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Dis-Chem PharmaciesJSE:DCP -0.09%87 WACC % is 11.16% as of Jul. 21, 2026, which is 17% below its 10-year median of 13.51. GuruFocus rates JSE:DCP with a GF Score™ of 87/100 and a GF Value™ of R38.26 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 690 Healthcare Providers & Services companies, Dis-Chem Pharmacies ranks worse than 75.36% on this metric.
As of today (2026-07-21), Dis-Chem Pharmacies's weighted average cost of capital is 11.16%%. Dis-Chem Pharmacies's ROIC % is -11.50% (calculated using TTM income statement data).
Dis-Chem Pharmacies 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.
Dis-Chem Pharmacies (JSE:DCP) 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, Dis-Chem Pharmacies's weighted average cost of capital is 11.16%%. Dis-Chem Pharmacies's ROIC % is -11.50% (calculated using TTM income statement data).
Dis-Chem Pharmacies 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
Dis-Chem Pharmacies WACC % Historical Data
* Premium members only.
The historical data trend for Dis-Chem Pharmacies'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 Pharmaceutical Retailers subindustry, Dis-Chem Pharmacies'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.
Dis-Chem Pharmacies WACC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Dis-Chem Pharmacies's WACC % distribution charts can be found below:
* The bar in red indicates where Dis-Chem Pharmacies'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, Dis-Chem Pharmacies's market capitalization (E) is R27532.485 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 Feb. 2026, Dis-Chem Pharmacies's latest one-year semi-annual average Book Value of Debt (D) is R6106.4247 Mil.
a) weight of equity = E / (E + D) = 27532.485 / (27532.485 + 6106.4247) = 0.8185
b) weight of debt = D / (E + D) = 6106.4247 / (27532.485 + 6106.4247) = 0.1815
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 8.7%. 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. Dis-Chem Pharmacies's beta is 0.5732.
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 = 8.7% + 0.5732 * 6% = 12.1392%
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 Feb. 2026, Dis-Chem Pharmacies's interest expense (positive number) was R553.975 Mil. Its total Book Value of Debt (D) is R6106.4247 Mil.
Cost of Debt = 553.975 / 6106.4247 = 9.072%.
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 = 359.107 / 1394.725 = 25.75%.
Dis-Chem Pharmacies'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)
=
0.8185
*
12.1392%
+
0.1815
*
9.072%
*
(1 - 25.75%)
=
11.16%
* 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.
Dis-Chem Pharmacies (JSE:DCP) has a WACC % of 11.16% as of Jul. 21, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Dis-Chem Pharmacies and its competitors. This is 17% below median its historical median of 13.51. Over the past decade, Dis-Chem Pharmacies' WACC % has ranged from 8.67 to 14.31. According to the industry distribution chart, Dis-Chem Pharmacies ranks #520 out of 690 companies in the Healthcare Providers & Services industry, placing it in the top 75.4%.
Is Dis-Chem Pharmacies' WACC % too high?
Dis-Chem Pharmacies' current WACC % of 11.16% is 17% below median its 10-year median of 13.51. Over the past 10 years, this metric has ranged from a low of 8.67 to a high of 14.31. The Healthcare Providers & Services industry median WACC % is 8.52. Dis-Chem Pharmacies' value of 11.16% is 31% above this industry median. Based on the distribution chart, Dis-Chem Pharmacies ranks #520 out of 690 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Dis-Chem Pharmacies has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Dis-Chem Pharmacies' WACC % compare to competitors?
According to the Healthcare Providers & Services industry distribution chart, Dis-Chem Pharmacies ranks #520 out of 690 companies for WACC %. This places Dis-Chem Pharmacies in the lower half of its industry. The industry median WACC % is 8.52. Dis-Chem Pharmacies' value of 11.16% is 31% above this benchmark. Historically, Dis-Chem Pharmacies' own WACC % has ranged from 8.67 to 14.31 over the past decade. While the company's 10-year median is 13.51 vs. the industry median of 8.52, Dis-Chem Pharmacies 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 Healthcare Providers & Services company?
The median WACC % among Healthcare Providers & Services companies is 8.52, based on 690 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. Dis-Chem Pharmacies's current WACC % of 11.16% is 31% 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 Dis-Chem Pharmacies and its competitors. For the Healthcare Providers & Services industry, the median WACC % is 8.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dis-Chem Pharmacies's current WACC % is 11.16%, which is 17% below median its own 10-year median of 13.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dis-Chem Pharmacies stock overvalued right now?
Based on GuruFocus' analysis, Dis-Chem Pharmacies (JSE:DCP) is currently considered Modestly Undervalued. The stock's GF Value™ is R38.26, compared to a current price of R32.16 — trading 15.9% below its estimated fair value. The current WACC % is 11.16%, which is 17% below median its 10-year median of 13.51 and 31% above the Healthcare Providers & Services industry median of 8.52. Dis-Chem Pharmacies' overall GF Score™ is 87/100 with 3 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 Dis-Chem Pharmacies (JSE:DCP), the current WACC % is 11.16% as of Jul. 21, 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 Dis-Chem Pharmacies (JSE:DCP) Overvalued in 2026?
Based on GuruFocus' analysis, Dis-Chem Pharmacies stock appears to be undervalued.
The current stock price of R32.16 is trading 15.9% below its estimated GF Value™ of R38.26.
GuruFocus considers Dis-Chem Pharmacies to be Modestly Undervalued.
Key valuation signals for JSE:DCP:
WACC %: 11.16% (17% below median its 10-year median of 13.51)
GF Value™: R38.26 vs. price of R32.16 (15.9% below fair value)
Industry Position: 31% above the Healthcare Providers & Services median (#520 of 690)
No single metric tells the full story. See the JSE:DCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dis-Chem Pharmacies Ltd is a pharmaceutical company based in South Africa. Its product portfolio includes personal care products, beauty products, healthcare and nutrition products, and dispensary and baby care products. The operating segments of the group are Retail and Wholesale. It derives maximum revenue from the Retail segment, which includes company stores, retailers of pharmaceuticals and a variety of health and beauty products, as well as pharma-logistic services and oncology and retailers of pharmaceutical products. The Wholesale segment consists of the CJ wholesale and company distribution businesses, wholesalers of pharmaceuticals, and a variety of health and beauty products. Geographically, the group carries out its business operations principally in South Africa.
87GF Score
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