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NAPCO Security TechnologiesNSSC -0.07%99 WACC % is 23% as of Aug. 19, 2026, which is 172% above its 10-year median of 8.46. GuruFocus rates NSSC with a GF Score™ of 99/100 and a GF Value™ of $43.03 (Modestly Undervalued). Among 1,114 Business Services companies, NAPCO Security Technologies ranks worse than 99.1% on this metric.
As of today (2026-08-19), NAPCO Security Technologies's weighted average cost of capital is 23%%. NAPCO Security Technologies's ROIC % is 65.25% (calculated using TTM income statement data).
NAPCO Security Technologies 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.
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, NAPCO Security Technologies's weighted average cost of capital is 23%%. NAPCO Security Technologies's ROIC % is 65.25% (calculated using TTM income statement data).
NAPCO Security Technologies 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
NAPCO Security Technologies WACC % Historical Data
* 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 Security & Protection Services subindustry, NAPCO Security Technologies'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.
NAPCO Security Technologies WACC % vs Business Services Industry
For the Business Services industry and Industrials sector, NAPCO Security Technologies's WACC % distribution charts can be found below:
* The bar in red indicates where NAPCO Security Technologies'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, NAPCO Security Technologies's market capitalization (E) is $1350.489 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, NAPCO Security Technologies's latest one-year quarterly average Book Value of Debt (D) is $5.2956 Mil.
a) weight of equity = E / (E + D) = 1350.489 / (1350.489 + 5.2956) = 0.9961
b) weight of debt = D / (E + D) = 5.2956 / (1350.489 + 5.2956) = 0.0039
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 4.647%. 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. NAPCO Security Technologies's beta is 3.0746.
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 = 4.647% + 3.0746 * 6% = 23.0946%
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, NAPCO Security Technologies's interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $5.2956 Mil.
Cost of Debt = -0 / 5.2956 = 0%.
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 = 6.249 / 43.141 = 14.49%.
* 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.
NAPCO Security Technologies (NSSC) has a WACC % of 23% as of Aug. 19, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on NAPCO Security Technologies and its competitors. This is 172% above median its historical median of 8.46. Over the past decade, NAPCO Security Technologies' WACC % has ranged from 4.20 to 23.05. According to the industry distribution chart, NAPCO Security Technologies ranks #1104 out of 1114 companies in the Business Services industry, placing it in the top 99.1%.
Is NAPCO Security Technologies' WACC % too high?
NAPCO Security Technologies' current WACC % of 23% is 172% above median its 10-year median of 8.46. Over the past 10 years, this metric has ranged from a low of 4.20 to a high of 23.05. The Business Services industry median WACC % is 7.15. NAPCO Security Technologies' value of 23% is 221.9% above this industry median. Based on the distribution chart, NAPCO Security Technologies ranks #1104 out of 1114 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, NAPCO Security Technologies has a GF Score™ of 99/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does NAPCO Security Technologies' WACC % compare to EVLV and MG?
According to the Business Services industry distribution chart, NAPCO Security Technologies ranks #1104 out of 1114 companies for WACC %. This places NAPCO Security Technologies in the lower half of its industry. The industry median WACC % is 7.15. NAPCO Security Technologies' value of 23% is 221.9% above this benchmark. Historically, NAPCO Security Technologies' own WACC % has ranged from 4.20 to 23.05 over the past decade. While the company's 10-year median is 8.46 vs. the industry median of 7.15, NAPCO Security Technologies 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 Business Services company?
The median WACC % among Business Services companies is 7.15, based on 1,114 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. NAPCO Security Technologies's current WACC % of 23% is 221.9% 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 NAPCO Security Technologies and its competitors. For the Business Services industry, the median WACC % is 7.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NAPCO Security Technologies's current WACC % is 23%, which is 172% above median its own 10-year median of 8.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NAPCO Security Technologies stock overvalued right now?
Based on GuruFocus' analysis, NAPCO Security Technologies (NSSC) is currently considered Modestly Undervalued. The stock's GF Value™ is $43.03, compared to a current price of $37.80 — trading 12.2% below its estimated fair value. The current WACC % is 23%, which is 172% above median its 10-year median of 8.46 and 221.9% above the Business Services industry median of 7.15. NAPCO Security Technologies' overall GF Score™ is 99/100. 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 NAPCO Security Technologies (NSSC), the current WACC % is 23% as of Aug. 19, 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 NAPCO Security Technologies (NSSC) Overvalued in 2026?
Based on GuruFocus' analysis, NAPCO Security Technologies stock appears to be undervalued.
The current stock price of $37.80 is trading 12.2% below its estimated GF Value™ of $43.03.
GuruFocus considers NAPCO Security Technologies to be Modestly Undervalued.
Key valuation signals for NSSC:
WACC %: 23% (172% above median its 10-year median of 8.46)
GF Value™: $43.03 vs. price of $37.80 (12.2% below fair value)
Industry Position: 221.9% above the Business Services median (#1104 of 1114)
No single metric tells the full story. See the NSSC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NAPCO Security Technologies Inc manufactures security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. Its products are used for various applications which includes alarm systems like automatic communicators, combination control panels/digital communicators and digital keypad systems, fire alarm control panel and area detectors mainly used for commercial, residential, institutional, industrial and governmental uses. Geographically, the company derives a majority of its revenue from the United States.
99GF Score
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