WESCO InternationalMEX:WCC 84 WACC % is 4.98% as of Jun. 30, 2026, which is 52% below its 10-year median of 10.42. GuruFocus rates MEX:WCC with a GF Score™ of 84/100 and a GF Value™ of MXN3,149.96. The stock has 8 warning signs investors should review. Among 158 Industrial Distribution companies, WESCO International ranks worse than 95.57% on this metric.
As of today (2026-06-30), WESCO International's weighted average cost of capital is 4.98%%. WESCO International's ROIC % is 7.93% (calculated using TTM income statement data).
WESCO International 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.
WESCO International (MEX:WCC) 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, WESCO International's weighted average cost of capital is 4.98%%. WESCO International's ROIC % is 7.93% (calculated using TTM income statement data).
WESCO International 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
WESCO International WACC % Historical Data
* Premium members only.
The historical data trend for WESCO International'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 Industrial Distribution subindustry, WESCO 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.
WESCO International WACC % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, WESCO International's WACC % distribution charts can be found below:
* The bar in red indicates where WESCO 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, WESCO International's market capitalization (E) is MXN293062.697 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, WESCO International's latest one-year quarterly average Book Value of Debt (D) is MXN118747.1048 Mil.
a) weight of equity = E / (E + D) = 293062.697 / (293062.697 + 118747.1048) = 0.7116
b) weight of debt = D / (E + D) = 118747.1048 / (293062.697 + 118747.1048) = 0.2884
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 4.382%. 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. WESCO International's beta is 0.1254.
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 = 4.382% + 0.1254 * 6% = 5.1344%
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, WESCO International's interest expense (positive number) was MXN7262.689 Mil. Its total Book Value of Debt (D) is MXN118747.1048 Mil.
Cost of Debt = 7262.689 / 118747.1048 = 6.1161%.
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 = 4040.078 / 16467.094 = 24.53%.
WESCO 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)
=
0.7116
*
5.1344%
+
0.2884
*
6.1161%
*
(1 - 24.53%)
=
4.98%
* 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.
WESCO International (MEX:WCC) has a WACC % of 4.98% 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 WESCO International and its competitors. This is 52% below median its historical median of 10.42. Over the past decade, WESCO International's WACC % has ranged from 8.67 to 13.42. According to the industry distribution chart, WESCO International ranks #151 out of 158 companies in the Industrial Distribution industry, placing it in the top 95.6%.
Is WESCO International's WACC % too high?
WESCO International's current WACC % of 4.98% is 52% below median its 10-year median of 10.42. Over the past 10 years, this metric has ranged from a low of 8.67 to a high of 13.42. The Industrial Distribution industry median WACC % is 6.88. WESCO International's value of 4.98% is 27.6% below this industry median. Based on the distribution chart, WESCO International ranks #151 out of 158 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, WESCO International has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does WESCO International's WACC % compare to WSO and QXO?
According to the Industrial Distribution industry distribution chart, WESCO International ranks #151 out of 158 companies for WACC %. This places WESCO International in the lower half of its industry. The industry median WACC % is 6.88. WESCO International's value of 4.98% is 27.6% below this benchmark. Historically, WESCO International's own WACC % has ranged from 8.67 to 13.42 over the past decade. While the company's 10-year median is 10.42 vs. the industry median of 6.88, WESCO International 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 Distribution company?
The median WACC % among Industrial Distribution companies is 6.88, based on 158 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. WESCO International's current WACC % of 4.98% is 27.6% 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 WESCO International and its competitors. For the Industrial Distribution industry, the median WACC % is 6.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. WESCO International's current WACC % is 4.98%, which is 52% below median its own 10-year median of 10.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is WESCO International stock overvalued right now?
WESCO International (MEX:WCC) has a current WACC % of 4.98%. The stock's GF Value™ is MXN3,149.96, compared to a current price of MXN5,292.21 — trading 68% above its estimated fair value. The current WACC % is 4.98%, which is 52% below median its 10-year median of 10.42 and 27.6% below the Industrial Distribution industry median of 6.88. WESCO International's overall GF Score™ is 84/100 with 8 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 WESCO International (MEX:WCC), the current WACC % is 4.98% 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 WESCO International (MEX:WCC) Overvalued in 2026?
Based on GuruFocus' analysis, WESCO International stock appears to be overvalued.
The current stock price of MXN5,292.21 is trading 68% above its estimated GF Value™ of MXN3,149.96.
Key valuation signals for MEX:WCC:
WACC %: 4.98% (52% below median its 10-year median of 10.42)
GF Value™: MXN3,149.96 vs. price of MXN5,292.21 (68% above fair value)
Industry Position: 27.6% below the Industrial Distribution median (#151 of 158)
No single metric tells the full story. See the MEX:WCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wesco can be traced back to the late 1800s but was officially founded in 1922, acting as the distribution arm of Westinghouse Electric. Throughout the 1900s, Wesco entered and subsequently exited the consumer electronics, transit, bottling, and nuclear plant distribution markets. It was sold to a private equity firm in 1994 and then went public in 1999, and numerous acquisitions have since been made to fill the gaps in Wesco's geographical and product coverage. Today, the firm primarily distributes electrical, networking, security, and utility equipment used in the construction and repair of structures such as offices, data centers, power transmission lines, and manufacturing plants. Wesco has operations around the globe but generates the majority of its revenue in the United States.
84GF Score
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