Duty Free InternationalSGX:5SO WACC % is 11.77% as of Jul. 12, 2026, which is 137% above its 10-year median of 4.96. The stock has 5 warning signs investors should review. Among 1,139 Retail - Cyclical companies, Duty Free International ranks worse than 82.88% on this metric.
As of today (2026-07-12), Duty Free International's weighted average cost of capital is 11.77%%. Duty Free International's ROIC % is 2.92% (calculated using TTM income statement data).
Duty Free 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.
Duty Free International (SGX:5SO) 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, Duty Free International's weighted average cost of capital is 11.77%%. Duty Free International's ROIC % is 2.92% (calculated using TTM income statement data).
Duty Free 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 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 Specialty Retail subindustry, Duty Free 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.
Duty Free International WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Duty Free International's WACC % distribution charts can be found below:
* The bar in red indicates where Duty Free International'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, Duty Free International's market capitalization (E) is S$77.883 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 Feb. 2026, Duty Free International's latest one-year quarterly average Book Value of Debt (D) is S$26.2668 Mil.
a) weight of equity = E / (E + D) = 77.883 / (77.883 + 26.2668) = 0.7478
b) weight of debt = D / (E + D) = 26.2668 / (77.883 + 26.2668) = 0.2522
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 4.561%. 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. Duty Free International's beta is 1.6020.
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 = 4.561% + 1.6020 * 6% = 14.173%
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 Feb. 2026, Duty Free International's interest expense (positive number) was S$1.942 Mil. Its total Book Value of Debt (D) is S$26.2668 Mil.
Cost of Debt = 1.942 / 26.2668 = 7.3934%.
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 = 4.211 / 11.312 = 37.23%.
Duty Free 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)
=
0.7478
*
14.173%
+
0.2522
*
7.3934%
*
(1 - 37.23%)
=
11.77%
* 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.
Duty Free International (SGX:5SO) has a WACC % of 11.77% as of Jul. 12, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Duty Free International and its competitors. This is 137% above median its historical median of 4.96. Over the past decade, Duty Free International's WACC % has ranged from 0.81 to 11.77. According to the industry distribution chart, Duty Free International ranks #944 out of 1139 companies in the Retail - Cyclical industry, placing it in the top 82.9%.
Is Duty Free International's WACC % too high?
Duty Free International's current WACC % of 11.77% is 137% above median its 10-year median of 4.96. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 11.77. The Retail - Cyclical industry median WACC % is 7.57. Duty Free International's value of 11.77% is 55.5% above this industry median. Based on the distribution chart, Duty Free International ranks #944 out of 1139 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers.
How does Duty Free International's WACC % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Duty Free International ranks #944 out of 1139 companies for WACC %. This places Duty Free International in the lower half of its industry. The industry median WACC % is 7.57. Duty Free International's value of 11.77% is 55.5% above this benchmark. Historically, Duty Free International's own WACC % has ranged from 0.81 to 11.77 over the past decade. While the company's 10-year median is 4.96 vs. the industry median of 7.57, Duty Free International 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 Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.57, based on 1,139 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. Duty Free International's current WACC % of 11.77% is 55.5% 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 Duty Free International and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Duty Free International's current WACC % is 11.77%, which is 137% above median its own 10-year median of 4.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Duty Free International stock overvalued right now?
Based on GuruFocus' analysis, Duty Free International (SGX:5SO) is currently considered Significantly Undervalued. The stock's GF Value™ is S$0.13, compared to a current price of S$0.07 — trading 50% below its estimated fair value. The current WACC % is 11.77%, which is 137% above median its 10-year median of 4.96 and 55.5% above the Retail - Cyclical industry median of 7.57. 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 Duty Free International (SGX:5SO), the current WACC % is 11.77% as of Jul. 12, 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.
Duty Free International Ltd is a diversified group engaged in the operations of duty-free retail businesses and the manufacture of automotive component parts. Its segments include Trading of duty free goods and non-dutiable merchandise includes revenues from sale of goods, Manufacturing and supplying of automotive component parts includes revenues from sale of goods, and Investment holding and others includes revenues from sale of oil palm fresh fruit bunches. The majority of revenue is derived from Trading of duty free goods and non-dutiable merchandise segment. Beyond its core businesses, DFI also owns the Black Forest Golf and Country Club and oil palm plantation assets. The activities of the company are carried out mainly in Malaysia.
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