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River City BankRCBC -0.70%67 WACC % is 7.32% as of Jul. 30, 2026, which is 17% above its 10-year median of 6.25. GuruFocus rates RCBC with a GF Score™ of 67/100 and a GF Value™ of $32.12 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,542 Banks companies, River City Bank ranks better than 81.65% on this metric.
As of today (2026-07-30), River City Bank's weighted average cost of capital is 7.32%%. River City Bank's ROIC % is 0.00% (calculated using TTM income statement data).
River City Bank 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.
River City Bank (OTCPK:RCBC) 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, River City Bank's weighted average cost of capital is 7.32%%. River City Bank's ROIC % is 0.00% (calculated using TTM income statement data).
River City Bank 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 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 annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
Related Terms
River City Bank WACC % Historical Data
* Premium members only.
The historical data trend for River City Bank'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 Banks - Regional subindustry, River City Bank'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.
River City Bank WACC % vs Banks Industry
For the Banks industry and Financial Services sector, River City Bank's WACC % distribution charts can be found below:
* The bar in red indicates where River City Bank'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, River City Bank's market capitalization (E) is $673.533 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 annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, River City Bank's latest one-year annual average Book Value of Debt (D) is $0 Mil.
a) weight of equity = E / (E + D) = 673.533 / (673.533 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (673.533 + 0) = 0
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 4.683%. 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. River City Bank's beta is 0.4387.
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 = 4.683% + 0.4387 * 6% = 7.3152%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Dec. 2025, River City Bank's interest expense (positive number) was $140.429 Mil. Its total Book Value of Debt (D) is $0 Mil.
Cost of Debt = 140.429 / 0 = %.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual 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 annual Tax Rate = 26.676 / 95.091 = 28.05%.
River City Bank'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)
=
1
*
7.3152%
+
0
*
%
*
(1 - 28.05%)
=
7.32%
* 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.
River City Bank (RCBC) has a WACC % of 7.32% as of Jul. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on River City Bank and its competitors. This is 17% above median its historical median of 6.25. Over the past decade, River City Bank's WACC % has ranged from 1.57 to 19.71. According to the industry distribution chart, River City Bank ranks #283 out of 1542 companies in the Banks industry, placing it in the top 18.4%.
Is River City Bank's WACC % too high?
River City Bank's current WACC % of 7.32% is 17% above median its 10-year median of 6.25. Over the past 10 years, this metric has ranged from a low of 1.57 to a high of 19.71. The Banks industry median WACC % is 13.13. River City Bank's value of 7.32% is 44.2% below this industry median. Based on the distribution chart, River City Bank ranks #283 out of 1542 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, River City Bank has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does River City Bank's WACC % compare to CWBC and BCAL?
According to the Banks industry distribution chart, River City Bank ranks #283 out of 1542 companies for WACC %. This places River City Bank in the top 18% of its industry — outperforming the majority of peers. The industry median WACC % is 13.13. River City Bank's value of 7.32% is 44.2% below this benchmark. Historically, River City Bank's own WACC % has ranged from 1.57 to 19.71 over the past decade. While the company's 10-year median is 6.25 vs. the industry median of 13.13, River City Bank 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 Banks company?
The median WACC % among Banks companies is 13.13, based on 1,542 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. River City Bank's current WACC % of 7.32% is 44.2% 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 River City Bank and its competitors. For the Banks industry, the median WACC % is 13.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. River City Bank's current WACC % is 7.32%, which is 17% above median its own 10-year median of 6.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is River City Bank stock overvalued right now?
Based on GuruFocus' analysis, River City Bank (RCBC) is currently considered Significantly Overvalued. The stock's GF Value™ is $32.12, compared to a current price of $47.19 — trading 46.9% above its estimated fair value. The current WACC % is 7.32%, which is 17% above median its 10-year median of 6.25 and 44.2% below the Banks industry median of 13.13. River City Bank's overall GF Score™ is 67/100 with 5 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 River City Bank (RCBC), the current WACC % is 7.32% as of Jul. 30, 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 River City Bank (RCBC) Overvalued in 2026?
Based on GuruFocus' analysis, River City Bank stock appears to be overvalued.
The current stock price of $47.19 is trading 46.9% above its estimated GF Value™ of $32.12.
GuruFocus considers River City Bank to be Significantly Overvalued.
Key valuation signals for RCBC:
WACC %: 7.32% (17% above median its 10-year median of 6.25)
GF Value™: $32.12 vs. price of $47.19 (46.9% above fair value)
Industry Position: 44.2% below the Banks median (#283 of 1542)
No single metric tells the full story. See the RCBC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
River City Bank is a California state-chartered bank engaged in providing a range of banking services to individuals and businesses in California. The company's primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are commercial real estate, commercial, agriculture, residential mortgage, and consumer loans. Substantially all loans are secured by specific items of collateral, including business assets, consumer assets, and commercial and residential real estate in the Western United States.
67GF Score
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