EAM Solar ASLTS:0QDW 38 WACC % is 19.28% as of Jul. 11, 2026, which is 258% above its 10-year median of 5.38. GuruFocus rates LTS:0QDW with a GF Score™ of 38/100 and a GF Value™ of kr0.93 (Fairly Valued). The stock has 6 warning signs investors should review. Among 479 Utilities - Independent Power Producers companies, EAM Solar AS ranks better than 98.75% on this metric.
As of today (2026-07-11), EAM Solar AS's weighted average cost of capital is 19.28%%. EAM Solar AS's ROIC % is -3.60% (calculated using TTM income statement data).
EAM Solar AS 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.
EAM Solar AS (LTS:0QDW) 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, EAM Solar AS's weighted average cost of capital is 19.28%%. EAM Solar AS's ROIC % is -3.60% (calculated using TTM income statement data).
EAM Solar AS 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 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
EAM Solar AS WACC % Historical Data
* Premium members only.
The historical data trend for EAM Solar AS'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 Utilities - Renewable subindustry, EAM Solar AS'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.
EAM Solar AS WACC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, EAM Solar AS's WACC % distribution charts can be found below:
* The bar in red indicates where EAM Solar AS'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, EAM Solar AS's market capitalization (E) is kr61.091 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, EAM Solar AS's latest one-year quarterly average Book Value of Debt (D) is kr29.754 Mil.
a) weight of equity = E / (E + D) = 61.091 / (61.091 + 29.754) = 0.6725
b) weight of debt = D / (E + D) = 29.754 / (61.091 + 29.754) = 0.3275
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 4.3299%. 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. EAM Solar AS's beta is 3.3856.
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 = 4.3299% + 3.3856 * 6% = 24.6435%
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, EAM Solar AS's interest expense (positive number) was kr2.563 Mil. Its total Book Value of Debt (D) is kr29.754 Mil.
Cost of Debt = 2.563 / 29.754 = 8.614%.
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 = 0.64 / 15.263 = 4.19%.
EAM Solar AS'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)
=
0.6725
*
24.6435%
+
0.3275
*
8.614%
*
(1 - 4.19%)
=
19.28%
* 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.
EAM Solar AS (LTS:0QDW) has a WACC % of 19.28% as of Jul. 11, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on EAM Solar AS and its competitors. This is 258% above median its historical median of 5.38. According to the industry distribution chart, EAM Solar AS ranks #6 out of 479 companies in the Utilities - Independent Power Producers industry, placing it in the top 1.3%.
Is EAM Solar AS's WACC % too high?
EAM Solar AS's current WACC % of 19.28% is 258% above median its 10-year median of 5.38. The Utilities - Independent Power Producers industry median WACC % is 7.90. EAM Solar AS's value of 19.28% is 144.1% above this industry median. Based on the distribution chart, EAM Solar AS ranks #6 out of 479 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, EAM Solar AS has a GF Score™ of 38/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does EAM Solar AS's WACC % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, EAM Solar AS ranks #6 out of 479 companies for WACC %. This places EAM Solar AS in the top 1% of its industry — outperforming the majority of peers. The industry median WACC % is 7.90. EAM Solar AS's value of 19.28% is 144.1% above this benchmark. While the company's 10-year median is 5.38 vs. the industry median of 7.90, EAM Solar AS 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 an Utilities - Independent Power Producers company?
The median WACC % among Utilities - Independent Power Producers companies is 7.90, based on 479 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. EAM Solar AS's current WACC % of 19.28% is 144.1% 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 EAM Solar AS and its competitors. For the Utilities - Independent Power Producers industry, the median WACC % is 7.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EAM Solar AS's current WACC % is 19.28%, which is 258% above median its own 10-year median of 5.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EAM Solar AS stock overvalued right now?
Based on GuruFocus' analysis, EAM Solar AS (LTS:0QDW) is currently considered Fairly Valued. The stock's GF Value™ is kr0.93, compared to a current price of kr0.88 — trading 4.9% below its estimated fair value. The current WACC % is 19.28%, which is 258% above median its 10-year median of 5.38 and 144.1% above the Utilities - Independent Power Producers industry median of 7.90. EAM Solar AS's overall GF Score™ is 38/100 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 EAM Solar AS (LTS:0QDW), the current WACC % is 19.28% as of Jul. 11, 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 EAM Solar AS (LTS:0QDW) Overvalued in 2026?
Based on GuruFocus' analysis, EAM Solar AS stock appears to be undervalued.
The current stock price of kr0.88 is trading 4.9% below its estimated GF Value™ of kr0.93.
GuruFocus considers EAM Solar AS to be Fairly Valued.
Key valuation signals for LTS:0QDW:
WACC %: 19.28% (258% above median its 10-year median of 5.38)
GF Value™: kr0.93 vs. price of kr0.88 (4.9% below fair value)
Industry Position: 144.1% above the Utilities - Independent Power Producers median (#6 of 479)
No single metric tells the full story. See the LTS:0QDW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EAM Solar AS primary business is to own solar PV power plants and sell electricity under long-term fixed-price sales contracts, and to pursue legal proceedings to restore company values. The Company's primary assets include four solar PV power plants in Italy, in the regions of Apulia and Basilicata in Southern Italy.
38GF Score
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