Ocean Power TechnologiesOPTT +2.83%43 WACC % is 23.08% as of Jun. 26, 2026, which is 35% above its 10-year median of 17.14. GuruFocus rates OPTT with a GF Score™ of 43/100 and a GF Value™ of $0.14 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 3,093 Industrial Products companies, Ocean Power Technologies ranks worse than 98.87% on this metric.
As of today (2026-06-26), Ocean Power Technologies's weighted average cost of capital is 23.08%%. Ocean Power Technologies's ROIC % is -115.21% (calculated using TTM income statement data).
Ocean Power Technologies 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.
Ocean Power Technologies (AMEX:OPTT) 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, Ocean Power Technologies's weighted average cost of capital is 23.08%%. Ocean Power Technologies's ROIC % is -115.21% (calculated using TTM income statement data).
Ocean Power Technologies 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 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 Specialty Industrial Machinery subindustry, Ocean Power 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.
Ocean Power Technologies WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ocean Power Technologies's WACC % distribution charts can be found below:
* The bar in red indicates where Ocean Power 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, Ocean Power Technologies's market capitalization (E) is $64.814 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 Jan. 2026, Ocean Power Technologies's latest one-year quarterly average Book Value of Debt (D) is $6.7918 Mil.
a) weight of equity = E / (E + D) = 64.814 / (64.814 + 6.7918) = 0.9052
b) weight of debt = D / (E + D) = 6.7918 / (64.814 + 6.7918) = 0.0948
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. Ocean Power Technologies's beta is 3.1208.
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% + 3.1208 * 6% = 23.1008%
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 Jan. 2026, Ocean Power Technologies's interest expense (positive number) was $1.6 Mil. Its total Book Value of Debt (D) is $6.7918 Mil.
Cost of Debt = 1.6 / 6.7918 = 23.5578%.
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 = -1.034 / -37.039 = 2.79%.
* 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.
Ocean Power Technologies (OPTT) has a WACC % of 23.08% as of Jun. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Ocean Power Technologies and its competitors. This is 35% above median its historical median of 17.14. Over the past decade, Ocean Power Technologies' WACC % has ranged from 7.97 to 35.58. According to the industry distribution chart, Ocean Power Technologies ranks #3058 out of 3093 companies in the Industrial Products industry, placing it in the top 98.9%.
Is Ocean Power Technologies' WACC % too high?
Ocean Power Technologies' current WACC % of 23.08% is 35% above median its 10-year median of 17.14. Over the past 10 years, this metric has ranged from a low of 7.97 to a high of 35.58. The Industrial Products industry median WACC % is 9.77. Ocean Power Technologies' value of 23.08% is 136.2% above this industry median. Based on the distribution chart, Ocean Power Technologies ranks #3058 out of 3093 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Ocean Power Technologies has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ocean Power Technologies' WACC % compare to BWEN and HURC?
According to the Industrial Products industry distribution chart, Ocean Power Technologies ranks #3058 out of 3093 companies for WACC %. This places Ocean Power Technologies in the lower half of its industry. The industry median WACC % is 9.77. Ocean Power Technologies' value of 23.08% is 136.2% above this benchmark. Historically, Ocean Power Technologies' own WACC % has ranged from 7.97 to 35.58 over the past decade. While the company's 10-year median is 17.14 vs. the industry median of 9.77, Ocean Power 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 an Industrial Products company?
The median WACC % among Industrial Products companies is 9.77, based on 3,093 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. Ocean Power Technologies's current WACC % of 23.08% is 136.2% 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 Ocean Power Technologies and its competitors. For the Industrial Products industry, the median WACC % is 9.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ocean Power Technologies's current WACC % is 23.08%, which is 35% above median its own 10-year median of 17.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ocean Power Technologies stock overvalued right now?
Based on GuruFocus' analysis, Ocean Power Technologies (OPTT) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.14, compared to a current price of $0.25 — trading 81.4% above its estimated fair value. The current WACC % is 23.08%, which is 35% above median its 10-year median of 17.14 and 136.2% above the Industrial Products industry median of 9.77. Ocean Power Technologies' overall GF Score™ is 43/100 with 8 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 Ocean Power Technologies (OPTT), the current WACC % is 23.08% as of Jun. 26, 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 Ocean Power Technologies (OPTT) Overvalued in 2026?
Based on GuruFocus' analysis, Ocean Power Technologies stock appears to be overvalued.
The current stock price of $0.25 is trading 81.4% above its estimated GF Value™ of $0.14.
GuruFocus considers Ocean Power Technologies to be Significantly Overvalued.
Key valuation signals for OPTT:
WACC %: 23.08% (35% above median its 10-year median of 17.14)
GF Value™: $0.14 vs. price of $0.25 (81.4% above fair value)
Industry Position: 136.2% above the Industrial Products median (#3058 of 3093)
No single metric tells the full story. See the OPTT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ocean Power Technologies Inc provides intelligent maritime solutions and services that enable safer, cleaner, and more productive ocean operations for the defense and security, oil and gas, science and research, and offshore wind markets. It provides ocean data collection and reporting, marine power, offshore communications, and Maritime Domain Awareness System (MDAS) products, integrated solutions, and consulting services. The company offers its products and services to a wide range of customers, including those in government and offshore energy, oil and gas, construction, wind power, and other industries. The company has operations in North and South America, Europe, Asia and Australia.
43GF Score
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