We Buy Cars HoldingJSE:WBC -1.17%18 WACC % is 13.91% as of Jul. 02, 2026, which is 9% below its 10-year median of 15.22. GuruFocus rates JSE:WBC with a GF Score™ of 18/100. Among 1,345 Vehicles & Parts companies, We Buy Cars Holding ranks worse than 89.29% on this metric.
As of today (2026-07-02), We Buy Cars Holding's weighted average cost of capital is 13.91%%. We Buy Cars Holding's ROIC % is 19.81% (calculated using TTM income statement data).
We Buy Cars Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
We Buy Cars Holding (JSE:WBC) 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, We Buy Cars Holding's weighted average cost of capital is 13.91%%. We Buy Cars Holding's ROIC % is 19.81% (calculated using TTM income statement data).
We Buy Cars Holding generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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
We Buy Cars Holding WACC % Historical Data
* Premium members only.
The historical data trend for We Buy Cars Holding'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 Auto & Truck Dealerships subindustry, We Buy Cars Holding'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.
We Buy Cars Holding WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, We Buy Cars Holding's WACC % distribution charts can be found below:
* The bar in red indicates where We Buy Cars Holding'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, We Buy Cars Holding's market capitalization (E) is R14125.292 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, We Buy Cars Holding's latest one-year semi-annual average Book Value of Debt (D) is R1877.1433 Mil.
a) weight of equity = E / (E + D) = 14125.292 / (14125.292 + 1877.1433) = 0.8827
b) weight of debt = D / (E + D) = 1877.1433 / (14125.292 + 1877.1433) = 0.1173
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. We Buy Cars Holding's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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% + 1 * 6% = 14.995%
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, We Buy Cars Holding's interest expense (positive number) was R139.818 Mil. Its total Book Value of Debt (D) is R1877.1433 Mil.
Cost of Debt = 139.818 / 1877.1433 = 7.4484%.
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 = 271.193 / 1198.904 = 22.62%.
We Buy Cars Holding'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)
=
0.8827
*
14.995%
+
0.1173
*
7.4484%
*
(1 - 22.62%)
=
13.91%
* 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.
We Buy Cars Holding (JSE:WBC) has a WACC % of 13.91% 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 We Buy Cars Holding and its competitors. This is near median its historical median of 15.22. Over the past decade, We Buy Cars Holding's WACC % has ranged from 13.92 to 15.26. According to the industry distribution chart, We Buy Cars Holding ranks #1201 out of 1345 companies in the Vehicles & Parts industry, placing it in the top 89.3%.
Is We Buy Cars Holding's WACC % too high?
We Buy Cars Holding's current WACC % of 13.91% is near median its 10-year median of 15.22. Over the past 10 years, this metric has ranged from a low of 13.92 to a high of 15.26. The Vehicles & Parts industry median WACC % is 8.47. We Buy Cars Holding's value of 13.91% is 64.2% above this industry median. Based on the distribution chart, We Buy Cars Holding ranks #1201 out of 1345 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, We Buy Cars Holding has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does We Buy Cars Holding's WACC % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, We Buy Cars Holding ranks #1201 out of 1345 companies for WACC %. This places We Buy Cars Holding in the lower half of its industry. The industry median WACC % is 8.47. We Buy Cars Holding's value of 13.91% is 64.2% above this benchmark. Historically, We Buy Cars Holding's own WACC % has ranged from 13.92 to 15.26 over the past decade. While the company's 10-year median is 15.22 vs. the industry median of 8.47, We Buy Cars Holding 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 Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.47, based on 1,345 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. We Buy Cars Holding's current WACC % of 13.91% is 64.2% 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 We Buy Cars Holding and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. We Buy Cars Holding's current WACC % is 13.91%, which is near median its own 10-year median of 15.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is We Buy Cars Holding stock overvalued right now?
We Buy Cars Holding (JSE:WBC) has a current WACC % of 13.91%. The current WACC % is 13.91%, which is near median its 10-year median of 15.22 and 64.2% above the Vehicles & Parts industry median of 8.47. We Buy Cars Holding's overall GF Score™ is 18/100. 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 We Buy Cars Holding (JSE:WBC), the current WACC % is 13.91% 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.
We Buy Cars Holding Ltd is an automotive retailer focused on buying, reconditioning, and retail sales through both physical supermarkets and its digital platforms. The company's two reportable segments are: i) Buyer, distributor and retailer of pre-owned motor vehicles with the attendant sale of finance and insurance products and other ancillary products. ii) Property rental: Rental of warehouses to group companies. The majority of the company's revenue is derived from the Buyer, distributor and retailer of pre-owned motor vehicles segment.
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