Trace SOP EOODLTS:0M7W 75 WACC % is 4.6% as of Jul. 06, 2026, which is 46% below its 10-year median of 8.46. GuruFocus rates LTS:0M7W with a GF Score™ of 75/100 and a GF Value™ of лв4.69. The stock has 9 warning signs investors should review. Among 1,805 Construction companies, Trace SOP EOOD ranks worse than 52.52% on this metric.
As of today (2026-07-06), Trace SOP EOOD's weighted average cost of capital is 4.6%%. Trace SOP EOOD's ROIC % is 5.19% (calculated using TTM income statement data).
Trace SOP EOOD 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.
Trace SOP EOOD (LTS:0M7W) 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, Trace SOP EOOD's weighted average cost of capital is 4.6%%. Trace SOP EOOD's ROIC % is 5.19% (calculated using TTM income statement data).
Trace SOP EOOD 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
Trace SOP EOOD WACC % Historical Data
* Premium members only.
The historical data trend for Trace SOP EOOD'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 Engineering & Construction subindustry, Trace SOP EOOD'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.
Trace SOP EOOD WACC % vs Construction Industry
For the Construction industry and Industrials sector, Trace SOP EOOD's WACC % distribution charts can be found below:
* The bar in red indicates where Trace SOP EOOD'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, Trace SOP EOOD's market capitalization (E) is лв86.152 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, Trace SOP EOOD's latest one-year quarterly average Book Value of Debt (D) is лв88.6852 Mil.
a) weight of equity = E / (E + D) = 86.152 / (86.152 + 88.6852) = 0.4928
b) weight of debt = D / (E + D) = 88.6852 / (86.152 + 88.6852) = 0.5072
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 4.465%. 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. Trace SOP EOOD's beta is 0.1647.
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 = 4.465% + 0.1647 * 6% = 5.4532%
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, Trace SOP EOOD's interest expense (positive number) was лв4.281 Mil. Its total Book Value of Debt (D) is лв88.6852 Mil.
Cost of Debt = 4.281 / 88.6852 = 4.8272%.
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 = 2.819 / 12.941 = 21.78%.
Trace SOP EOOD'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)
=
0.4928
*
5.4532%
+
0.5072
*
4.8272%
*
(1 - 21.78%)
=
4.6%
* 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.
Trace SOP EOOD (LTS:0M7W) has a WACC % of 4.6% as of Jul. 06, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Trace SOP EOOD and its competitors. This is 46% below median its historical median of 8.46. Over the past decade, Trace SOP EOOD's WACC % has ranged from 6.75 to 9.52. According to the industry distribution chart, Trace SOP EOOD ranks #948 out of 1805 companies in the Construction industry, placing it in the top 52.5%.
Is Trace SOP EOOD's WACC % too high?
Trace SOP EOOD's current WACC % of 4.6% is 46% below median its 10-year median of 8.46. Over the past 10 years, this metric has ranged from a low of 6.75 to a high of 9.52. The Construction industry median WACC % is 7.67. Trace SOP EOOD's value of 4.6% is 40% below this industry median. Based on the distribution chart, Trace SOP EOOD ranks #948 out of 1805 companies in the Construction industry, which is below the industry midpoint. Overall, Trace SOP EOOD has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Trace SOP EOOD's WACC % compare to PWR and FIX?
According to the Construction industry distribution chart, Trace SOP EOOD ranks #948 out of 1805 companies for WACC %. This places Trace SOP EOOD in the lower half of its industry. The industry median WACC % is 7.67. Trace SOP EOOD's value of 4.6% is 40% below this benchmark. Historically, Trace SOP EOOD's own WACC % has ranged from 6.75 to 9.52 over the past decade. While the company's 10-year median is 8.46 vs. the industry median of 7.67, Trace SOP EOOD 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 a Construction company?
The median WACC % among Construction companies is 7.67, based on 1,805 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. Trace SOP EOOD's current WACC % of 4.6% is 40% 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 Trace SOP EOOD and its competitors. For the Construction industry, the median WACC % is 7.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trace SOP EOOD's current WACC % is 4.6%, which is 46% below median its own 10-year median of 8.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trace SOP EOOD stock overvalued right now?
Trace SOP EOOD (LTS:0M7W) has a current WACC % of 4.6%. The stock's GF Value™ is лв4.69, compared to a current price of лв3.96 — trading 15.7% below its estimated fair value. The current WACC % is 4.6%, which is 46% below median its 10-year median of 8.46 and 40% below the Construction industry median of 7.67. Trace SOP EOOD's overall GF Score™ is 75/100 with 9 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 Trace SOP EOOD (LTS:0M7W), the current WACC % is 4.6% as of Jul. 06, 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 Trace SOP EOOD (LTS:0M7W) Overvalued in 2026?
Based on GuruFocus' analysis, Trace SOP EOOD stock appears to be undervalued.
The current stock price of лв3.96 is trading 15.7% below its estimated GF Value™ of лв4.69.
Key valuation signals for LTS:0M7W:
WACC %: 4.6% (46% below median its 10-year median of 8.46)
GF Value™: лв4.69 vs. price of лв3.96 (15.7% below fair value)
Industry Position: 40% below the Construction median (#948 of 1805)
No single metric tells the full story. See the LTS:0M7W stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Trace SOP EOOD is engaged in construction and related activities. It performs major public projects in the field of infrastructure, environment, public works and hydro-technical construction, energy and building construction.
75GF Score
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