among 966 REITs companies, Burstone Group ranks worse than 78.47% on this metric.
As of today (2026-07-08), Burstone Group's weighted average cost of capital is 9.44%%. Burstone Group's ROIC % is 5.04% (calculated using TTM income statement data).
Burstone Group 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.
Burstone Group (JSE:BTN) 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, Burstone Group's weighted average cost of capital is 9.44%%. Burstone Group's ROIC % is 5.04% (calculated using TTM income statement data).
Burstone Group 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
Burstone Group WACC % Historical Data
* Premium members only.
The historical data trend for Burstone Group'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 REIT - Diversified subindustry, Burstone Group'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.
Burstone Group WACC % vs REITs Industry
For the REITs industry and Real Estate sector, Burstone Group's WACC % distribution charts can be found below:
* The bar in red indicates where Burstone Group'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, Burstone Group's market capitalization (E) is R7572.677 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 Mar. 2026, Burstone Group's latest one-year semi-annual average Book Value of Debt (D) is R7270.058 Mil.
a) weight of equity = E / (E + D) = 7572.677 / (7572.677 + 7270.058) = 0.5102
b) weight of debt = D / (E + D) = 7270.058 / (7572.677 + 7270.058) = 0.4898
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. Burstone Group's beta is 0.4515.
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% + 0.4515 * 6% = 11.704%
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 Mar. 2026, Burstone Group's interest expense (positive number) was R516.973 Mil. Its total Book Value of Debt (D) is R7270.058 Mil.
Cost of Debt = 516.973 / 7270.058 = 7.111%.
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 = 3.92 / 803.836 = 0.49%.
Burstone Group'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)
=
0.5102
*
11.704%
+
0.4898
*
7.111%
*
(1 - 0.49%)
=
9.44%
* 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.
Burstone Group (JSE:BTN) has a WACC % of 9.44% as of Jul. 08, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Burstone Group and its competitors. This is near median its historical median of 9.78. Over the past decade, Burstone Group's WACC % has ranged from 8.63 to 12.26. According to the industry distribution chart, Burstone Group ranks #758 out of 966 companies in the REITs industry, placing it in the top 78.5%.
Is Burstone Group's WACC % too high?
Burstone Group's current WACC % of 9.44% is near median its 10-year median of 9.78. Over the past 10 years, this metric has ranged from a low of 8.63 to a high of 12.26. The REITs industry median WACC % is 6.59. Burstone Group's value of 9.44% is 43.2% above this industry median. Based on the distribution chart, Burstone Group ranks #758 out of 966 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Burstone Group has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Burstone Group's WACC % compare to VICI and WPC?
According to the REITs industry distribution chart, Burstone Group ranks #758 out of 966 companies for WACC %. This places Burstone Group in the lower half of its industry. The industry median WACC % is 6.59. Burstone Group's value of 9.44% is 43.2% above this benchmark. Historically, Burstone Group's own WACC % has ranged from 8.63 to 12.26 over the past decade. While the company's 10-year median is 9.78 vs. the industry median of 6.59, Burstone Group 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 REITs company?
The median WACC % among REITs companies is 6.59, based on 966 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. Burstone Group's current WACC % of 9.44% is 43.2% 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 Burstone Group and its competitors. For the REITs industry, the median WACC % is 6.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Burstone Group's current WACC % is 9.44%, which is near median its own 10-year median of 9.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Burstone Group stock overvalued right now?
Based on GuruFocus' analysis, Burstone Group (JSE:BTN) is currently considered Fairly Valued. The stock's GF Value™ is R9.66, compared to a current price of R9.63 — trading 0.3% below its estimated fair value. The current WACC % is 9.44%, which is near median its 10-year median of 9.78 and 43.2% above the REITs industry median of 6.59. Burstone Group's overall GF Score™ is 77/100 with 11 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 Burstone Group (JSE:BTN), the current WACC % is 9.44% as of Jul. 08, 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 Burstone Group (JSE:BTN) Overvalued in 2026?
Based on GuruFocus' analysis, Burstone Group stock appears to be undervalued.
The current stock price of R9.63 is trading 0.3% below its estimated GF Value™ of R9.66.
GuruFocus considers Burstone Group to be Fairly Valued.
Key valuation signals for JSE:BTN:
WACC %: 9.44% (near median its 10-year median of 9.78)
GF Value™: R9.66 vs. price of R9.63 (0.3% below fair value)
Industry Position: 43.2% above the REITs median (#758 of 966)
No single metric tells the full story. See the JSE:BTN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Burstone Group Ltd is a real estate investment trust operating in South Africa and formed with the purpose of investing in direct real estate. The objective of the fund is to expand its asset base by investing in well-priced income-producing investment properties. The fund invests in the office, industrial, and retail property sectors and is managed and operated by Investec Property, which is a wholly-owned subsidiary of Investec. The fund is well diversified in terms of sectoral spread but mostly concentrates investments in the province of Gauteng from a geographical spread standpoint. The vast majority of the fund's revenue is derived from contracted rental fees.
77GF Score
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