Krones AGKRNTY 86 WACC % is 7.12% as of Jun. 30, 2026, which is 9% above its 10-year median of 6.55. GuruFocus rates KRNTY with a GF Score™ of 86/100 and a GF Value™ of $85.64 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 3,086 Industrial Products companies, Krones AG ranks better than 50.19% on this metric.
As of today (2026-06-30), Krones AG's weighted average cost of capital is 7.12%%. Krones AG's ROIC % is 7.21% (calculated using TTM income statement data).
Krones AG 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Krones AG (OTCPK:KRNTY) 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, Krones AG's weighted average cost of capital is 7.12%%. Krones AG's ROIC % is 7.21% (calculated using TTM income statement data).
Krones AG 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.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year quarterly 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 quarterly average debt to get the simplified cost of debt.
Related Terms
Krones AG WACC % Historical Data
* Premium members only.
The historical data trend for Krones AG'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 Specialty Industrial Machinery subindustry, Krones AG'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.
Krones AG WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Krones AG's WACC % distribution charts can be found below:
* The bar in red indicates where Krones AG'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, Krones AG's market capitalization (E) is $4415.717 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 quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Krones AG's latest one-year quarterly average Book Value of Debt (D) is $36.4002 Mil.
a) weight of equity = E / (E + D) = 4415.717 / (4415.717 + 36.4002) = 0.9918
b) weight of debt = D / (E + D) = 36.4002 / (4415.717 + 36.4002) = 0.0082
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 3.0465%. 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. Krones AG's beta is 0.6816.
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 = 3.0465% + 0.6816 * 6% = 7.1361%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Krones AG's interest expense (positive number) was $2.935 Mil. Its total Book Value of Debt (D) is $36.4002 Mil.
Cost of Debt = 2.935 / 36.4002 = 8.0631%.
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 = 142.558 / 482.26 = 29.56%.
Krones AG'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)
=
0.9918
*
7.1361%
+
0.0082
*
8.0631%
*
(1 - 29.56%)
=
7.12%
* 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.
Krones AG (KRNTY) has a WACC % of 7.12% as of Jun. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Krones AG and its competitors. This is near median its historical median of 6.55. Over the past decade, Krones AG's WACC % has ranged from 5.24 to 9.64. According to the industry distribution chart, Krones AG ranks #1537 out of 3086 companies in the Industrial Products industry, placing it in the top 49.8%.
Is Krones AG's WACC % too high?
Krones AG's current WACC % of 7.12% is near median its 10-year median of 6.55. Over the past 10 years, this metric has ranged from a low of 5.24 to a high of 9.64. The Industrial Products industry median WACC % is 9.67. Krones AG's value of 7.12% is 26.3% below this industry median. Based on the distribution chart, Krones AG ranks #1537 out of 3086 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Krones AG has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Krones AG's WACC % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Krones AG ranks #1537 out of 3086 companies for WACC %. This puts Krones AG in the upper half of its industry. The industry median WACC % is 9.67. Krones AG's value of 7.12% is 26.3% below this benchmark. Historically, Krones AG's own WACC % has ranged from 5.24 to 9.64 over the past decade. While the company's 10-year median is 6.55 vs. the industry median of 9.67, Krones AG has consistently been below 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 an Industrial Products company?
The median WACC % among Industrial Products companies is 9.67, based on 3,086 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. Krones AG's current WACC % of 7.12% is 26.3% below 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 Krones AG and its competitors. For the Industrial Products industry, the median WACC % is 9.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Krones AG's current WACC % is 7.12%, which is near median its own 10-year median of 6.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Krones AG stock overvalued right now?
Based on GuruFocus' analysis, Krones AG (KRNTY) is currently considered Modestly Undervalued. The stock's GF Value™ is $85.64, compared to a current price of $69.88 — trading 18.4% below its estimated fair value. The current WACC % is 7.12%, which is near median its 10-year median of 6.55 and 26.3% below the Industrial Products industry median of 9.67. Krones AG's overall GF Score™ is 86/100 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 Krones AG (KRNTY), the current WACC % is 7.12% as of Jun. 30, 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 Krones AG (KRNTY) Overvalued in 2026?
Based on GuruFocus' analysis, Krones AG stock appears to be undervalued.
The current stock price of $69.88 is trading 18.4% below its estimated GF Value™ of $85.64.
GuruFocus considers Krones AG to be Modestly Undervalued.
Key valuation signals for KRNTY:
WACC %: 7.12% (near median its 10-year median of 6.55)
GF Value™: $85.64 vs. price of $69.88 (18.4% below fair value)
Industry Position: 26.3% below the Industrial Products median (#1537 of 3086)
No single metric tells the full story. See the KRNTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Krones AG plans, develops and manufactures machines and complete lines for the fields of process, filling and packaging technology. Its product portfolio is rounded off by information technology, factory planning and products from its subsidiaries, such as intralogistics, valve production etc. The company's reportable segments are: Filling and Packaging Technology, Process Technology, and Intralogistics. The majority of the company's revenue is generated from its Fillings and Packaging segment, which offers machines and lines for filling, labelling, packaging and conveying products, prominently in PET bottles, glass bottles, and cans. Geographically, the company generates a majority of its revenue from North and Central America and the rest from Germany, China, Europe, and other regions.
86GF Score
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