McDermott InternationalMCDBF 30 WACC % is 13.79% as of Jun. 25, 2026, which is 10% above its 10-year median of 12.59. GuruFocus rates MCDBF with a GF Score™ of 30/100. The stock has 1 warning sign investors should review. Among 1,809 Construction companies, McDermott International ranks better than 68.27% on this metric.
As of today (2026-06-25), McDermott International's weighted average cost of capital is 13.79%%. McDermott International's ROIC % is 4.67% (calculated using TTM income statement data).
McDermott International 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.
McDermott International (OTCPK:MCDBF) 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, McDermott International's weighted average cost of capital is 13.79%%. McDermott International's ROIC % is 4.67% (calculated using TTM income statement data).
McDermott International 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.
* 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.
McDermott International WACC % Chart
McDermott International Annual Data
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McDermott International Semi-Annual Data
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MCDBF vs CDNL, ORN, BWMN: WACC % Comparison
For the Engineering & Construction subindustry, McDermott International'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.
McDermott International WACC % vs Construction Industry
For the Construction industry and Industrials sector, McDermott International's WACC % distribution charts can be found below:
* The bar in red indicates where McDermott International'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, McDermott International's market capitalization (E) is $0.000 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 annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, McDermott International's latest one-year annual average Book Value of Debt (D) is $1145.5 Mil.
a) weight of equity = E / (E + D) = 0.000 / (0.000 + 1145.5) = 0
b) weight of debt = D / (E + D) = 1145.5 / (0.000 + 1145.5) = 1
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 4.408%. 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. McDermott International's beta 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.
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 = 4.408% + 1 * 6% = 10.408%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Dec. 2025, McDermott International's interest expense (positive number) was $158 Mil. Its total Book Value of Debt (D) is $1145.5 Mil.
Cost of Debt = 158 / 1145.5 = 13.7931%.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual 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 annual Tax Rate = 87 / -84 = -103.57%, which is less than 0%. Therefore it's set to 0%.
McDermott International'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
*
10.408%
+
1
*
13.7931%
*
(1 - 0%)
=
13.79%
* 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.
McDermott International (MCDBF) has a WACC % of 13.79% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on McDermott International and its competitors. This is 10% above median its historical median of 12.59. Over the past decade, McDermott International's WACC % has ranged from 5.32 to 19.85. According to the industry distribution chart, McDermott International ranks #574 out of 1809 companies in the Construction industry, placing it in the top 31.7%.
Is McDermott International's WACC % too high?
McDermott International's current WACC % of 13.79% is 10% above median its 10-year median of 12.59. Over the past 10 years, this metric has ranged from a low of 5.32 to a high of 19.85. The Construction industry median WACC % is 7.78. McDermott International's value of 13.79% is 77.2% above this industry median. Based on the distribution chart, McDermott International ranks #574 out of 1809 companies in the Construction industry, which is above the industry midpoint. Overall, McDermott International has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does McDermott International's WACC % compare to CDNL and ORN?
According to the Construction industry distribution chart, McDermott International ranks #574 out of 1809 companies for WACC %. This puts McDermott International in the upper half of its industry. The industry median WACC % is 7.78. McDermott International's value of 13.79% is 77.2% above this benchmark. Historically, McDermott International's own WACC % has ranged from 5.32 to 19.85 over the past decade. While the company's 10-year median is 12.59 vs. the industry median of 7.78, McDermott International 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 Construction company?
The median WACC % among Construction companies is 7.78, based on 1,809 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. McDermott International's current WACC % of 13.79% is 77.2% 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 McDermott International and its competitors. For the Construction industry, the median WACC % is 7.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDermott International's current WACC % is 13.79%, which is 10% above median its own 10-year median of 12.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDermott International stock overvalued right now?
McDermott International (MCDBF) has a current WACC % of 13.79%. The current WACC % is 13.79%, which is 10% above median its 10-year median of 12.59 and 77.2% above the Construction industry median of 7.78. McDermott International's overall GF Score™ is 30/100 with 1 warning sign 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 McDermott International (MCDBF), the current WACC % is 13.79% as of Jun. 25, 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.
McDermott International Ltd is a fully integrated provider of engineering, procurement, construction, and installation (EPCI) solutions to the energy industry globally. The company designs and builds infrastructure to transport and process oil and gas, covering offshore, subsea, liquefied natural gas (LNG), and downstream oil and gas projects, including fixed, floating, and subsea production facilities, pipelines, storage systems, and processing plants. It also provides energy transition and sustainable engineering solutions. The company operates through the Low Carbon Solutions, Offshore Middle East, and Subsea and Floating Facilities segments, serving national and other oil and gas companies across energy-producing regions, and generates the majority of its revenue from United States.
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