Etihad GO Telecom CoSAU:7040 -1.28%85 WACC % is 12.22% as of Jul. 08, 2026, which is 19% above its 10-year median of 10.31. GuruFocus rates SAU:7040 with a GF Score™ of 85/100 and a GF Value™ of ﷼134.28 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 373 Telecommunication Services companies, Etihad GO Telecom Co ranks worse than 86.06% on this metric.
As of today (2026-07-08), Etihad GO Telecom Co's weighted average cost of capital is 12.22%%. Etihad GO Telecom Co's ROIC % is 34.28% (calculated using TTM income statement data).
Etihad GO Telecom 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.
Etihad GO Telecom Co (SAU:7040) 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, Etihad GO Telecom Co's weighted average cost of capital is 12.22%%. Etihad GO Telecom Co's ROIC % is 34.28% (calculated using TTM income statement data).
Etihad GO Telecom 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 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.
* 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 Telecom Services subindustry, Etihad GO Telecom 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.
Etihad GO Telecom Co WACC % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Etihad GO Telecom Co's WACC % distribution charts can be found below:
* The bar in red indicates where Etihad GO Telecom 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, Etihad GO Telecom Co's market capitalization (E) is ﷼3003.891 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 Mar. 2026, Etihad GO Telecom Co's latest one-year quarterly average Book Value of Debt (D) is ﷼62.7368 Mil.
a) weight of equity = E / (E + D) = 3003.891 / (3003.891 + 62.7368) = 0.9795
b) weight of debt = D / (E + D) = 62.7368 / (3003.891 + 62.7368) = 0.0205
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 4.547%. 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. Etihad GO Telecom Co's beta is 1.1719.
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 = 4.547% + 1.1719 * 6% = 11.5784%
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 Mar. 2026, Etihad GO Telecom Co's interest expense (positive number) was ﷼28.295 Mil. Its total Book Value of Debt (D) is ﷼62.7368 Mil.
Cost of Debt = 28.295 / 62.7368 = 45.1011%.
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 = 15.472 / 293.75 = 5.27%.
Etihad GO Telecom 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)
=
0.9795
*
11.5784%
+
0.0205
*
45.1011%
*
(1 - 5.27%)
=
12.22%
* 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.
Etihad GO Telecom Co (SAU:7040) has a WACC % of 12.22% as of Jul. 08, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Etihad GO Telecom Co and its competitors. This is 19% above median its historical median of 10.31. Over the past decade, Etihad GO Telecom Co's WACC % has ranged from 3.54 to 13.30. According to the industry distribution chart, Etihad GO Telecom Co ranks #321 out of 373 companies in the Telecommunication Services industry, placing it in the top 86.1%.
Is Etihad GO Telecom Co's WACC % too high?
Etihad GO Telecom Co's current WACC % of 12.22% is 19% above median its 10-year median of 10.31. Over the past 10 years, this metric has ranged from a low of 3.54 to a high of 13.30. The Telecommunication Services industry median WACC % is 7.46. Etihad GO Telecom Co's value of 12.22% is 63.8% above this industry median. Based on the distribution chart, Etihad GO Telecom Co ranks #321 out of 373 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, Etihad GO Telecom Co has a GF Score™ of 85/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Etihad GO Telecom Co's WACC % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Etihad GO Telecom Co ranks #321 out of 373 companies for WACC %. This places Etihad GO Telecom Co in the lower half of its industry. The industry median WACC % is 7.46. Etihad GO Telecom Co's value of 12.22% is 63.8% above this benchmark. Historically, Etihad GO Telecom Co's own WACC % has ranged from 3.54 to 13.30 over the past decade. While the company's 10-year median is 10.31 vs. the industry median of 7.46, Etihad GO Telecom 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 Telecommunication Services company?
The median WACC % among Telecommunication Services companies is 7.46, based on 373 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. Etihad GO Telecom Co's current WACC % of 12.22% is 63.8% 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 Etihad GO Telecom Co and its competitors. For the Telecommunication Services industry, the median WACC % is 7.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Etihad GO Telecom Co's current WACC % is 12.22%, which is 19% above median its own 10-year median of 10.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Etihad GO Telecom Co stock overvalued right now?
Based on GuruFocus' analysis, Etihad GO Telecom Co (SAU:7040) is currently considered Significantly Undervalued. The stock's GF Value™ is ﷼134.28, compared to a current price of ﷼88.35 — trading 34.2% below its estimated fair value. The current WACC % is 12.22%, which is 19% above median its 10-year median of 10.31 and 63.8% above the Telecommunication Services industry median of 7.46. Etihad GO Telecom Co's overall GF Score™ is 85/100 with 1 warning sign 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 Etihad GO Telecom Co (SAU:7040), the current WACC % is 12.22% as of Jul. 08, 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 Etihad GO Telecom Co (SAU:7040) Overvalued in 2026?
Based on GuruFocus' analysis, Etihad GO Telecom Co stock appears to be undervalued.
The current stock price of ﷼88.35 is trading 34.2% below its estimated GF Value™ of ﷼134.28.
GuruFocus considers Etihad GO Telecom Co to be Significantly Undervalued.
Key valuation signals for SAU:7040:
WACC %: 12.22% (19% above median its 10-year median of 10.31)
GF Value™: ﷼134.28 vs. price of ﷼88.35 (34.2% below fair value)
Industry Position: 63.8% above the Telecommunication Services median (#321 of 373)
No single metric tells the full story. See the SAU:7040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Etihad GO Telecom Co offers a variety of fixed and wireless telecommunications services, such as voice services, data services, broadband internet services, internet telephony services, international gateway services, and landline phone services for individuals, households, and businesses. Its segments are Data services, Voice, Unallocated, and Systems Analysis, Application Design and Development Services. The company generates majority of revenue from Data services comprise of internet broadband services provided to business-to-business (B2B) and business-to-consumer (B2C). The company has presence in Kingdom of Saudi Arabia, and Outside Saudi Arabia. It generates majority of revenue from Kingdom of Saudi Arabia.
85GF Score
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