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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.
Equites Property FundJSE:EQU +0.57%77 WACC % is 8.84% as of Aug. 11, 2026, which is 0% above its 10-year median of 8.82. GuruFocus rates JSE:EQU with a GF Score™ of 77/100 and a GF Value™ of R13.45 (Significantly Overvalued). The stock has 12 warning signs investors should review. Among 962 REITs companies, Equites Property Fund ranks worse than 75.05% on this metric.
As of today (2026-08-11), Equites Property Fund's weighted average cost of capital is 8.84%%. Equites Property Fund's ROIC % is 5.74% (calculated using TTM income statement data).
Equites Property Fund 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.
Equites Property Fund (JSE:EQU) 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, Equites Property Fund's weighted average cost of capital is 8.84%%. Equites Property Fund's ROIC % is 5.74% (calculated using TTM income statement data).
Equites Property Fund 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.
* 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 - Industrial subindustry, Equites Property Fund'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.
Equites Property Fund WACC % vs REITs Industry
For the REITs industry and Real Estate sector, Equites Property Fund's WACC % distribution charts can be found below:
* The bar in red indicates where Equites Property Fund'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, Equites Property Fund's market capitalization (E) is R15446.071 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, Equites Property Fund's latest one-year semi-annual average Book Value of Debt (D) is R10601.5257 Mil.
a) weight of equity = E / (E + D) = 15446.071 / (15446.071 + 10601.5257) = 0.593
b) weight of debt = D / (E + D) = 10601.5257 / (15446.071 + 10601.5257) = 0.407
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. Equites Property Fund's beta is 0.3093.
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% + 0.3093 * 6% = 10.5558%
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, Equites Property Fund's interest expense (positive number) was R679.559 Mil. Its total Book Value of Debt (D) is R10601.5257 Mil.
Cost of Debt = 679.559 / 10601.5257 = 6.41%.
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 = 18.668 / 2045.873 = 0.91%.
Equites Property Fund'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)
=
0.593
*
10.5558%
+
0.407
*
6.41%
*
(1 - 0.91%)
=
8.84%
* 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.
Equites Property Fund (JSE:EQU) has a WACC % of 8.84% as of Aug. 11, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Equites Property Fund and its competitors. This is near median its historical median of 8.82. Over the past decade, Equites Property Fund's WACC % has ranged from 8.21 to 14.52. According to the industry distribution chart, Equites Property Fund ranks #722 out of 962 companies in the REITs industry, placing it in the top 75.1%.
Is Equites Property Fund's WACC % too high?
Equites Property Fund's current WACC % of 8.84% is near median its 10-year median of 8.82. Over the past 10 years, this metric has ranged from a low of 8.21 to a high of 14.52. The REITs industry median WACC % is 6.65. Equites Property Fund's value of 8.84% is 32.9% above this industry median. Based on the distribution chart, Equites Property Fund ranks #722 out of 962 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Equites Property Fund has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Equites Property Fund's WACC % compare to PLD and PSA?
According to the REITs industry distribution chart, Equites Property Fund ranks #722 out of 962 companies for WACC %. This places Equites Property Fund in the lower half of its industry. The industry median WACC % is 6.65. Equites Property Fund's value of 8.84% is 32.9% above this benchmark. Historically, Equites Property Fund's own WACC % has ranged from 8.21 to 14.52 over the past decade. While the company's 10-year median is 8.82 vs. the industry median of 6.65, Equites Property Fund 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 6.65, based on 962 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. Equites Property Fund's current WACC % of 8.84% is 32.9% 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 Equites Property Fund and its competitors. For the REITs industry, the median WACC % is 6.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Equites Property Fund's current WACC % is 8.84%, which is near median its own 10-year median of 8.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Equites Property Fund stock overvalued right now?
Based on GuruFocus' analysis, Equites Property Fund (JSE:EQU) is currently considered Significantly Overvalued. The stock's GF Value™ is R13.45, compared to a current price of R17.79 — trading 32.3% above its estimated fair value. The current WACC % is 8.84%, which is near median its 10-year median of 8.82 and 32.9% above the REITs industry median of 6.65. Equites Property Fund's overall GF Score™ is 77/100 with 12 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 Equites Property Fund (JSE:EQU), the current WACC % is 8.84% as of Aug. 11, 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 Equites Property Fund (JSE:EQU) Overvalued in 2026?
Based on GuruFocus' analysis, Equites Property Fund stock appears to be overvalued.
The current stock price of R17.79 is trading 32.3% above its estimated GF Value™ of R13.45.
GuruFocus considers Equites Property Fund to be Significantly Overvalued.
Key valuation signals for JSE:EQU:
WACC %: 8.84% (near median its 10-year median of 8.82)
GF Value™: R13.45 vs. price of R17.79 (32.3% above fair value)
Industry Position: 32.9% above the REITs median (#722 of 962)
No single metric tells the full story. See the JSE:EQU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Equites Property Fund Ltd generates rental income from investment in and development of modern logistics facilities. Its business activities include development, acquisition of vacant land and brownfield opportunities, acquisition of tenanted property, property management, and capital management. The Group operates through three reportable segments: SA Industrial, generate maximum revenue, which incorporates all the SA industrial and logistics assets; UK Developer, which relates to the disposal of land and turnkey developments; and Other, which comprises non-property-related activities. The Group has industrial and logistics assets in the Western Cape, Eastern Cape, Gauteng, and KwaZulu-Natal, and one ongoing development site in the UK.
77GF Score
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