Raffles Medical GroupRAFLF 57 WACC % is 3.21% as of Jul. 01, 2026, which is 45% below its 10-year median of 5.85. GuruFocus rates RAFLF with a GF Score™ of 57/100 and a GF Value™ of $0.75 (Fairly Valued). The stock has 4 warning signs investors should review. Among 692 Healthcare Providers & Services companies, Raffles Medical Group ranks worse than 51.16% on this metric.
As of today (2026-07-01), Raffles Medical Group's weighted average cost of capital is 3.21%%. Raffles Medical Group's ROIC % is 6.27% (calculated using TTM income statement data).
Raffles Medical Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Raffles Medical Group (OTCPK:RAFLF) 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, Raffles Medical Group's weighted average cost of capital is 3.21%%. Raffles Medical Group's ROIC % is 6.27% (calculated using TTM income statement data).
Raffles Medical Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
* 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 Medical Care Facilities subindustry, Raffles Medical Group'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.
Raffles Medical Group WACC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Raffles Medical Group's WACC % distribution charts can be found below:
* The bar in red indicates where Raffles Medical Group'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, Raffles Medical Group's market capitalization (E) is $1293.441 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 Dec. 2025, Raffles Medical Group's latest one-year semi-annual average Book Value of Debt (D) is $66.1297 Mil.
a) weight of equity = E / (E + D) = 1293.441 / (1293.441 + 66.1297) = 0.9514
b) weight of debt = D / (E + D) = 66.1297 / (1293.441 + 66.1297) = 0.0486
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 4.481%. 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. Raffles Medical Group's beta is -0.2162.
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 = 4.481% + -0.2162 * 6% = 3.1838%
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 Dec. 2025, Raffles Medical Group's interest expense (positive number) was $3.183 Mil. Its total Book Value of Debt (D) is $66.1297 Mil.
Cost of Debt = 3.183 / 66.1297 = 4.8133%.
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 = 17.507 / 72.732 = 24.07%.
Raffles Medical Group'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)
=
0.9514
*
3.1838%
+
0.0486
*
4.8133%
*
(1 - 24.07%)
=
3.21%
* 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.
Raffles Medical Group (RAFLF) has a WACC % of 3.21% as of Jul. 01, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Raffles Medical Group and its competitors. This is 45% below median its historical median of 5.85. Over the past decade, Raffles Medical Group's WACC % has ranged from 2.96 to 9.19. According to the industry distribution chart, Raffles Medical Group ranks #354 out of 692 companies in the Healthcare Providers & Services industry, placing it in the top 51.2%.
Is Raffles Medical Group's WACC % too high?
Raffles Medical Group's current WACC % of 3.21% is 45% below median its 10-year median of 5.85. Over the past 10 years, this metric has ranged from a low of 2.96 to a high of 9.19. The Healthcare Providers & Services industry median WACC % is 8.50. Raffles Medical Group's value of 3.21% is 62.2% below this industry median. Based on the distribution chart, Raffles Medical Group ranks #354 out of 692 companies in the Healthcare Providers & Services industry, which is below the industry midpoint. Overall, Raffles Medical Group has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Raffles Medical Group's WACC % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Raffles Medical Group ranks #354 out of 692 companies for WACC %. This places Raffles Medical Group in the lower half of its industry. The industry median WACC % is 8.50. Raffles Medical Group's value of 3.21% is 62.2% below this benchmark. Historically, Raffles Medical Group's own WACC % has ranged from 2.96 to 9.19 over the past decade. While the company's 10-year median is 5.85 vs. the industry median of 8.50, Raffles Medical Group 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 Healthcare Providers & Services company?
The median WACC % among Healthcare Providers & Services companies is 8.50, based on 692 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. Raffles Medical Group's current WACC % of 3.21% is 62.2% 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 Raffles Medical Group and its competitors. For the Healthcare Providers & Services industry, the median WACC % is 8.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Raffles Medical Group's current WACC % is 3.21%, which is 45% below median its own 10-year median of 5.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Raffles Medical Group stock overvalued right now?
Based on GuruFocus' analysis, Raffles Medical Group (RAFLF) is currently considered Fairly Valued. The stock's GF Value™ is $0.75, compared to a current price of $0.75 — trading 0.4% above its estimated fair value. The current WACC % is 3.21%, which is 45% below median its 10-year median of 5.85 and 62.2% below the Healthcare Providers & Services industry median of 8.50. Raffles Medical Group's overall GF Score™ is 57/100 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 Raffles Medical Group (RAFLF), the current WACC % is 3.21% as of Jul. 01, 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 Raffles Medical Group (RAFLF) Overvalued in 2026?
Based on GuruFocus' analysis, Raffles Medical Group stock appears to be overvalued.
The current stock price of $0.75 is trading 0.4% above its estimated GF Value™ of $0.75.
GuruFocus considers Raffles Medical Group to be Fairly Valued.
Key valuation signals for RAFLF:
WACC %: 3.21% (45% below median its 10-year median of 5.85)
GF Value™: $0.75 vs. price of $0.75 (0.4% above fair value)
Industry Position: 62.2% below the Healthcare Providers & Services median (#354 of 692)
No single metric tells the full story. See the RAFLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Raffles Medical Group Ltd is an integrated private healthcare provider in Asia with operations in Singapore, China, Japan, Vietnam, and Cambodia. The company owns and operates a tertiary hospital, a network of medical and dental clinics, insurance services, Japanese and Traditional Chinese Medicine clinics, and a consumer healthcare division. The company's operating segment includes Healthcare services, Hospital Services, Investment Holdings, and Insurance Services. The company generates revenue from contracts with customers, Rental Income, and Insurance revenue. Geographically operates in Singapore, Greater China, Vietnam, Cambodia and Japan.
57GF Score
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