York Timber HoldingsJSE:YRK 48 WACC % is 9.95% as of Jul. 03, 2026, which is 0% above its 10-year median of 9.92. GuruFocus rates JSE:YRK with a GF Score™ of 48/100 and a GF Value™ of R1,015.77 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 292 Forest Products companies, York Timber Holdings ranks worse than 68.84% on this metric.
As of today (2026-07-03), York Timber Holdings's weighted average cost of capital is 9.95%%. York Timber Holdings's ROIC % is 5.76% (calculated using TTM income statement data).
York Timber Holdings 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.
York Timber Holdings (JSE:YRK) 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, York Timber Holdings's weighted average cost of capital is 9.95%%. York Timber Holdings's ROIC % is 5.76% (calculated using TTM income statement data).
York Timber Holdings 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 Lumber & Wood Production subindustry, York Timber Holdings'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.
York Timber Holdings WACC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, York Timber Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where York Timber Holdings'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, York Timber Holdings's market capitalization (E) is R951.997 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, York Timber Holdings's latest one-year semi-annual average Book Value of Debt (D) is R585.277 Mil.
a) weight of equity = E / (E + D) = 951.997 / (951.997 + 585.277) = 0.6193
b) weight of debt = D / (E + D) = 585.277 / (951.997 + 585.277) = 0.3807
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. York Timber Holdings's beta is 0.2960.
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% + 0.2960 * 6% = 10.771%
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, York Timber Holdings's interest expense (positive number) was R69.162 Mil. Its total Book Value of Debt (D) is R585.277 Mil.
Cost of Debt = 69.162 / 585.277 = 11.817%.
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 = 88.149 / 325.379 = 27.09%.
York Timber Holdings'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)
=
0.6193
*
10.771%
+
0.3807
*
11.817%
*
(1 - 27.09%)
=
9.95%
* 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.
York Timber Holdings (JSE:YRK) has a WACC % of 9.95% as of Jul. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on York Timber Holdings and its competitors. This is near median its historical median of 9.92. Over the past decade, York Timber Holdings' WACC % has ranged from 1.23 to 13.79. According to the industry distribution chart, York Timber Holdings ranks #201 out of 292 companies in the Forest Products industry, placing it in the top 68.8%.
Is York Timber Holdings' WACC % too high?
York Timber Holdings' current WACC % of 9.95% is near median its 10-year median of 9.92. Over the past 10 years, this metric has ranged from a low of 1.23 to a high of 13.79. The Forest Products industry median WACC % is 7.40. York Timber Holdings' value of 9.95% is 34.6% above this industry median. Based on the distribution chart, York Timber Holdings ranks #201 out of 292 companies in the Forest Products industry, which is below the industry midpoint. Overall, York Timber Holdings has a GF Score™ of 48/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does York Timber Holdings' WACC % compare to SSD and UFPI?
According to the Forest Products industry distribution chart, York Timber Holdings ranks #201 out of 292 companies for WACC %. This places York Timber Holdings in the lower half of its industry. The industry median WACC % is 7.40. York Timber Holdings' value of 9.95% is 34.6% above this benchmark. Historically, York Timber Holdings' own WACC % has ranged from 1.23 to 13.79 over the past decade. While the company's 10-year median is 9.92 vs. the industry median of 7.40, York Timber Holdings 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 Forest Products company?
The median WACC % among Forest Products companies is 7.40, based on 292 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. York Timber Holdings's current WACC % of 9.95% is 34.6% 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 York Timber Holdings and its competitors. For the Forest Products industry, the median WACC % is 7.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. York Timber Holdings's current WACC % is 9.95%, which is near median its own 10-year median of 9.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is York Timber Holdings stock overvalued right now?
Based on GuruFocus' analysis, York Timber Holdings (JSE:YRK) is currently considered Possible Value Trap. The stock's GF Value™ is R1,015.77, compared to a current price of R2.05 — trading 99.8% below its estimated fair value. The current WACC % is 9.95%, which is near median its 10-year median of 9.92 and 34.6% above the Forest Products industry median of 7.40. York Timber Holdings' overall GF Score™ is 48/100 with 6 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 York Timber Holdings (JSE:YRK), the current WACC % is 9.95% as of Jul. 03, 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 York Timber Holdings (JSE:YRK) Overvalued in 2026?
Based on GuruFocus' analysis, York Timber Holdings stock appears to be undervalued.
The current stock price of R2.05 is trading 99.8% below its estimated GF Value™ of R1,015.77.
GuruFocus considers York Timber Holdings to be Possible Value Trap.
Key valuation signals for JSE:YRK:
WACC %: 9.95% (near median its 10-year median of 9.92)
GF Value™: R1,015.77 vs. price of R2.05 (99.8% below fair value)
Industry Position: 34.6% above the Forest Products median (#201 of 292)
No single metric tells the full story. See the JSE:YRK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
York Timber Holdings Ltd is a South African investment holding company with subsidiaries spanning the entire forestry value chain. It manages plantations, sawmills, and a plywood plant, supplying timber products domestically as well as across SADC and international markets. The Group also operates commercial farms producing avocados, macadamias, and citrus fruits. Its key segments are Processing Plants (sawmilling and plywood), Forestry and Fleet (plantations and log transport), Wholesale (timber distribution), and Agriculture (orchards and a packing facility in Mpumalanga). The majority of revenue comes from processing. The company operates in South Africa, SADC, and international (non-SADC) markets, with the majority of revenue generated in South Africa.
48GF Score
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