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Fad International CoSAU:9589 19 WACC % is 10.07% as of Jul. 20, 2026, which is 3% above its 10-year median of 9.76. GuruFocus rates SAU:9589 with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 1,083 Manufacturing - Apparel & Accessories companies, Fad International Co ranks worse than 64.54% on this metric.
As of today (2026-07-20), Fad International Co's weighted average cost of capital is 10.07%%. Fad International Co's ROIC % is 17.10% (calculated using TTM income statement data).
Fad International 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.
*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.
Fad International Co (SAU:9589) 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, Fad International Co's weighted average cost of capital is 10.07%%. Fad International Co's ROIC % is 17.10% (calculated using TTM income statement data).
Fad International 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.
*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 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.
* 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 Apparel Manufacturing subindustry, Fad International 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.
Fad International Co WACC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Fad International Co's WACC % distribution charts can be found below:
* The bar in red indicates where Fad International 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, Fad International Co's market capitalization (E) is ﷼81.540 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, Fad International Co's latest one-year semi-annual average Book Value of Debt (D) is ﷼30.4157 Mil.
a) weight of equity = E / (E + D) = 81.540 / (81.540 + 30.4157) = 0.7283
b) weight of debt = D / (E + D) = 30.4157 / (81.540 + 30.4157) = 0.2717
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 4.58%. 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. Fad International 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 = 4.58% + 1 * 6% = 10.58%
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, Fad International Co's interest expense (positive number) was ﷼2.642 Mil. Its total Book Value of Debt (D) is ﷼30.4157 Mil.
Cost of Debt = 2.642 / 30.4157 = 8.6863%.
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 = -0.323 / 5.565 = -5.8%, which is less than 0%. Therefore it's set to 0%.
Fad International 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)
=
0.7283
*
10.58%
+
0.2717
*
8.6863%
*
(1 - 0%)
=
10.07%
* 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.
Fad International Co (SAU:9589) has a WACC % of 10.07% as of Jul. 20, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Fad International Co and its competitors. This is near median its historical median of 9.76. Over the past decade, Fad International Co's WACC % has ranged from 8.17 to 10.04. According to the industry distribution chart, Fad International Co ranks #699 out of 1083 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 64.5%.
Is Fad International Co's WACC % too high?
Fad International Co's current WACC % of 10.07% is near median its 10-year median of 9.76. Over the past 10 years, this metric has ranged from a low of 8.17 to a high of 10.04. The Manufacturing - Apparel & Accessories industry median WACC % is 8.48. Fad International Co's value of 10.07% is 18.8% above this industry median. Based on the distribution chart, Fad International Co ranks #699 out of 1083 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Fad International Co has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Fad International Co's WACC % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Fad International Co ranks #699 out of 1083 companies for WACC %. This places Fad International Co in the lower half of its industry. The industry median WACC % is 8.48. Fad International Co's value of 10.07% is 18.8% above this benchmark. Historically, Fad International Co's own WACC % has ranged from 8.17 to 10.04 over the past decade. While the company's 10-year median is 9.76 vs. the industry median of 8.48, Fad International 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 Manufacturing - Apparel & Accessories company?
The median WACC % among Manufacturing - Apparel & Accessories companies is 8.48, based on 1,083 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. Fad International Co's current WACC % of 10.07% is 18.8% 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 Fad International Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median WACC % is 8.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fad International Co's current WACC % is 10.07%, which is near median its own 10-year median of 9.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fad International Co stock overvalued right now?
Fad International Co (SAU:9589) has a current WACC % of 10.07%. The current WACC % is 10.07%, which is near median its 10-year median of 9.76 and 18.8% above the Manufacturing - Apparel & Accessories industry median of 8.48. Fad International Co's overall GF Score™ is 19/100 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 Fad International Co (SAU:9589), the current WACC % is 10.07% as of Jul. 20, 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.
Fad International Co is engaged in retail and wholesale trading of clothes, fabrics, bags, suitcases, shoes, and their accessories, leather products, artificial and natural perfumes, cosmetics, makeup and lotions, and sunglasses for men, women, and children. Currently, the Group is engaged in retail and wholesale of women's dresses and related accessories under the brand names Vivid Flair London and Femi9. It sells these products through a chain of retail stores and e-commerce channels. Geographically, the Group generates maximum revenue from its business in Saudi Arabia, and the rest from Bahrain, UAE, Egypt, and Qatar through exports.
19GF Score
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