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.
Choo Chiang HoldingsSGX:42E 62 WACC % is 5.34% as of Aug. 09, 2026, which is 7% below its 10-year median of 5.72. GuruFocus rates SGX:42E with a GF Score™ of 62/100 and a GF Value™ of S$0.39 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 2,512 Hardware companies, Choo Chiang Holdings ranks better than 68.51% on this metric.
As of today (2026-08-09), Choo Chiang Holdings's weighted average cost of capital is 5.34%%. Choo Chiang Holdings's ROIC % is 24.37% (calculated using TTM income statement data).
Choo Chiang Holdings 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.
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, Choo Chiang Holdings's weighted average cost of capital is 5.34%%. Choo Chiang Holdings's ROIC % is 24.37% (calculated using TTM income statement data).
Choo Chiang Holdings 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.
* 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 Electronics & Computer Distribution subindustry, Choo Chiang Holdings'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.
Choo Chiang Holdings WACC % vs Hardware Industry
For the Hardware industry and Technology sector, Choo Chiang Holdings's WACC % distribution charts can be found below:
* The bar in red indicates where Choo Chiang Holdings'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, Choo Chiang Holdings's market capitalization (E) is S$95.624 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, Choo Chiang Holdings's latest one-year semi-annual average Book Value of Debt (D) is S$3.2233 Mil.
a) weight of equity = E / (E + D) = 95.624 / (95.624 + 3.2233) = 0.9674
b) weight of debt = D / (E + D) = 3.2233 / (95.624 + 3.2233) = 0.0326
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 4.649%. 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. Choo Chiang Holdings's beta is 0.1293.
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 = 4.649% + 0.1293 * 6% = 5.4248%
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, Choo Chiang Holdings's interest expense (positive number) was S$0.108 Mil. Its total Book Value of Debt (D) is S$3.2233 Mil.
Cost of Debt = 0.108 / 3.2233 = 3.3506%.
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 = 1.963 / 11.48 = 17.1%.
Choo Chiang Holdings'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)
=
0.9674
*
5.4248%
+
0.0326
*
3.3506%
*
(1 - 17.1%)
=
5.34%
* 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.
Choo Chiang Holdings (SGX:42E) has a WACC % of 5.34% as of Aug. 09, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Choo Chiang Holdings and its competitors. This is near median its historical median of 5.72. Over the past decade, Choo Chiang Holdings' WACC % has ranged from 1.16 to 8.10. According to the industry distribution chart, Choo Chiang Holdings ranks #791 out of 2512 companies in the Hardware industry, placing it in the top 31.5%.
Is Choo Chiang Holdings' WACC % too high?
Choo Chiang Holdings' current WACC % of 5.34% is near median its 10-year median of 5.72. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 8.10. The Hardware industry median WACC % is 8.26. Choo Chiang Holdings' value of 5.34% is 35.4% below this industry median. Based on the distribution chart, Choo Chiang Holdings ranks #791 out of 2512 companies in the Hardware industry, which is above the industry midpoint. Overall, Choo Chiang Holdings has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Choo Chiang Holdings' WACC % compare to SNX and ARW?
According to the Hardware industry distribution chart, Choo Chiang Holdings ranks #791 out of 2512 companies for WACC %. This puts Choo Chiang Holdings in the upper half of its industry. The industry median WACC % is 8.26. Choo Chiang Holdings' value of 5.34% is 35.4% below this benchmark. Historically, Choo Chiang Holdings' own WACC % has ranged from 1.16 to 8.10 over the past decade. While the company's 10-year median is 5.72 vs. the industry median of 8.26, Choo Chiang Holdings 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 Hardware company?
The median WACC % among Hardware companies is 8.26, based on 2,512 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. Choo Chiang Holdings's current WACC % of 5.34% is 35.4% 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 Choo Chiang Holdings and its competitors. For the Hardware industry, the median WACC % is 8.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choo Chiang Holdings's current WACC % is 5.34%, which is near median its own 10-year median of 5.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Choo Chiang Holdings stock overvalued right now?
Based on GuruFocus' analysis, Choo Chiang Holdings (SGX:42E) is currently considered Modestly Overvalued. The stock's GF Value™ is S$0.39, compared to a current price of S$0.46 — trading 17.9% above its estimated fair value. The current WACC % is 5.34%, which is near median its 10-year median of 5.72 and 35.4% below the Hardware industry median of 8.26. Choo Chiang Holdings' overall GF Score™ is 62/100 with 6 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 Choo Chiang Holdings (SGX:42E), the current WACC % is 5.34% as of Aug. 09, 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 Choo Chiang Holdings (SGX:42E) Overvalued in 2026?
Based on GuruFocus' analysis, Choo Chiang Holdings stock appears to be overvalued.
The current stock price of S$0.46 is trading 17.9% above its estimated GF Value™ of S$0.39.
GuruFocus considers Choo Chiang Holdings to be Modestly Overvalued.
Key valuation signals for SGX:42E:
WACC %: 5.34% (near median its 10-year median of 5.72)
GF Value™: S$0.39 vs. price of S$0.46 (17.9% above fair value)
Industry Position: 35.4% below the Hardware median (#791 of 2512)
No single metric tells the full story. See the SGX:42E stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Choo Chiang Holdings Ltd, along with its subsidiaries, operates as a retailer and distributor of electrical products and accessories. It operates through the distribution business and property investment segments. The distribution business segment, which generates key revenue, sells electrical products and accessories. The property investment segment holds investment properties. The company offers electrical cables & cable accessories, electrical wiring accessories, electrical circuit protection, earthing & lightning protection, cable support system, ventilating, wall-mounted & ceiling fans, power drills & handheld tools, luminaires, lamps, and accessories.
62GF Score
Get the complete analysis for SGX:42E
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
SGX:42E has been successfully added to your 
