Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Cherry Trading CoSAU:4265 -1.02%13 WACC % is 8.53% as of Aug. 10, 2026, which is 23% above its 10-year median of 6.91. GuruFocus rates SAU:4265 with a GF Score™ of 13/100. The stock has 4 warning signs investors should review. Among 1,114 Business Services companies, Cherry Trading Co ranks worse than 61.94% on this metric.
As of today (2026-08-10), Cherry Trading Co's weighted average cost of capital is 8.53%%. Cherry Trading Co's ROIC % is 8.33% (calculated using TTM income statement data).
Cherry Trading Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
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, Cherry Trading Co's weighted average cost of capital is 8.53%%. Cherry Trading Co's ROIC % is 8.33% (calculated using TTM income statement data).
Cherry Trading Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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
Cherry Trading Co WACC % Historical Data
* Premium members only.
The historical data trend for Cherry Trading 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.
Cherry Trading Co WACC % Chart
Cherry Trading Co Annual Data
Trend
Dec24
Dec25
WACC %
0.00
0.00
Cherry Trading Co Semi-Annual Data
Dec24
Dec25
WACC %
0.00
0.00
SAU:4265 vs URI, SUNB, AER: WACC % Comparison
For the Rental & Leasing Services subindustry, Cherry Trading 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.
Cherry Trading Co WACC % vs Business Services Industry
For the Business Services industry and Industrials sector, Cherry Trading Co's WACC % distribution charts can be found below:
* The bar in red indicates where Cherry Trading Co'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, Cherry Trading Co's market capitalization (E) is ﷼696.000 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, Cherry Trading Co's latest one-year annual average Book Value of Debt (D) is ﷼856.332 Mil.
a) weight of equity = E / (E + D) = 696.000 / (696.000 + 856.332) = 0.4484
b) weight of debt = D / (E + D) = 856.332 / (696.000 + 856.332) = 0.5516
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 4.705%. 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. Cherry Trading Co's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 = 4.705% + 1 * 6% = 10.705%
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, Cherry Trading Co's interest expense (positive number) was ﷼59.293 Mil. Its total Book Value of Debt (D) is ﷼856.332 Mil.
Cost of Debt = 59.293 / 856.332 = 6.9241%.
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 = 1.638 / 72.675 = 2.25%.
Cherry Trading 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)
=
0.4484
*
10.705%
+
0.5516
*
6.9241%
*
(1 - 2.25%)
=
8.53%
* 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.
Cherry Trading Co (SAU:4265) has a WACC % of 8.53% as of Aug. 10, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Cherry Trading Co and its competitors. This is 23% above median its historical median of 6.91. Over the past decade, Cherry Trading Co's WACC % has ranged from 5.50 to 8.52. According to the industry distribution chart, Cherry Trading Co ranks #690 out of 1114 companies in the Business Services industry, placing it in the top 61.9%.
Is Cherry Trading Co's WACC % too high?
Cherry Trading Co's current WACC % of 8.53% is 23% above median its 10-year median of 6.91. Over the past 10 years, this metric has ranged from a low of 5.50 to a high of 8.52. The Business Services industry median WACC % is 7.15. Cherry Trading Co's value of 8.53% is 19.3% above this industry median. Based on the distribution chart, Cherry Trading Co ranks #690 out of 1114 companies in the Business Services industry, which is below the industry midpoint. Overall, Cherry Trading Co has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Cherry Trading Co's WACC % compare to URI and SUNB?
According to the Business Services industry distribution chart, Cherry Trading Co ranks #690 out of 1114 companies for WACC %. This places Cherry Trading Co in the lower half of its industry. The industry median WACC % is 7.15. Cherry Trading Co's value of 8.53% is 19.3% above this benchmark. Historically, Cherry Trading Co's own WACC % has ranged from 5.50 to 8.52 over the past decade. While the company's 10-year median is 6.91 vs. the industry median of 7.15, Cherry Trading Co 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 Business Services company?
The median WACC % among Business Services companies is 7.15, 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. Cherry Trading Co's current WACC % of 8.53% is 19.3% 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 Cherry Trading Co and its competitors. For the Business Services industry, the median WACC % is 7.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cherry Trading Co's current WACC % is 8.53%, which is 23% above median its own 10-year median of 6.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cherry Trading Co stock overvalued right now?
Cherry Trading Co (SAU:4265) has a current WACC % of 8.53%. The current WACC % is 8.53%, which is 23% above median its 10-year median of 6.91 and 19.3% above the Business Services industry median of 7.15. Cherry Trading Co's overall GF Score™ is 13/100 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 Cherry Trading Co (SAU:4265), the current WACC % is 8.53% as of Aug. 10, 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.
Cherry Trading Co is engaged in wholesale and retail trade of new and used private cars, car service and maintenance center activities, public fare and school transportation, real estate management for commission, and passenger car rental. The company also provides crane rental with operator, rental and operational leasing of passenger cars, trucks, utility trailers, recreational vehicles, buses, electronic car rental, machine tools, public taxi, educational transport, light goods transport, and wholesale and retail sale of used specialized passenger vehicles, including ambulances, minibuses, and jeeps. The group operates through three segments: Long-Term Lease, Short-Term Rental, and Sales of Motor Vehicles, with the Long-Term Lease segment generating the maximum revenue.
13GF Score
Get the complete analysis for SAU:4265
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SAU:4265 has been successfully added to your 
