Allied FarmersNZSE:ALF +3.17%24 WACC % is 4.53% as of Jun. 28, 2026, which is 37% below its 10-year median of 7.15. GuruFocus rates NZSE:ALF with a GF Score™ of 24/100 and a GF Value™ of NZ$0.01 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 2,035 Consumer Packaged Goods companies, Allied Farmers ranks better than 75.04% on this metric.
As of today (2026-06-28), Allied Farmers's weighted average cost of capital is 4.53%%. Allied Farmers's ROIC % is -34.06% (calculated using TTM income statement data).
Allied Farmers 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.
Allied Farmers (NZSE:ALF) 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, Allied Farmers's weighted average cost of capital is 4.53%%. Allied Farmers's ROIC % is -34.06% (calculated using TTM income statement data).
Allied Farmers 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
Allied Farmers WACC % Historical Data
* Premium members only.
The historical data trend for Allied Farmers'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 Farm Products subindustry, Allied Farmers'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.
Allied Farmers WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Allied Farmers's WACC % distribution charts can be found below:
* The bar in red indicates where Allied Farmers'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, Allied Farmers's market capitalization (E) is NZ$18.724 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, Allied Farmers's latest one-year semi-annual average Book Value of Debt (D) is NZ$14.0417 Mil.
a) weight of equity = E / (E + D) = 18.724 / (18.724 + 14.0417) = 0.5715
b) weight of debt = D / (E + D) = 14.0417 / (18.724 + 14.0417) = 0.4285
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 4.68%. 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. Allied Farmers's beta is 0.0751.
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 = 4.68% + 0.0751 * 6% = 5.1306%
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, Allied Farmers's interest expense (positive number) was NZ$0.523 Mil. Its total Book Value of Debt (D) is NZ$14.0417 Mil.
Cost of Debt = 0.523 / 14.0417 = 3.7246%.
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 = -2.554 / 1.062 = -240.49%, which is less than 0%. Therefore it's set to 0%.
Allied Farmers'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)
=
0.5715
*
5.1306%
+
0.4285
*
3.7246%
*
(1 - 0%)
=
4.53%
* 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.
Allied Farmers (NZSE:ALF) has a WACC % of 4.53% as of Jun. 28, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Allied Farmers and its competitors. This is 37% below median its historical median of 7.15. Over the past decade, Allied Farmers' WACC % has ranged from 1.38 to 14.54. According to the industry distribution chart, Allied Farmers ranks #508 out of 2035 companies in the Consumer Packaged Goods industry, placing it in the top 25%.
Is Allied Farmers' WACC % too high?
Allied Farmers' current WACC % of 4.53% is 37% below median its 10-year median of 7.15. Over the past 10 years, this metric has ranged from a low of 1.38 to a high of 14.54. The Consumer Packaged Goods industry median WACC % is 7.69. Allied Farmers' value of 4.53% is 41.1% below this industry median. Based on the distribution chart, Allied Farmers ranks #508 out of 2035 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Allied Farmers has a GF Score™ of 24/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allied Farmers' WACC % compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, Allied Farmers ranks #508 out of 2035 companies for WACC %. This places Allied Farmers in the top 25% of its industry — outperforming the majority of peers. The industry median WACC % is 7.69. Allied Farmers' value of 4.53% is 41.1% below this benchmark. Historically, Allied Farmers' own WACC % has ranged from 1.38 to 14.54 over the past decade. While the company's 10-year median is 7.15 vs. the industry median of 7.69, Allied Farmers 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 a Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.69, based on 2,035 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. Allied Farmers's current WACC % of 4.53% is 41.1% 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 Allied Farmers and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allied Farmers's current WACC % is 4.53%, which is 37% below median its own 10-year median of 7.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allied Farmers stock overvalued right now?
Based on GuruFocus' analysis, Allied Farmers (NZSE:ALF) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$0.01, compared to a current price of NZ$0.65 — trading 6400% above its estimated fair value. The current WACC % is 4.53%, which is 37% below median its 10-year median of 7.15 and 41.1% below the Consumer Packaged Goods industry median of 7.69. Allied Farmers' overall GF Score™ is 24/100 with 5 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 Allied Farmers (NZSE:ALF), the current WACC % is 4.53% as of Jun. 28, 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 Allied Farmers (NZSE:ALF) Overvalued in 2026?
Based on GuruFocus' analysis, Allied Farmers stock appears to be overvalued.
The current stock price of NZ$0.65 is trading 6400% above its estimated GF Value™ of NZ$0.01.
GuruFocus considers Allied Farmers to be Significantly Overvalued.
Key valuation signals for NZSE:ALF:
WACC %: 4.53% (37% below median its 10-year median of 7.15)
GF Value™: NZ$0.01 vs. price of NZ$0.65 (6400% above fair value)
Industry Position: 41.1% below the Consumer Packaged Goods median (#508 of 2035)
No single metric tells the full story. See the NZSE:ALF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allied Farmers Ltd is engaged in the trading of dairy herds and sourcing and promoting dairy, beef, and sheep livestock for sale. The company's operating segment include Livestock Services, Financial Services, Rural Land Management and Parent Operations. It generates maximum revenue from the Livestock Services segment which involves an agency business facilitating livestock transactions and the procurement and export of veal.
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