New Focus Auto Tech HoldingsNWFAF WACC % is -0.89% as of Jul. 03, 2026. The stock has 5 warning signs investors should review. Among 1,345 Vehicles & Parts companies, New Focus Auto Tech Holdings ranks better than 99.03% on this metric.
As of today (2026-07-03), New Focus Auto Tech Holdings's weighted average cost of capital is -0.89%%. New Focus Auto Tech Holdings's ROIC % is -6.47% (calculated using TTM income statement data).
New Focus Auto Tech Holdings 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.
New Focus Auto Tech Holdings (OTCPK:NWFAF) 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, New Focus Auto Tech Holdings's weighted average cost of capital is -0.89%%. New Focus Auto Tech Holdings's ROIC % is -6.47% (calculated using TTM income statement data).
New Focus Auto Tech Holdings 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
New Focus Auto Tech Holdings 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 Auto Parts subindustry, New Focus Auto Tech 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.
New Focus Auto Tech Holdings WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, New Focus Auto Tech Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where New Focus Auto Tech 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, New Focus Auto Tech Holdings's market capitalization (E) is $83.436 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, New Focus Auto Tech Holdings's latest one-year semi-annual average Book Value of Debt (D) is $48.691 Mil.
a) weight of equity = E / (E + D) = 83.436 / (83.436 + 48.691) = 0.6315
b) weight of debt = D / (E + D) = 48.691 / (83.436 + 48.691) = 0.3685
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 4.485%. 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. New Focus Auto Tech Holdings's beta is -1.5802.
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 = 4.485% + -1.5802 * 6% = -4.9962%
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, New Focus Auto Tech Holdings's interest expense (positive number) was $2.993 Mil. Its total Book Value of Debt (D) is $48.691 Mil.
Cost of Debt = 2.993 / 48.691 = 6.1469%.
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 = 0.524 / -18.069 = -2.9%, which is less than 0%. Therefore it's set to 0%.
* 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.
New Focus Auto Tech Holdings (NWFAF) has a WACC % of -0.89% as of Jul. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on New Focus Auto Tech Holdings and its competitors. Over the past decade, New Focus Auto Tech Holdings' WACC % has ranged from 0.04 to 13.77. According to the industry distribution chart, New Focus Auto Tech Holdings ranks #13 out of 1345 companies in the Vehicles & Parts industry, placing it in the top 1%.
Is New Focus Auto Tech Holdings' WACC % too high?
New Focus Auto Tech Holdings' current WACC % is -0.89%. Over the past 10 years, this metric has ranged from a low of 0.04 to a high of 13.77. Based on the distribution chart, New Focus Auto Tech Holdings ranks #13 out of 1345 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers.
How does New Focus Auto Tech Holdings' WACC % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, New Focus Auto Tech Holdings ranks #13 out of 1345 companies for WACC %. This places New Focus Auto Tech Holdings in the top 1% of its industry — outperforming the majority of peers. The industry median WACC % is 8.47. Historically, New Focus Auto Tech Holdings' own WACC % has ranged from 0.04 to 13.77 over the past decade. 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 Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.47, based on 1,345 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. 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 New Focus Auto Tech Holdings and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Focus Auto Tech Holdings's current WACC % is -0.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Focus Auto Tech Holdings stock overvalued right now?
New Focus Auto Tech Holdings (NWFAF) has a current WACC % of -0.89%. The current WACC % is -0.89%. 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 New Focus Auto Tech Holdings (NWFAF), the current WACC % is -0.89% as of Jul. 03, 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.
New Focus Auto Tech Holdings Ltd focuses on the R&D, manufacturing and sales of automotive electronic products, the construction and development of automobile dealership networks and the R&D, sales and provision of integrated solutions for hydrogen fuel cells. The automotive electronic products include inverters, chargers, multi-functional power packs, and cooling and heating boxes. Its segments include Manufacturing and Trading Business engages in the manufacture and sale of automobile accessories; Automobile Dealership and Services Business engages in the operation of the 4S dealership stores and related business; and Hydrogen Fuel Cell Business engages in the research and development, sales and provision of integrated solutions for hydrogen fuel cell.
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