Bedding World Co (ROCO:2938) WACC %:1.63% (As of Jul. 18, 2026) — 52% Below Median

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Director of Data and Quant Analytics at GuruFocus
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Founder & CEO of GuruFocus
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ROCO:2938 Bedding World Co Ltd ROCO:2938
70 GF Score
Price NT$25.20
GF Value NT$34.03
Valuation Modestly Undervalued
! 7 Warning Signs
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What is Bedding World Co WACC %?

Bedding World Co ROCO:2938 -4.00% 70 WACC % is 1.63% as of Jul. 18, 2026, which is 52% below its 10-year median of 3.43. GuruFocus rates ROCO:2938 with a GF Score™ of 70/100 and a GF Value™ of NT$34.03 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 443 Furnishings, Fixtures & Appliances companies, Bedding World Co ranks better than 97.74% on this metric.

As of today (2026-07-18), Bedding World Co's weighted average cost of capital is 1.63%%. Bedding World Co's ROIC % is 2.44% (calculated using TTM income statement data). Bedding World Co 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.


Bedding World Co  (ROCO:2938) 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, Bedding World Co's weighted average cost of capital is 1.63%%. Bedding World Co's ROIC % is 2.44% (calculated using TTM income statement data). Bedding World Co 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.


Related Terms

Bedding World Co WACC % Historical Data

* Premium members only.

The historical data trend for Bedding World Co'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.

Bedding World Co WACC % Chart

Bedding World Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
WACC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.28 3.41 3.03 3.44 4.74

Bedding World Co Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.03 3.62 3.44 5.52 4.74

ROCO:2938 vs SN, SGI, MHK: WACC % Comparison

For the Furnishings, Fixtures & Appliances subindustry, Bedding World Co'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.


Bedding World Co WACC % vs Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Bedding World Co's WACC % distribution charts can be found below:

* The bar in red indicates where Bedding World Co's WACC % falls into.


ROCO:2938
70GF Score
Bedding World Co Ltd ROCO:2938
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Bedding World Co 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, Bedding World Co's market capitalization (E) is NT$507.528 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, Bedding World Co's latest one-year semi-annual average Book Value of Debt (D) is NT$778.3383 Mil.
a) weight of equity = E / (E + D) = 507.528 / (507.528 + 778.3383) = 0.3947
b) weight of debt = D / (E + D) = 778.3383 / (507.528 + 778.3383) = 0.6053

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 4.551%. 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. Bedding World Co's beta is -0.4143.
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 = 4.551% + -0.4143 * 6% = 2.0652%

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, Bedding World Co's interest expense (positive number) was NT$13.684 Mil. Its total Book Value of Debt (D) is NT$778.3383 Mil.
Cost of Debt = 13.684 / 778.3383 = 1.7581%.

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 = 7.368 / 31.228 = 23.59%.

Bedding World Co'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)
=0.3947*2.0652%+0.6053*1.7581%*(1 - 23.59%)
=1.63%

* 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.

Frequently Asked Questions Learn more about WACC % →
What does a WACC % of 1.63% mean?
Bedding World Co (ROCO:2938) has a WACC % of 1.63% as of Jul. 18, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Bedding World Co and its competitors. This is 52% below median its historical median of 3.43. Over the past decade, Bedding World Co's WACC % has ranged from 1.32 to 6.11. According to the industry distribution chart, Bedding World Co ranks #10 out of 443 companies in the Furnishings, Fixtures & Appliances industry, placing it in the top 2.3%.
Is Bedding World Co's WACC % too high?
Bedding World Co's current WACC % of 1.63% is 52% below median its 10-year median of 3.43. Over the past 10 years, this metric has ranged from a low of 1.32 to a high of 6.11. The Furnishings, Fixtures & Appliances industry median WACC % is 8.56. Bedding World Co's value of 1.63% is 81% below this industry median. Based on the distribution chart, Bedding World Co ranks #10 out of 443 companies in the Furnishings, Fixtures & Appliances industry, which is in the top quartile — a strong position relative to peers. Overall, Bedding World Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bedding World Co's WACC % compare to SN and SGI?
According to the Furnishings, Fixtures & Appliances industry distribution chart, Bedding World Co ranks #10 out of 443 companies for WACC %. This places Bedding World Co in the top 2% of its industry — outperforming the majority of peers. The industry median WACC % is 8.56. Bedding World Co's value of 1.63% is 81% below this benchmark. Historically, Bedding World Co's own WACC % has ranged from 1.32 to 6.11 over the past decade. While the company's 10-year median is 3.43 vs. the industry median of 8.56, Bedding World Co 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 Furnishings, Fixtures & Appliances company?
The median WACC % among Furnishings, Fixtures & Appliances companies is 8.56, based on 443 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. Bedding World Co's current WACC % of 1.63% is 81% 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 Bedding World Co and its competitors. For the Furnishings, Fixtures & Appliances industry, the median WACC % is 8.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bedding World Co's current WACC % is 1.63%, which is 52% below median its own 10-year median of 3.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bedding World Co stock overvalued right now?
Based on GuruFocus' analysis, Bedding World Co (ROCO:2938) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$34.03, compared to a current price of NT$25.20 — trading 25.9% below its estimated fair value. The current WACC % is 1.63%, which is 52% below median its 10-year median of 3.43 and 81% below the Furnishings, Fixtures & Appliances industry median of 8.56. Bedding World Co's overall GF Score™ is 70/100 with 7 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 Bedding World Co (ROCO:2938), the current WACC % is 1.63% as of Jul. 18, 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 Bedding World Co (ROCO:2938) Overvalued in 2026?

Based on GuruFocus' analysis, Bedding World Co stock appears to be undervalued. The current stock price of NT$25.20 is trading 25.9% below its estimated GF Value™ of NT$34.03. GuruFocus considers Bedding World Co to be Modestly Undervalued.

Key valuation signals for ROCO:2938:

  • WACC %: 1.63% (52% below median its 10-year median of 3.43)
  • GF Value™: NT$34.03 vs. price of NT$25.20 (25.9% below fair value)
  • GF Score™: 70/100 with 7 warning signs
  • Industry Position: 81% below the Furnishings, Fixtures & Appliances median (#10 of 443)

No single metric tells the full story. See the ROCO:2938 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Bedding World Co Business Description

Address Number 88, Sec. 1, Jiuzong Road, Neihu District, Taipei City, TWN
Bedding World Co Ltd is a Taiwan based company mainly engaged in manufacturing of a variety of beds. The company's product offerings include Classic bed, National mattress, Grand Canyon, Statue of Liberty, Harvard and other brands of beds and other related stuff.
70GF Score

Get the complete analysis for ROCO:2938

WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$25.20
Price
NT$34.03
GF Value