Pepkor HoldingsPPKRF 83 WACC % is 13.39% as of Jul. 03, 2026, which is 3% above its 10-year median of 12.98. GuruFocus rates PPKRF with a GF Score™ of 83/100 and a GF Value™ of $1.58. The stock has 2 warning signs investors should review. Among 1,137 Retail - Cyclical companies, Pepkor Holdings ranks worse than 79.86% on this metric.
As of today (2026-07-03), Pepkor Holdings's weighted average cost of capital is 13.39%%. Pepkor Holdings's ROIC % is 10.76% (calculated using TTM income statement data).
Pepkor Holdings 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.
Pepkor Holdings (OTCPK:PPKRF) 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, Pepkor Holdings's weighted average cost of capital is 13.39%%. Pepkor Holdings's ROIC % is 10.76% (calculated using TTM income statement data).
Pepkor Holdings 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 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
Pepkor Holdings WACC % Historical Data
* Premium members only.
The historical data trend for Pepkor Holdings'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 Department Stores subindustry, Pepkor Holdings'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.
Pepkor Holdings WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Pepkor Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Pepkor Holdings'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, Pepkor Holdings's market capitalization (E) is $4962.105 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, Pepkor Holdings's latest one-year semi-annual average Book Value of Debt (D) is $1703.84 Mil.
a) weight of equity = E / (E + D) = 4962.105 / (4962.105 + 1703.84) = 0.7444
b) weight of debt = D / (E + D) = 1703.84 / (4962.105 + 1703.84) = 0.2556
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 8.995%. 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. Pepkor Holdings'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 = 8.995% + 1 * 6% = 14.995%
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, Pepkor Holdings's interest expense (positive number) was $201.463 Mil. Its total Book Value of Debt (D) is $1703.84 Mil.
Cost of Debt = 201.463 / 1703.84 = 11.8241%.
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 = 125.525 / 479.323 = 26.19%.
Pepkor Holdings'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)
=
0.7444
*
14.995%
+
0.2556
*
11.8241%
*
(1 - 26.19%)
=
13.39%
* 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.
Pepkor Holdings (PPKRF) has a WACC % of 13.39% as of Jul. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Pepkor Holdings and its competitors. This is near median its historical median of 12.98. Over the past decade, Pepkor Holdings' WACC % has ranged from 6.93 to 14.13. According to the industry distribution chart, Pepkor Holdings ranks #908 out of 1137 companies in the Retail - Cyclical industry, placing it in the top 79.9%.
Is Pepkor Holdings' WACC % too high?
Pepkor Holdings' current WACC % of 13.39% is near median its 10-year median of 12.98. Over the past 10 years, this metric has ranged from a low of 6.93 to a high of 14.13. The Retail - Cyclical industry median WACC % is 7.56. Pepkor Holdings' value of 13.39% is 77.1% above this industry median. Based on the distribution chart, Pepkor Holdings ranks #908 out of 1137 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Pepkor Holdings has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Pepkor Holdings' WACC % compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Pepkor Holdings ranks #908 out of 1137 companies for WACC %. This places Pepkor Holdings in the lower half of its industry. The industry median WACC % is 7.56. Pepkor Holdings' value of 13.39% is 77.1% above this benchmark. Historically, Pepkor Holdings' own WACC % has ranged from 6.93 to 14.13 over the past decade. While the company's 10-year median is 12.98 vs. the industry median of 7.56, Pepkor Holdings 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 a Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.56, based on 1,137 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. Pepkor Holdings's current WACC % of 13.39% is 77.1% 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 Pepkor Holdings and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pepkor Holdings's current WACC % is 13.39%, which is near median its own 10-year median of 12.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pepkor Holdings stock overvalued right now?
Pepkor Holdings (PPKRF) has a current WACC % of 13.39%. The stock's GF Value™ is $1.58, compared to a current price of $1.30 — trading 17.7% below its estimated fair value. The current WACC % is 13.39%, which is near median its 10-year median of 12.98 and 77.1% above the Retail - Cyclical industry median of 7.56. Pepkor Holdings' overall GF Score™ is 83/100 with 2 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 Pepkor Holdings (PPKRF), the current WACC % is 13.39% as of Jul. 03, 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 Pepkor Holdings (PPKRF) Overvalued in 2026?
Based on GuruFocus' analysis, Pepkor Holdings stock appears to be undervalued.
The current stock price of $1.30 is trading 17.7% below its estimated GF Value™ of $1.58.
Key valuation signals for PPKRF:
WACC %: 13.39% (near median its 10-year median of 12.98)
GF Value™: $1.58 vs. price of $1.30 (17.7% below fair value)
Industry Position: 77.1% above the Retail - Cyclical median (#908 of 1137)
No single metric tells the full story. See the PPKRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pepkor Holdings Ltd is a South African retail investment company specializing in discount and value consumer goods. The company operates across three segments: i) Clothing and general merchandise: This segment includes all clothing, footwear and homeware (CFH) retail brands. ii) Furniture, appliances and electronics: This segment includes the Pepkor Lifestyle retail business. iii) FinTech: This segment provides Financial services including Lending, Insurance, etc. The company derives the majority of its revenue from the Clothing and general merchandise segment. Geographically, it generates the maximum revenue from South Africa.
83GF Score
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