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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.
Khong GuanSGX:K03 67 WACC % is 7.46% as of Jul. 20, 2026, which is 123% above its 10-year median of 3.35. GuruFocus rates SGX:K03 with a GF Score™ of 67/100 and a GF Value™ of S$1.02 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 317 Retail - Defensive companies, Khong Guan ranks worse than 58.36% on this metric.
As of today (2026-07-20), Khong Guan's weighted average cost of capital is 7.46%%. Khong Guan's ROIC % is 0.00% (calculated using TTM income statement data).
Khong Guan 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.
Khong Guan (SGX:K03) 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, Khong Guan's weighted average cost of capital is 7.46%%. Khong Guan's ROIC % is 0.00% (calculated using TTM income statement data).
Khong Guan 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
Khong Guan WACC % Historical Data
* Premium members only.
The historical data trend for Khong Guan'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.
For the Food Distribution subindustry, Khong Guan'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.
Khong Guan WACC % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Khong Guan's WACC % distribution charts can be found below:
* The bar in red indicates where Khong Guan'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, Khong Guan's market capitalization (E) is S$21.812 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 Jan. 2026, Khong Guan's latest one-year semi-annual average Book Value of Debt (D) is S$0.172 Mil.
a) weight of equity = E / (E + D) = 21.812 / (21.812 + 0.172) = 0.9922
b) weight of debt = D / (E + D) = 0.172 / (21.812 + 0.172) = 0.0078
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 4.594%. 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. Khong Guan's beta is 0.4868.
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 = 4.594% + 0.4868 * 6% = 7.5148%
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 Jan. 2026, Khong Guan's interest expense (positive number) was S$0.012 Mil. Its total Book Value of Debt (D) is S$0.172 Mil.
Cost of Debt = 0.012 / 0.172 = 6.9767%.
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 = 0.386 / 0.124 = 311.29%, which is higher than 100%. Therefore it's set to 100%.
Khong Guan'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)
=
0.9922
*
7.5148%
+
0.0078
*
6.9767%
*
(1 - 100%)
=
7.46%
* 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.
Khong Guan (SGX:K03) has a WACC % of 7.46% 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 Khong Guan and its competitors. This is 123% above median its historical median of 3.35. Over the past decade, Khong Guan's WACC % has ranged from 1.12 to 7.41. According to the industry distribution chart, Khong Guan ranks #185 out of 317 companies in the Retail - Defensive industry, placing it in the top 58.4%.
Is Khong Guan's WACC % too high?
Khong Guan's current WACC % of 7.46% is 123% above median its 10-year median of 3.35. Over the past 10 years, this metric has ranged from a low of 1.12 to a high of 7.41. The Retail - Defensive industry median WACC % is 5.99. Khong Guan's value of 7.46% is 24.5% above this industry median. Based on the distribution chart, Khong Guan ranks #185 out of 317 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Khong Guan has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Khong Guan's WACC % compare to SYY and USFD?
According to the Retail - Defensive industry distribution chart, Khong Guan ranks #185 out of 317 companies for WACC %. This places Khong Guan in the lower half of its industry. The industry median WACC % is 5.99. Khong Guan's value of 7.46% is 24.5% above this benchmark. Historically, Khong Guan's own WACC % has ranged from 1.12 to 7.41 over the past decade. While the company's 10-year median is 3.35 vs. the industry median of 5.99, Khong Guan 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 - Defensive company?
The median WACC % among Retail - Defensive companies is 5.99, based on 317 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. Khong Guan's current WACC % of 7.46% is 24.5% 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 Khong Guan and its competitors. For the Retail - Defensive industry, the median WACC % is 5.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Khong Guan's current WACC % is 7.46%, which is 123% above median its own 10-year median of 3.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Khong Guan stock overvalued right now?
Based on GuruFocus' analysis, Khong Guan (SGX:K03) is currently considered Modestly Undervalued. The stock's GF Value™ is S$1.02, compared to a current price of S$0.85 — trading 17.2% below its estimated fair value. The current WACC % is 7.46%, which is 123% above median its 10-year median of 3.35 and 24.5% above the Retail - Defensive industry median of 5.99. Khong Guan's overall GF Score™ is 67/100 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 Khong Guan (SGX:K03), the current WACC % is 7.46% 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.
Is Khong Guan (SGX:K03) Overvalued in 2026?
Based on GuruFocus' analysis, Khong Guan stock appears to be undervalued.
The current stock price of S$0.85 is trading 17.2% below its estimated GF Value™ of S$1.02.
GuruFocus considers Khong Guan to be Modestly Undervalued.
Key valuation signals for SGX:K03:
WACC %: 7.46% (123% above median its 10-year median of 3.35)
GF Value™: S$1.02 vs. price of S$0.85 (17.2% below fair value)
Industry Position: 24.5% above the Retail - Defensive median (#185 of 317)
No single metric tells the full story. See the SGX:K03 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Khong Guan Ltd is a Singapore-based investment holding company. It has two reportable operating segments; Trading of wheat flour and consumer goods, which is engaged in trading of wheat flour and consumer goods in Singapore and Malaysia; and Others which is involved in trading and holding of quoted and unquoted shares in Singapore and Malaysia. The company generates maximum revenue from the Trading of wheat flour and consumer goods segment. Geographically, it derives a majority of its revenue from Malaysia and the rest from Singapore.
67GF Score
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