Chemical Works of Gedeon RichterRGEDF -1.78%94 WACC % is 10.22% as of Jun. 27, 2026, which is 7% above its 10-year median of 9.52. GuruFocus rates RGEDF with a GF Score™ of 94/100 and a GF Value™ of $36.19 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,020 Drug Manufacturers companies, Chemical Works of Gedeon Richter ranks worse than 77.84% on this metric.
As of today (2026-06-27), Chemical Works of Gedeon Richter's weighted average cost of capital is 10.22%%. Chemical Works of Gedeon Richter's ROIC % is 9.63% (calculated using TTM income statement data).
Chemical Works of Gedeon Richter 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.
Chemical Works of Gedeon Richter (OTCPK:RGEDF) 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, Chemical Works of Gedeon Richter's weighted average cost of capital is 10.22%%. Chemical Works of Gedeon Richter's ROIC % is 9.63% (calculated using TTM income statement data).
Chemical Works of Gedeon Richter 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.
Related Terms
Chemical Works of Gedeon Richter WACC % Historical Data
* 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 Drug Manufacturers - Specialty & Generic subindustry, Chemical Works of Gedeon Richter'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.
Chemical Works of Gedeon Richter WACC % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Chemical Works of Gedeon Richter's WACC % distribution charts can be found below:
* The bar in red indicates where Chemical Works of Gedeon Richter's WACC % falls into.
Chemical Works of Gedeon Richter WACC % Calculation
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, Chemical Works of Gedeon Richter's market capitalization (E) is $7134.488 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 Dec. 2025, Chemical Works of Gedeon Richter's latest one-year quarterly average Book Value of Debt (D) is $78.9068 Mil.
a) weight of equity = E / (E + D) = 7134.488 / (7134.488 + 78.9068) = 0.9891
b) weight of debt = D / (E + D) = 78.9068 / (7134.488 + 78.9068) = 0.0109
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 5.65%. 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. Chemical Works of Gedeon Richter's beta is 0.7303.
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 = 5.65% + 0.7303 * 6% = 10.0318%
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 Dec. 2025, Chemical Works of Gedeon Richter's interest expense (positive number) was $26.2 Mil. Its total Book Value of Debt (D) is $78.9068 Mil.
Cost of Debt = 26.2 / 78.9068 = 33.2037%.
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 = 108.832 / 632.8867 = 17.2%.
* 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.
Chemical Works of Gedeon Richter (RGEDF) has a WACC % of 10.22% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Chemical Works of Gedeon Richter and its competitors. This is near median its historical median of 9.52. Over the past decade, Chemical Works of Gedeon Richter's WACC % has ranged from 7.79 to 13.99. According to the industry distribution chart, Chemical Works of Gedeon Richter ranks #794 out of 1020 companies in the Drug Manufacturers industry, placing it in the top 77.8%.
Is Chemical Works of Gedeon Richter's WACC % too high?
Chemical Works of Gedeon Richter's current WACC % of 10.22% is near median its 10-year median of 9.52. Over the past 10 years, this metric has ranged from a low of 7.79 to a high of 13.99. The Drug Manufacturers industry median WACC % is 8.90. Chemical Works of Gedeon Richter's value of 10.22% is 14.8% above this industry median. Based on the distribution chart, Chemical Works of Gedeon Richter ranks #794 out of 1020 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Chemical Works of Gedeon Richter has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemical Works of Gedeon Richter's WACC % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Chemical Works of Gedeon Richter ranks #794 out of 1020 companies for WACC %. This places Chemical Works of Gedeon Richter in the lower half of its industry. The industry median WACC % is 8.90. Chemical Works of Gedeon Richter's value of 10.22% is 14.8% above this benchmark. Historically, Chemical Works of Gedeon Richter's own WACC % has ranged from 7.79 to 13.99 over the past decade. While the company's 10-year median is 9.52 vs. the industry median of 8.90, Chemical Works of Gedeon Richter 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 Drug Manufacturers company?
The median WACC % among Drug Manufacturers companies is 8.90, based on 1,020 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. Chemical Works of Gedeon Richter's current WACC % of 10.22% is 14.8% 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 Chemical Works of Gedeon Richter and its competitors. For the Drug Manufacturers industry, the median WACC % is 8.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemical Works of Gedeon Richter's current WACC % is 10.22%, which is near median its own 10-year median of 9.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemical Works of Gedeon Richter stock overvalued right now?
Based on GuruFocus' analysis, Chemical Works of Gedeon Richter (RGEDF) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.19, compared to a current price of $39.59 — trading 9.4% above its estimated fair value. The current WACC % is 10.22%, which is near median its 10-year median of 9.52 and 14.8% above the Drug Manufacturers industry median of 8.90. Chemical Works of Gedeon Richter's overall GF Score™ is 94/100 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 Chemical Works of Gedeon Richter (RGEDF), the current WACC % is 10.22% as of Jun. 27, 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 Chemical Works of Gedeon Richter (RGEDF) Overvalued in 2026?
Based on GuruFocus' analysis, Chemical Works of Gedeon Richter stock appears to be overvalued.
The current stock price of $39.59 is trading 9.4% above its estimated GF Value™ of $36.19.
GuruFocus considers Chemical Works of Gedeon Richter to be Modestly Overvalued.
Key valuation signals for RGEDF:
WACC %: 10.22% (near median its 10-year median of 9.52)
GF Value™: $36.19 vs. price of $39.59 (9.4% above fair value)
Industry Position: 14.8% above the Drug Manufacturers median (#794 of 1020)
No single metric tells the full story. See the RGEDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemical Works of Gedeon Richter Business Description
Chemical Works of Gedeon Richter PLC is a pharmaceutical company. The company focuses on the development and manufacture of gynaecological, cardiovascular, and central nervous system products. It manufactures medicines including original, generic and licensed products for treatment in the therapeutic area. The group is active in two business segments namely, the Pharma segment comprising Women's Healthcare, Neuropsychiatry, Biotechnology, General Medicine, and Other pharma; and the Others segment includes the remaining wholesale and retail business of the Group and all other activities. The company operates internationally.
94GF Score
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