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As of today (2026-07-27), The Pakistan Credit Rating Agency's weighted average cost of capital is 10.64%%. The Pakistan Credit Rating Agency's ROIC % is 0.00% (calculated using TTM income statement data).
The Pakistan Credit Rating Agency earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*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.
The Pakistan Credit Rating Agency (KAR:GEMPACRA) 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, The Pakistan Credit Rating Agency's weighted average cost of capital is 10.64%%. The Pakistan Credit Rating Agency's ROIC % is 0.00% (calculated using TTM income statement data).
The Pakistan Credit Rating Agency earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*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 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 annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
Related Terms
The Pakistan Credit Rating Agency WACC % Historical Data
* 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.
The Pakistan Credit Rating Agency WACC % Chart
The Pakistan Credit Rating Agency Annual Data
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WACC %
The Pakistan Credit Rating Agency Semi-Annual Data
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KAR:GEMPACRA vs MS, GS, SCHW: WACC % Comparison
For the Capital Markets subindustry, The Pakistan Credit Rating Agency'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.
The Pakistan Credit Rating Agency WACC % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, The Pakistan Credit Rating Agency's WACC % distribution charts can be found below:
* The bar in red indicates where The Pakistan Credit Rating Agency's WACC % falls into.
The Pakistan Credit Rating Agency WACC % Calculation
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.
The Pakistan Credit Rating Agency (KAR:GEMPACRA) has a WACC % of 10.64% as of Jul. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on The Pakistan Credit Rating Agency and its competitors. According to the industry distribution chart, The Pakistan Credit Rating Agency ranks #472 out of 828 companies in the Capital Markets industry, placing it in the top 57%.
Is The Pakistan Credit Rating Agency's WACC % too high?
The Pakistan Credit Rating Agency's current WACC % is 10.64%. The Capital Markets industry median WACC % is 9.34. The Pakistan Credit Rating Agency's value of 10.64% is 14% above this industry median. Based on the distribution chart, The Pakistan Credit Rating Agency ranks #472 out of 828 companies in the Capital Markets industry, which is below the industry midpoint. Overall, The Pakistan Credit Rating Agency has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does The Pakistan Credit Rating Agency's WACC % compare to MS and GS?
According to the Capital Markets industry distribution chart, The Pakistan Credit Rating Agency ranks #472 out of 828 companies for WACC %. This places The Pakistan Credit Rating Agency in the lower half of its industry. The industry median WACC % is 9.34. The Pakistan Credit Rating Agency's value of 10.64% is 14% above this benchmark. 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 Capital Markets company?
The median WACC % among Capital Markets companies is 9.34, based on 828 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. The Pakistan Credit Rating Agency's current WACC % of 10.64% is 14% 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 The Pakistan Credit Rating Agency and its competitors. For the Capital Markets industry, the median WACC % is 9.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Pakistan Credit Rating Agency's current WACC % is 10.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Pakistan Credit Rating Agency stock overvalued right now?
The Pakistan Credit Rating Agency (KAR:GEMPACRA) has a current WACC % of 10.64%. The current WACC % is 10.64% and 14% above the Capital Markets industry median of 9.34. The Pakistan Credit Rating Agency's overall GF Score™ is 21/100 with 2 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 The Pakistan Credit Rating Agency (KAR:GEMPACRA), the current WACC % is 10.64% as of Jul. 27, 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.
The Pakistan Credit Rating Agency Business Description
The Pakistan Credit Rating Agency Ltd provides credit rating services to evaluate the capacity and willingness of entities to meet their financial obligations. It offers independent assessments of credit risk for various debt instruments and entities. The company's ratings help investors make informed decisions by measuring creditworthiness. Its rating services include Entity rating, Instrument rating, Vendor assessment, and Fund rating. The agency generates revenue through fees charged for conducting credit ratings. It operates predominantly within Pakistan and is recognized by key regulatory bodies.
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