General CapitalNZSE:GEN 42 WACC % is 7.26% as of Jun. 29, 2026, which is 81% above its 10-year median of 4.01. GuruFocus rates NZSE:GEN with a GF Score™ of 42/100 and a GF Value™ of NZ$0.97 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 1,546 Banks companies, General Capital ranks better than 81.57% on this metric.
As of today (2026-06-29), General Capital's weighted average cost of capital is 7.26%%. General Capital's ROIC % is -2.35% (calculated using TTM income statement data).
General Capital 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.
General Capital (NZSE:GEN) 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, General Capital's weighted average cost of capital is 7.26%%. General Capital's ROIC % is -2.35% (calculated using TTM income statement data).
General Capital 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
General Capital WACC % Historical Data
* Premium members only.
The historical data trend for General Capital'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 Mortgage Finance subindustry, General Capital'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.
General Capital WACC % vs Banks Industry
For the Banks industry and Financial Services sector, General Capital's WACC % distribution charts can be found below:
* The bar in red indicates where General Capital'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, General Capital's market capitalization (E) is NZ$24.348 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 Mar. 2026, General Capital's latest one-year semi-annual average Book Value of Debt (D) is NZ$0 Mil.
a) weight of equity = E / (E + D) = 24.348 / (24.348 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (24.348 + 0) = 0
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. General Capital's beta is 0.4306.
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% + 0.4306 * 6% = 7.2636%
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 Mar. 2026, General Capital's interest expense (positive number) was NZ$15.178 Mil. Its total Book Value of Debt (D) is NZ$0 Mil.
Cost of Debt = 15.178 / 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 = 1.272 / 3.995 = 31.84%.
General Capital'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)
=
1
*
7.2636%
+
0
*
%
*
(1 - 31.84%)
=
7.26%
* 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.
General Capital (NZSE:GEN) has a WACC % of 7.26% as of Jun. 29, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on General Capital and its competitors. This is 81% above median its historical median of 4.01. According to the industry distribution chart, General Capital ranks #285 out of 1546 companies in the Banks industry, placing it in the top 18.4%.
Is General Capital's WACC % too high?
General Capital's current WACC % of 7.26% is 81% above median its 10-year median of 4.01. The Banks industry median WACC % is 13.18. General Capital's value of 7.26% is 44.9% below this industry median. Based on the distribution chart, General Capital ranks #285 out of 1546 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, General Capital has a GF Score™ of 42/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does General Capital's WACC % compare to RKT and FNMA?
According to the Banks industry distribution chart, General Capital ranks #285 out of 1546 companies for WACC %. This places General Capital in the top 18% of its industry — outperforming the majority of peers. The industry median WACC % is 13.18. General Capital's value of 7.26% is 44.9% below this benchmark. While the company's 10-year median is 4.01 vs. the industry median of 13.18, General Capital 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 Banks company?
The median WACC % among Banks companies is 13.18, based on 1,546 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. General Capital's current WACC % of 7.26% is 44.9% 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 General Capital and its competitors. For the Banks industry, the median WACC % is 13.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. General Capital's current WACC % is 7.26%, which is 81% above median its own 10-year median of 4.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is General Capital stock overvalued right now?
Based on GuruFocus' analysis, General Capital (NZSE:GEN) is currently considered Possible Value Trap. The stock's GF Value™ is NZ$0.97, compared to a current price of NZ$0.27 — trading 72.7% below its estimated fair value. The current WACC % is 7.26%, which is 81% above median its 10-year median of 4.01 and 44.9% below the Banks industry median of 13.18. General Capital's overall GF Score™ is 42/100 with 3 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 General Capital (NZSE:GEN), the current WACC % is 7.26% as of Jun. 29, 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 General Capital (NZSE:GEN) Overvalued in 2026?
Based on GuruFocus' analysis, General Capital stock appears to be undervalued.
The current stock price of NZ$0.27 is trading 72.7% below its estimated GF Value™ of NZ$0.97.
GuruFocus considers General Capital to be Possible Value Trap.
Key valuation signals for NZSE:GEN:
WACC %: 7.26% (81% above median its 10-year median of 4.01)
GF Value™: NZ$0.97 vs. price of NZ$0.27 (72.7% below fair value)
Industry Position: 44.9% below the Banks median (#285 of 1546)
No single metric tells the full story. See the NZSE:GEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
General Capital Ltd through its subsidiaries engaged in providing financial services. The company accepts deposits and also lends funds to borrowers over residential property. It operates through three segments: Finance: Deposit taking and property mortgage lending, and insurance premium funding, Research and Advisory: Provides investment advisory services and produces and sells investment research and publications. Corporate and Other: Corporate function and investment activities. The Finance segment generates the majority of revenue for the company.
42GF Score
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