Megawide ConstructionPHS:MWIDE +0.26%78 WACC % is 6.05% as of Jun. 24, 2026, which is 6% above its 10-year median of 5.72. GuruFocus rates PHS:MWIDE with a GF Score™ of 78/100 and a GF Value™ of ₱3.37 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 571 Conglomerates companies, Megawide Construction ranks better than 57.97% on this metric.
As of today (2026-06-24), Megawide Construction's weighted average cost of capital is 6.05%%. Megawide Construction's ROIC % is 3.50% (calculated using TTM income statement data).
Megawide Construction 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.
Megawide Construction (PHS:MWIDE) 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, Megawide Construction's weighted average cost of capital is 6.05%%. Megawide Construction's ROIC % is 3.50% (calculated using TTM income statement data).
Megawide Construction 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 Conglomerates subindustry, Megawide Construction'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.
Megawide Construction WACC % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Megawide Construction's WACC % distribution charts can be found below:
* The bar in red indicates where Megawide Construction'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, Megawide Construction's market capitalization (E) is ₱7750.693 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, Megawide Construction's latest one-year quarterly average Book Value of Debt (D) is ₱35171.0988 Mil.
a) weight of equity = E / (E + D) = 7750.693 / (7750.693 + 35171.0988) = 0.1806
b) weight of debt = D / (E + D) = 35171.0988 / (7750.693 + 35171.0988) = 0.8194
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 4.402%. 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. Megawide Construction's beta is 0.6193.
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 = 4.402% + 0.6193 * 6% = 8.1178%
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, Megawide Construction's interest expense (positive number) was ₱2571.61 Mil. Its total Book Value of Debt (D) is ₱35171.0988 Mil.
Cost of Debt = 2571.61 / 35171.0988 = 7.3117%.
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 = 221.571 / 946.012 = 23.42%.
Megawide Construction'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)
=
0.1806
*
8.1178%
+
0.8194
*
7.3117%
*
(1 - 23.42%)
=
6.05%
* 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.
Megawide Construction (PHS:MWIDE) has a WACC % of 6.05% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Megawide Construction and its competitors. This is near median its historical median of 5.72. Over the past decade, Megawide Construction's WACC % has ranged from 3.35 to 6.69. According to the industry distribution chart, Megawide Construction ranks #240 out of 571 companies in the Conglomerates industry, placing it in the top 42%.
Is Megawide Construction's WACC % too high?
Megawide Construction's current WACC % of 6.05% is near median its 10-year median of 5.72. Over the past 10 years, this metric has ranged from a low of 3.35 to a high of 6.69. The Conglomerates industry median WACC % is 6.73. Megawide Construction's value of 6.05% is 10.1% below this industry median. Based on the distribution chart, Megawide Construction ranks #240 out of 571 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Megawide Construction has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Megawide Construction's WACC % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Megawide Construction ranks #240 out of 571 companies for WACC %. This puts Megawide Construction in the upper half of its industry. The industry median WACC % is 6.73. Megawide Construction's value of 6.05% is 10.1% below this benchmark. Historically, Megawide Construction's own WACC % has ranged from 3.35 to 6.69 over the past decade. While the company's 10-year median is 5.72 vs. the industry median of 6.73, Megawide Construction 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 Conglomerates company?
The median WACC % among Conglomerates companies is 6.73, based on 571 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. Megawide Construction's current WACC % of 6.05% is 10.1% 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 Megawide Construction and its competitors. For the Conglomerates industry, the median WACC % is 6.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Megawide Construction's current WACC % is 6.05%, which is near median its own 10-year median of 5.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megawide Construction stock overvalued right now?
Based on GuruFocus' analysis, Megawide Construction (PHS:MWIDE) is currently considered Modestly Overvalued. The stock's GF Value™ is ₱3.37, compared to a current price of ₱3.84 — trading 13.9% above its estimated fair value. The current WACC % is 6.05%, which is near median its 10-year median of 5.72 and 10.1% below the Conglomerates industry median of 6.73. Megawide Construction's overall GF Score™ is 78/100 with 10 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 Megawide Construction (PHS:MWIDE), the current WACC % is 6.05% as of Jun. 24, 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 Megawide Construction (PHS:MWIDE) Overvalued in 2026?
Based on GuruFocus' analysis, Megawide Construction stock appears to be overvalued.
The current stock price of ₱3.84 is trading 13.9% above its estimated GF Value™ of ₱3.37.
GuruFocus considers Megawide Construction to be Modestly Overvalued.
Key valuation signals for PHS:MWIDE:
WACC %: 6.05% (near median its 10-year median of 5.72)
GF Value™: ₱3.37 vs. price of ₱3.84 (13.9% above fair value)
Industry Position: 10.1% below the Conglomerates median (#240 of 571)
No single metric tells the full story. See the PHS:MWIDE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Megawide Construction Corp is engaged in the general construction business, including constructing, enlarging, repairing, or engaging in any work upon buildings, houses and condominium, roads, plants, bridges, piers, waterworks, railroads and other structures. It performs other allied construction business like the construction and sale of precast items, concrete production, and purchase sale and/or lease of formworks system and construction equipment. The company has three segment Construction operations; Landport operations; Real estate operations. The company generates majority of revenue from Construction operations principally refers to general construction business, including constructing and sale of precast items and concrete production and rental of construction equipment.
78GF Score
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