NICO HoldingsMSW:NICO -0.26%57 WACC % is 10.44% as of Jun. 27, 2026, which is 63% below its 10-year median of 28.32. GuruFocus rates MSW:NICO with a GF Score™ of 57/100 and a GF Value™ of MWK728.99 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 516 Insurance companies, NICO Holdings ranks worse than 78.29% on this metric.
As of today (2026-06-27), NICO Holdings's weighted average cost of capital is 10.44%%. NICO Holdings's ROIC % is 0.00% (calculated using TTM income statement data).
NICO Holdings 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.
NICO Holdings (MSW:NICO) 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, NICO Holdings's weighted average cost of capital is 10.44%%. NICO Holdings's ROIC % is 0.00% (calculated using TTM income statement data).
NICO Holdings 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.
Related Terms
NICO Holdings WACC % Historical Data
* Premium members only.
The historical data trend for NICO Holdings'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.
NICO Holdings WACC % Chart
NICO Holdings Annual Data
Trend
Dec20
Dec21
Dec22
Dec24
Dec25
WACC %
0.00
28.32
41.02
0.00
10.23
NICO Holdings Semi-Annual Data
Dec20
Dec21
Dec22
Dec24
Dec25
WACC %
0.00
28.32
41.02
0.00
10.23
MSW:NICO vs BRK.A, AIG, HIG: WACC % Comparison
For the Insurance - Diversified subindustry, NICO Holdings'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.
NICO Holdings WACC % vs Insurance Industry
For the Insurance industry and Financial Services sector, NICO Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where NICO Holdings'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, NICO Holdings's market capitalization (E) is MWK1662576.216 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, NICO Holdings's latest one-year annual average Book Value of Debt (D) is MWK55026 Mil.
a) weight of equity = E / (E + D) = 1662576.216 / (1662576.216 + 55026) = 0.968
b) weight of debt = D / (E + D) = 55026 / (1662576.216 + 55026) = 0.032
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 4.376%. 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. NICO Holdings'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 = 4.376% + 1 * 6% = 10.376%
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, NICO Holdings's interest expense (positive number) was MWK9879 Mil. Its total Book Value of Debt (D) is MWK55026 Mil.
Cost of Debt = 9879 / 55026 = 17.9533%.
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 = 147880 / 471388 = 31.37%.
NICO Holdings'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)
=
0.968
*
10.376%
+
0.032
*
17.9533%
*
(1 - 31.37%)
=
10.44%
* 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.
NICO Holdings (MSW:NICO) has a WACC % of 10.44% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on NICO Holdings and its competitors. This is 63% below median its historical median of 28.32. Over the past decade, NICO Holdings' WACC % has ranged from 10.23 to 41.02. According to the industry distribution chart, NICO Holdings ranks #404 out of 516 companies in the Insurance industry, placing it in the top 78.3%.
Is NICO Holdings' WACC % too high?
NICO Holdings' current WACC % of 10.44% is 63% below median its 10-year median of 28.32. Over the past 10 years, this metric has ranged from a low of 10.23 to a high of 41.02. The Insurance industry median WACC % is 9.17. NICO Holdings' value of 10.44% is 13.8% above this industry median. Based on the distribution chart, NICO Holdings ranks #404 out of 516 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, NICO Holdings has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NICO Holdings' WACC % compare to BRK.A and AIG?
According to the Insurance industry distribution chart, NICO Holdings ranks #404 out of 516 companies for WACC %. This places NICO Holdings in the lower half of its industry. The industry median WACC % is 9.17. NICO Holdings' value of 10.44% is 13.8% above this benchmark. Historically, NICO Holdings' own WACC % has ranged from 10.23 to 41.02 over the past decade. While the company's 10-year median is 28.32 vs. the industry median of 9.17, NICO Holdings 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 Insurance company?
The median WACC % among Insurance companies is 9.17, based on 516 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. NICO Holdings's current WACC % of 10.44% is 13.8% 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 NICO Holdings and its competitors. For the Insurance industry, the median WACC % is 9.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NICO Holdings's current WACC % is 10.44%, which is 63% below median its own 10-year median of 28.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NICO Holdings stock overvalued right now?
Based on GuruFocus' analysis, NICO Holdings (MSW:NICO) is currently considered Significantly Overvalued. The stock's GF Value™ is MWK728.99, compared to a current price of MWK1,593.97 — trading 118.7% above its estimated fair value. The current WACC % is 10.44%, which is 63% below median its 10-year median of 28.32 and 13.8% above the Insurance industry median of 9.17. NICO Holdings' overall GF Score™ is 57/100 with 2 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 NICO Holdings (MSW:NICO), the current WACC % is 10.44% as of Jun. 27, 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 NICO Holdings (MSW:NICO) Overvalued in 2026?
Based on GuruFocus' analysis, NICO Holdings stock appears to be overvalued.
The current stock price of MWK1,593.97 is trading 118.7% above its estimated GF Value™ of MWK728.99.
GuruFocus considers NICO Holdings to be Significantly Overvalued.
Key valuation signals for MSW:NICO:
WACC %: 10.44% (63% below median its 10-year median of 28.32)
GF Value™: MWK728.99 vs. price of MWK1,593.97 (118.7% above fair value)
Industry Position: 13.8% above the Insurance median (#404 of 516)
No single metric tells the full story. See the MSW:NICO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NICO Holdings PLC is a Malawi-based financial service company that operates in diversified business. Its segments include Life Insurance and Pension, General Insurance business, Banking business, Investment Holding, Asset Management, and Information Technology. Its general insurance segment offers personal and commercial insurance covering motor vehicle, building, road construction, liability, engineering, professional indemnity, marine hull & cargo, fire, and personal accidents throughout Malawi, Zambia, Tanzania, and Uganda. In contrast, life insurance and pension products including Endowment Assurance are offered in Malawi and Mozambique. The majority of the revenue is earned from the Insurance sector. while its Asset Management and Banking segments only operate in Malawi.
57GF Score
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