Oil & Gas Development CoODVCI 86 WACC % is 10.59% as of Jun. 27, 2026, which is 23% above its 10-year median of 8.58. GuruFocus rates ODVCI with a GF Score™ of 86/100. The stock has 7 warning signs investors should review. Among 1,036 Oil & Gas companies, Oil & Gas Development Co ranks worse than 79.54% on this metric.
As of today (2026-06-27), Oil & Gas Development Co's weighted average cost of capital is 10.59%%. Oil & Gas Development Co's ROIC % is 8.45% (calculated using TTM income statement data).
Oil & Gas Development Co 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.
Oil & Gas Development Co (OTCPK:ODVCI) 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, Oil & Gas Development Co's weighted average cost of capital is 10.59%%. Oil & Gas Development Co's ROIC % is 8.45% (calculated using TTM income statement data).
Oil & Gas Development Co 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 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.
* 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 Oil & Gas E&P subindustry, Oil & Gas Development Co'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.
Oil & Gas Development Co WACC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Oil & Gas Development Co's WACC % distribution charts can be found below:
* The bar in red indicates where Oil & Gas Development Co'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, Oil & Gas Development Co's market capitalization (E) is $5240.644 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, Oil & Gas Development Co's latest one-year quarterly average Book Value of Debt (D) is $9.5805 Mil.
a) weight of equity = E / (E + D) = 5240.644 / (5240.644 + 9.5805) = 0.9982
b) weight of debt = D / (E + D) = 9.5805 / (5240.644 + 9.5805) = 0.0018
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. Oil & Gas Development Co'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 TTM Interest Expense divided by the latest one-year quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, Oil & Gas Development Co's interest expense (positive number) was $18.361 Mil. Its total Book Value of Debt (D) is $9.5805 Mil.
Cost of Debt = 18.361 / 9.5805 = 191.6497%.
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 = 274.899 / 834.203 = 32.95%.
* 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.
Oil & Gas Development Co (ODVCI) has a WACC % of 10.59% 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 Oil & Gas Development Co and its competitors. This is 23% above median its historical median of 8.58. Over the past decade, Oil & Gas Development Co's WACC % has ranged from 6.66 to 10.55. According to the industry distribution chart, Oil & Gas Development Co ranks #824 out of 1036 companies in the Oil & Gas industry, placing it in the top 79.5%.
Is Oil & Gas Development Co's WACC % too high?
Oil & Gas Development Co's current WACC % of 10.59% is 23% above median its 10-year median of 8.58. Over the past 10 years, this metric has ranged from a low of 6.66 to a high of 10.55. The Oil & Gas industry median WACC % is 7.40. Oil & Gas Development Co's value of 10.59% is 43.1% above this industry median. Based on the distribution chart, Oil & Gas Development Co ranks #824 out of 1036 companies in the Oil & Gas industry, which is in the bottom quartile relative to peers. Overall, Oil & Gas Development Co has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Oil & Gas Development Co's WACC % compare to COP and EOG?
According to the Oil & Gas industry distribution chart, Oil & Gas Development Co ranks #824 out of 1036 companies for WACC %. This places Oil & Gas Development Co in the lower half of its industry. The industry median WACC % is 7.40. Oil & Gas Development Co's value of 10.59% is 43.1% above this benchmark. Historically, Oil & Gas Development Co's own WACC % has ranged from 6.66 to 10.55 over the past decade. While the company's 10-year median is 8.58 vs. the industry median of 7.40, Oil & Gas Development Co 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 Oil & Gas company?
The median WACC % among Oil & Gas companies is 7.40, based on 1,036 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. Oil & Gas Development Co's current WACC % of 10.59% is 43.1% 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 Oil & Gas Development Co and its competitors. For the Oil & Gas industry, the median WACC % is 7.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oil & Gas Development Co's current WACC % is 10.59%, which is 23% above median its own 10-year median of 8.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oil & Gas Development Co stock overvalued right now?
Oil & Gas Development Co (ODVCI) has a current WACC % of 10.59%. The current WACC % is 10.59%, which is 23% above median its 10-year median of 8.58 and 43.1% above the Oil & Gas industry median of 7.40. Oil & Gas Development Co's overall GF Score™ is 86/100 with 7 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 Oil & Gas Development Co (ODVCI), the current WACC % is 10.59% 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.
Oil & Gas Development Co Ltd is a Pakistani state-owned oil and gas exploration and production company. It operates a broad portfolio of oil and gas fields across Pakistan, focusing on exploring, developing, producing, and selling crude oil, natural gas, liquefied petroleum gas, and sulfur. The company generates revenue through the sale of these petroleum products, supplying sectors like power generation, fertilizer, and distribution companies. The company also pursues opportunities to expand domestically and internationally, including involvement in mining and energy projects beyond Pakistan.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ODVCI has been successfully added to your 