What is Shanghai Fudan Microelectronics Group Co WACC %?
Shanghai Fudan Microelectronics Group CoSFDMF 71 WACC % is 10.14% as of Jun. 24, 2026, which is 30% above its 10-year median of 7.83. GuruFocus rates SFDMF with a GF Score™ of 71/100 and a GF Value™ of $3.26 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,032 Semiconductors companies, Shanghai Fudan Microelectronics Group Co ranks worse than 92.05% on this metric.
As of today (2026-06-24), Shanghai Fudan Microelectronics Group Co's weighted average cost of capital is 10.14%%. Shanghai Fudan Microelectronics Group Co's ROIC % is 9.62% (calculated using TTM income statement data).
Shanghai Fudan Microelectronics Group 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.
Shanghai Fudan Microelectronics Group Co (OTCPK:SFDMF) 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, Shanghai Fudan Microelectronics Group Co's weighted average cost of capital is 10.14%%. Shanghai Fudan Microelectronics Group Co's ROIC % is 9.62% (calculated using TTM income statement data).
Shanghai Fudan Microelectronics Group 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 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
Shanghai Fudan Microelectronics Group Co 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.
Shanghai Fudan Microelectronics Group Co WACC % Chart
Shanghai Fudan Microelectronics Group Co Annual Data
For the Semiconductors subindustry, Shanghai Fudan Microelectronics Group 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.
Shanghai Fudan Microelectronics Group Co WACC % vs Semiconductors Industry
Shanghai Fudan Microelectronics Group 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, Shanghai Fudan Microelectronics Group Co's market capitalization (E) is $5860.464 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, Shanghai Fudan Microelectronics Group Co's latest one-year quarterly average Book Value of Debt (D) is $204.368 Mil.
a) weight of equity = E / (E + D) = 5860.464 / (5860.464 + 204.368) = 0.9663
b) weight of debt = D / (E + D) = 204.368 / (5860.464 + 204.368) = 0.0337
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 4.402%. 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. Shanghai Fudan Microelectronics Group 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 = 4.402% + 1 * 6% = 10.402%
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, Shanghai Fudan Microelectronics Group Co's interest expense (positive number) was $5.324 Mil. Its total Book Value of Debt (D) is $204.368 Mil.
Cost of Debt = 5.324 / 204.368 = 2.6051%.
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 = 0.112 / 27.873 = 0.4%.
* 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.
Shanghai Fudan Microelectronics Group Co (SFDMF) has a WACC % of 10.14% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Shanghai Fudan Microelectronics Group Co and its competitors. This is 30% above median its historical median of 7.83. Over the past decade, Shanghai Fudan Microelectronics Group Co's WACC % has ranged from 3.35 to 17.33. According to the industry distribution chart, Shanghai Fudan Microelectronics Group Co ranks #950 out of 1032 companies in the Semiconductors industry, placing it in the top 92.1%.
Is Shanghai Fudan Microelectronics Group Co's WACC % too high?
Shanghai Fudan Microelectronics Group Co's current WACC % of 10.14% is 30% above median its 10-year median of 7.83. Over the past 10 years, this metric has ranged from a low of 3.35 to a high of 17.33. The Semiconductors industry median WACC % is 9.48. Shanghai Fudan Microelectronics Group Co's value of 10.14% is 7% above this industry median. Based on the distribution chart, Shanghai Fudan Microelectronics Group Co ranks #950 out of 1032 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Shanghai Fudan Microelectronics Group Co has a GF Score™ of 71/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Fudan Microelectronics Group Co's WACC % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Shanghai Fudan Microelectronics Group Co ranks #950 out of 1032 companies for WACC %. This places Shanghai Fudan Microelectronics Group Co in the lower half of its industry. The industry median WACC % is 9.48. Shanghai Fudan Microelectronics Group Co's value of 10.14% is 7% above this benchmark. Historically, Shanghai Fudan Microelectronics Group Co's own WACC % has ranged from 3.35 to 17.33 over the past decade. While the company's 10-year median is 7.83 vs. the industry median of 9.48, Shanghai Fudan Microelectronics Group 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 Semiconductors company?
The median WACC % among Semiconductors companies is 9.48, based on 1,032 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. Shanghai Fudan Microelectronics Group Co's current WACC % of 10.14% is 7% 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 Shanghai Fudan Microelectronics Group Co and its competitors. For the Semiconductors industry, the median WACC % is 9.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Fudan Microelectronics Group Co's current WACC % is 10.14%, which is 30% above median its own 10-year median of 7.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Fudan Microelectronics Group Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Fudan Microelectronics Group Co (SFDMF) is currently considered Modestly Overvalued. The stock's GF Value™ is $3.26, compared to a current price of $3.88 — trading 19% above its estimated fair value. The current WACC % is 10.14%, which is 30% above median its 10-year median of 7.83 and 7% above the Semiconductors industry median of 9.48. Shanghai Fudan Microelectronics Group Co's overall GF Score™ is 71/100 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 Shanghai Fudan Microelectronics Group Co (SFDMF), the current WACC % is 10.14% as of Jun. 24, 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 Shanghai Fudan Microelectronics Group Co (SFDMF) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Fudan Microelectronics Group Co stock appears to be overvalued.
The current stock price of $3.88 is trading 19% above its estimated GF Value™ of $3.26.
GuruFocus considers Shanghai Fudan Microelectronics Group Co to be Modestly Overvalued.
Key valuation signals for SFDMF:
WACC %: 10.14% (30% above median its 10-year median of 7.83)
GF Value™: $3.26 vs. price of $3.88 (19% above fair value)
Industry Position: 7% above the Semiconductors median (#950 of 1032)
No single metric tells the full story. See the SFDMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Fudan Microelectronics Group Co Business Description
Shanghai Fudan Microelectronics Group Co Ltd is a China-based company. Along with its subsidiaries, it is engaged in the design, development, and sale of integrated circuit products; and integrated circuit product testing services. The company is organised into business units based on products and services and has two reportable segments as follows: The design, development and sale of IC products segment (Design segment): Production of security and identification chips, non-volatile memory, smart meter chips, FPGAs, and other chips; and The provision of testing services for the IC products segment (Testing segment): IC chip and IC product testing services.
71GF Score
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