>
Switch to:

# WACC %

: (As of Today)
View and export this data going back to 1990. Start your Free Trial

As of today (2022-05-16), 's weighted average cost of capital is %. 's ROIC % is % (calculated using TTM income statement data). 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.

## WACC % Historical Data

The historical data trend for '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.

Annual Data
Trend
WACC %

 Semi-Annual Data WACC %

## WACC % Calculation

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)

(:) 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, 's weighted average cost of capital is %. 's ROIC % is % (calculated using TTM income statement data). 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 two-year average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.

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 last fiscal year end Interest Expense divided by the latest two-year average debt to get the simplified cost of debt.

Related Terms

Industry
» NAICS : SIC :
Comparable Companies
N/A
N/A
Website

From GuruFocus

###### CTT Systems AB (publ.) - Annual Report 2021

By ACCESSWIRE 03-31-2022

###### Anaconda Mining Identifies New Mineralized Systems at Point Rousse, Intersecting 2.09 G/T Over 5.7 Metres and 1.38 G/T Over 5.7 Metres

By ACCESSWIRE 03-31-2022

###### AlzeCure Pharma Publishes its Annual Report for 2021

By ACCESSWIRE 04-06-2022

###### Tier 1 U.S. operator chooses EXFO technology to enhance 5G customer experience

By PRNewswire 04-05-2022

###### Gaming Realms Launches Content in Ontario

By ACCESSWIRE 04-06-2022

###### Angle PLC Announces Identifying Drug Targets in Cancer Metastasis

By ACCESSWIRE 04-01-2022

###### Love Hemp Group PLC Announces Result of General Meeting

By ACCESSWIRE 04-01-2022

###### Abrdn U.S. Closed-End Funds Announce Release of U.S. Closed End Funds Monthly Factsheets

By ACCESSWIRE 04-05-2022

###### 2 Dosell are Implemented in a New Municipality

By ACCESSWIRE 04-06-2022

###### Annual Report 2021

By ACCESSWIRE 04-04-2022

Other Sources

###### 3 Changes to Social Security You Probably Didn't Know About

By Fool 2022-04-05

###### 3 Retirement Accounts That Can Help You Go Beyond a 401(k)

By Fool 2022-04-04

###### Exactly How I'd Invest \$5,000 If I Had to Start From Scratch Today

By Fool 2022-04-04

###### Elon Musk is Now Twitter's Biggest Shareholder

By Fool 2022-04-04

###### 93% of HSA Holders Are Making This Huge Mistake

By Fool 2022-04-05

###### 3 Pieces of Toxic Real Estate Advice You Must Ignore

By Fool 2022-04-05

###### Elon Musk and Jeff Bezos Love This Concept. But Can It Work?

By Fool 2022-04-06

###### Cheap Juice: Honda and GM Pair Up to Keep Their EV Costs Down

By Fool 2022-04-05

###### Will Home Equity Levels Rise in 2022?

By Fool 2022-04-06

###### Here's How to Squeeze an Extra 24% Out of Social Security

By Fool 2022-04-04

###### 2 Reasons You Shouldn't Add a Gold ETF to Your Portfolio

By Fool 2022-04-05

###### 3 Ways to Grow \$100,000 Into \$1 Million for Retirement Savings

By Fool 2022-04-06

###### Claiming Social Security at 62 Will Slash Your Benefits. Here's Why You Should Sign Up Then Anyway.

By Fool 2022-04-06

###### Why You Should Invest in Real Estate Investment Trusts

By Fool 2022-04-05

###### This Generation Is the Most Optimistic About Their Retirement

By Fool 2022-04-06

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to \$400 per referral. ( Learn More)