Trek 2000 International (SGX:5AB) WACC %:5.59% (As of Jul. 25, 2026) — 81% Above Median

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Director of Data and Quant Analytics at GuruFocus
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SGX:5AB Trek 2000 International Ltd SGX:5AB
33 GF Score
Price S$0.26
GF Value S$0.08
Valuation Significantly Overvalued
! 2 Warning Signs
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What is Trek 2000 International WACC %?

Trek 2000 International SGX:5AB +6.25% 33 WACC % is 5.59% as of Jul. 25, 2026, which is 81% above its 10-year median of 3.08. GuruFocus rates SGX:5AB with a GF Score™ of 33/100 and a GF Value™ of S$0.08 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,515 Hardware companies, Trek 2000 International ranks better than 66.72% on this metric.

As of today (2026-07-25), Trek 2000 International's weighted average cost of capital is 5.59%%. Trek 2000 International's ROIC % is -49.32% (calculated using TTM income statement data). Trek 2000 International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

For a comprehensive WACC calculation, please access the WACC Calculator.


Trek 2000 International  (SGX:5AB) 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, Trek 2000 International's weighted average cost of capital is 5.59%%. Trek 2000 International's ROIC % is -49.32% (calculated using TTM income statement data). Trek 2000 International earns returns that do not match up to its cost of capital. It will destroy value as it grows.


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.


Related Terms

Trek 2000 International WACC % Historical Data

* Premium members only.

The historical data trend for Trek 2000 International'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.

Trek 2000 International WACC % Chart

Trek 2000 International Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
WACC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.54 9.98 1.39 -0.66 -1.54

Trek 2000 International Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.39 -0.35 -0.66 2.08 -1.54

SGX:5AB vs CSCO, CIEN, MSI: WACC % Comparison

For the Communication Equipment subindustry, Trek 2000 International'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.


Trek 2000 International WACC % vs Hardware Industry

For the Hardware industry and Technology sector, Trek 2000 International's WACC % distribution charts can be found below:

* The bar in red indicates where Trek 2000 International's WACC % falls into.


SGX:5AB
33GF Score
Trek 2000 International Ltd SGX:5AB
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Trek 2000 International 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, Trek 2000 International's market capitalization (E) is S$77.140 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, Trek 2000 International's latest one-year semi-annual average Book Value of Debt (D) is S$0.1973 Mil.
a) weight of equity = E / (E + D) = 77.140 / (77.140 + 0.1973) = 0.9974
b) weight of debt = D / (E + D) = 0.1973 / (77.140 + 0.1973) = 0.0026

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 4.681%. 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. Trek 2000 International's beta is 0.1531.
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 = 4.681% + 0.1531 * 6% = 5.5996%

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, Trek 2000 International's interest expense (positive number) was S$0.007 Mil. Its total Book Value of Debt (D) is S$0.1973 Mil.
Cost of Debt = 0.007 / 0.1973 = 3.5479%.

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 = -0.066 / 5.858 = -1.13%, which is less than 0%. Therefore it's set to 0%.

Trek 2000 International'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)
=0.9974*5.5996%+0.0026*3.5479%*(1 - 0%)
=5.59%

* 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.

Frequently Asked Questions Learn more about WACC % →
What does a WACC % of 5.59% mean?
Trek 2000 International (SGX:5AB) has a WACC % of 5.59% as of Jul. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Trek 2000 International and its competitors. This is 81% above median its historical median of 3.08. According to the industry distribution chart, Trek 2000 International ranks #837 out of 2515 companies in the Hardware industry, placing it in the top 33.3%.
Is Trek 2000 International's WACC % too high?
Trek 2000 International's current WACC % of 5.59% is 81% above median its 10-year median of 3.08. The Hardware industry median WACC % is 8.17. Trek 2000 International's value of 5.59% is 31.6% below this industry median. Based on the distribution chart, Trek 2000 International ranks #837 out of 2515 companies in the Hardware industry, which is above the industry midpoint. Overall, Trek 2000 International has a GF Score™ of 33/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Trek 2000 International's WACC % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Trek 2000 International ranks #837 out of 2515 companies for WACC %. This puts Trek 2000 International in the upper half of its industry. The industry median WACC % is 8.17. Trek 2000 International's value of 5.59% is 31.6% below this benchmark. While the company's 10-year median is 3.08 vs. the industry median of 8.17, Trek 2000 International 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 8.17, based on 2,515 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. Trek 2000 International's current WACC % of 5.59% is 31.6% 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 Trek 2000 International and its competitors. For the Hardware industry, the median WACC % is 8.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Trek 2000 International's current WACC % is 5.59%, which is 81% above median its own 10-year median of 3.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Trek 2000 International stock overvalued right now?
Based on GuruFocus' analysis, Trek 2000 International (SGX:5AB) is currently considered Significantly Overvalued. The stock's GF Value™ is S$0.08, compared to a current price of S$0.26 — trading 218.8% above its estimated fair value. The current WACC % is 5.59%, which is 81% above median its 10-year median of 3.08 and 31.6% below the Hardware industry median of 8.17. Trek 2000 International's overall GF Score™ is 33/100 with 2 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 Trek 2000 International (SGX:5AB), the current WACC % is 5.59% as of Jul. 25, 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 Trek 2000 International (SGX:5AB) Overvalued in 2026?

Based on GuruFocus' analysis, Trek 2000 International stock appears to be overvalued. The current stock price of S$0.26 is trading 218.8% above its estimated GF Value™ of S$0.08. GuruFocus considers Trek 2000 International to be Significantly Overvalued.

Key valuation signals for SGX:5AB:

  • WACC %: 5.59% (81% above median its 10-year median of 3.08)
  • GF Value™: S$0.08 vs. price of S$0.26 (218.8% above fair value)
  • GF Score™: 33/100 with 2 warning signs
  • Industry Position: 31.6% below the Hardware median (#837 of 2515)

No single metric tells the full story. See the SGX:5AB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Trek 2000 International Business Description

Address 30 Loyang Way No. 07-13/14/15, Loyang Industrial Estate, Singapore, SGP, 508769
Trek 2000 International Ltd is an investment holding company with ownership of a portfolio of intellectual property. Its segments include Customised solutions, Artificial intelligence of things, Artificial intelligence renewable energy solutions, and Corporate. The company's Interactive Consumer Solutions division is the key revenue generator. Its ICS solutions/products comprise Thumbdrive, Flucard, Security Solutions, and WiFi Memory Modules for embedded devices. It is focused on key markets like China/ Hong Kong and Taiwan, and Singapore, India, Malaysia, and Indonesia are its secondary markets.
33GF Score

Get the complete analysis for SGX:5AB

WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

S$0.26
Price
S$0.08
GF Value