Precise Biometrics ABPRBCF 27 WACC % is 2.87% as of Jun. 24, 2026, which is 57% below its 10-year median of 6.60. GuruFocus rates PRBCF with a GF Score™ of 27/100 and a GF Value™ of $0.24 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,114 Business Services companies, Precise Biometrics AB ranks better than 97.04% on this metric.
As of today (2026-06-24), Precise Biometrics AB's weighted average cost of capital is 2.87%%. Precise Biometrics AB's ROIC % is -11.14% (calculated using TTM income statement data).
Precise Biometrics AB 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.
Precise Biometrics AB (OTCPK:PRBCF) 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, Precise Biometrics AB's weighted average cost of capital is 2.87%%. Precise Biometrics AB's ROIC % is -11.14% (calculated using TTM income statement data).
Precise Biometrics AB 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 Security & Protection Services subindustry, Precise Biometrics AB'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.
Precise Biometrics AB WACC % vs Business Services Industry
For the Business Services industry and Industrials sector, Precise Biometrics AB's WACC % distribution charts can be found below:
* The bar in red indicates where Precise Biometrics AB'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, Precise Biometrics AB's market capitalization (E) is $17.762 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, Precise Biometrics AB's latest one-year quarterly average Book Value of Debt (D) is $1.6364 Mil.
a) weight of equity = E / (E + D) = 17.762 / (17.762 + 1.6364) = 0.9156
b) weight of debt = D / (E + D) = 1.6364 / (17.762 + 1.6364) = 0.0844
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 2.7446%. 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. Precise Biometrics AB's beta is 0.0407.
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 = 2.7446% + 0.0407 * 6% = 2.9888%
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, Precise Biometrics AB's interest expense (positive number) was $0.027 Mil. Its total Book Value of Debt (D) is $1.6364 Mil.
Cost of Debt = 0.027 / 1.6364 = 1.65%.
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 = -0.036 / -1.99 = 1.81%.
Precise Biometrics AB'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)
=
0.9156
*
2.9888%
+
0.0844
*
1.65%
*
(1 - 1.81%)
=
2.87%
* 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.
Precise Biometrics AB (PRBCF) has a WACC % of 2.87% 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 Precise Biometrics AB and its competitors. This is 57% below median its historical median of 6.60. According to the industry distribution chart, Precise Biometrics AB ranks #33 out of 1114 companies in the Business Services industry, placing it in the top 3%.
Is Precise Biometrics AB's WACC % too high?
Precise Biometrics AB's current WACC % of 2.87% is 57% below median its 10-year median of 6.60. The Business Services industry median WACC % is 7.32. Precise Biometrics AB's value of 2.87% is 60.8% below this industry median. Based on the distribution chart, Precise Biometrics AB ranks #33 out of 1114 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Precise Biometrics AB has a GF Score™ of 27/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Precise Biometrics AB's WACC % compare to ALLE and MSA?
According to the Business Services industry distribution chart, Precise Biometrics AB ranks #33 out of 1114 companies for WACC %. This places Precise Biometrics AB in the top 3% of its industry — outperforming the majority of peers. The industry median WACC % is 7.32. Precise Biometrics AB's value of 2.87% is 60.8% below this benchmark. While the company's 10-year median is 6.60 vs. the industry median of 7.32, Precise Biometrics AB 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 Business Services company?
The median WACC % among Business Services companies is 7.32, based on 1,114 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. Precise Biometrics AB's current WACC % of 2.87% is 60.8% 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 Precise Biometrics AB and its competitors. For the Business Services industry, the median WACC % is 7.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precise Biometrics AB's current WACC % is 2.87%, which is 57% below median its own 10-year median of 6.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precise Biometrics AB stock overvalued right now?
Based on GuruFocus' analysis, Precise Biometrics AB (PRBCF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.24, compared to a current price of $0.18 — trading 25% below its estimated fair value. The current WACC % is 2.87%, which is 57% below median its 10-year median of 6.60 and 60.8% below the Business Services industry median of 7.32. Precise Biometrics AB's overall GF Score™ is 27/100 with 4 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 Precise Biometrics AB (PRBCF), the current WACC % is 2.87% 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 Precise Biometrics AB (PRBCF) Overvalued in 2026?
Based on GuruFocus' analysis, Precise Biometrics AB stock appears to be undervalued.
The current stock price of $0.18 is trading 25% below its estimated GF Value™ of $0.24.
GuruFocus considers Precise Biometrics AB to be Modestly Undervalued.
Key valuation signals for PRBCF:
WACC %: 2.87% (57% below median its 10-year median of 6.60)
GF Value™: $0.24 vs. price of $0.18 (25% below fair value)
Industry Position: 60.8% below the Business Services median (#33 of 1114)
No single metric tells the full story. See the PRBCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precise Biometrics AB is engaged in the business of developing and selling identification software for the authentication of people's identity in mobile phones, laptops, smart cards, and products with sensors. The company has two product segments: Digital Identity and Biometric Technologies. In the Biometric Technologies segment which generates key revenue, the company licenses, among other things, its fingerprint software to sensor manufacturers and includes products like BioMatch, BioLive, and BioEnhance. The Digital Identity segment offers system solutions for visitor management and physical biometric access. The company provides premium solutions that enable secure and seamless access to data, mobile devices, premises, and trusted identities.
27GF Score
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