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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Magic Empire GlobalMEGL 58 WACC % is 12.47% as of Jul. 14, 2026, which is 27% above its 10-year median of 9.81. GuruFocus rates MEGL with a GF Score™ of 58/100 and a GF Value™ of $1.77 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 830 Capital Markets companies, Magic Empire Global ranks worse than 73.01% on this metric.
As of today (2026-07-14), Magic Empire Global's weighted average cost of capital is 12.47%%. Magic Empire Global's ROIC % is -156.78% (calculated using TTM income statement data).
Magic Empire Global 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.
Magic Empire Global (NAS:MEGL) 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, Magic Empire Global's weighted average cost of capital is 12.47%%. Magic Empire Global's ROIC % is -156.78% (calculated using TTM income statement data).
Magic Empire Global 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 semi-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 TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Magic Empire Global WACC % Historical Data
* Premium members only.
The historical data trend for Magic Empire Global'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 Capital Markets subindustry, Magic Empire Global'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.
Magic Empire Global WACC % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Magic Empire Global's WACC % distribution charts can be found below:
* The bar in red indicates where Magic Empire Global'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, Magic Empire Global's market capitalization (E) is $5.924 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 semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Magic Empire Global's latest one-year semi-annual average Book Value of Debt (D) is $0.477 Mil.
a) weight of equity = E / (E + D) = 5.924 / (5.924 + 0.477) = 0.9255
b) weight of debt = D / (E + D) = 0.477 / (5.924 + 0.477) = 0.0745
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 4.587%. 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. Magic Empire Global's beta is 1.4043.
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 = 4.587% + 1.4043 * 6% = 13.0128%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, Magic Empire Global's interest expense (positive number) was $0.027 Mil. Its total Book Value of Debt (D) is $0.477 Mil.
Cost of Debt = 0.027 / 0.477 = 5.6604%.
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 / -1.063 = 0%.
Magic Empire Global'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)
=
0.9255
*
13.0128%
+
0.0745
*
5.6604%
*
(1 - 0%)
=
12.47%
* 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.
Magic Empire Global (MEGL) has a WACC % of 12.47% as of Jul. 14, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Magic Empire Global and its competitors. This is 27% above median its historical median of 9.81. Over the past decade, Magic Empire Global's WACC % has ranged from 2.08 to 19.84. According to the industry distribution chart, Magic Empire Global ranks #606 out of 830 companies in the Capital Markets industry, placing it in the top 73%.
Is Magic Empire Global's WACC % too high?
Magic Empire Global's current WACC % of 12.47% is 27% above median its 10-year median of 9.81. Over the past 10 years, this metric has ranged from a low of 2.08 to a high of 19.84. The Capital Markets industry median WACC % is 9.33. Magic Empire Global's value of 12.47% is 33.7% above this industry median. Based on the distribution chart, Magic Empire Global ranks #606 out of 830 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Magic Empire Global has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magic Empire Global's WACC % compare to ITEX and WAI?
According to the Capital Markets industry distribution chart, Magic Empire Global ranks #606 out of 830 companies for WACC %. This places Magic Empire Global in the lower half of its industry. The industry median WACC % is 9.33. Magic Empire Global's value of 12.47% is 33.7% above this benchmark. Historically, Magic Empire Global's own WACC % has ranged from 2.08 to 19.84 over the past decade. While the company's 10-year median is 9.81 vs. the industry median of 9.33, Magic Empire Global 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 Capital Markets company?
The median WACC % among Capital Markets companies is 9.33, based on 830 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. Magic Empire Global's current WACC % of 12.47% is 33.7% 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 Magic Empire Global and its competitors. For the Capital Markets industry, the median WACC % is 9.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magic Empire Global's current WACC % is 12.47%, which is 27% above median its own 10-year median of 9.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magic Empire Global stock overvalued right now?
Based on GuruFocus' analysis, Magic Empire Global (MEGL) is currently considered Possible Value Trap. The stock's GF Value™ is $1.77, compared to a current price of $1.17 — trading 33.9% below its estimated fair value. The current WACC % is 12.47%, which is 27% above median its 10-year median of 9.81 and 33.7% above the Capital Markets industry median of 9.33. Magic Empire Global's overall GF Score™ is 58/100 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 Magic Empire Global (MEGL), the current WACC % is 12.47% as of Jul. 14, 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 Magic Empire Global (MEGL) Overvalued in 2026?
Based on GuruFocus' analysis, Magic Empire Global stock appears to be undervalued.
The current stock price of $1.17 is trading 33.9% below its estimated GF Value™ of $1.77.
GuruFocus considers Magic Empire Global to be Possible Value Trap.
Key valuation signals for MEGL:
WACC %: 12.47% (27% above median its 10-year median of 9.81)
GF Value™: $1.77 vs. price of $1.17 (33.9% below fair value)
Industry Position: 33.7% above the Capital Markets median (#606 of 830)
No single metric tells the full story. See the MEGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magic Empire Global Ltd is a financial services provider in Hong Kong which principally engage in the provision of corporate finance advisory services and underwriting services. The company's offerings mainly comprise of IPO sponsorship services, Financial advisory and independent financial advisory services, Compliance advisory services, Underwriting services, Corporate service.
58GF Score
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