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Zhejiang Dingli Machinery CoSHSE:603338 -2.12%99 WACC % is 13.03% as of Aug. 03, 2026, which is 32% above its 10-year median of 9.87. GuruFocus rates SHSE:603338 with a GF Score™ of 99/100 and a GF Value™ of ¥72.38 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 214 Farm & Heavy Construction Machinery companies, Zhejiang Dingli Machinery Co ranks worse than 83.64% on this metric.
As of today (2026-08-03), Zhejiang Dingli Machinery Co's weighted average cost of capital is 13.03%%. Zhejiang Dingli Machinery Co's ROIC % is 25.79% (calculated using TTM income statement data).
Zhejiang Dingli Machinery Co 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.
Zhejiang Dingli Machinery Co (SHSE:603338) 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, Zhejiang Dingli Machinery Co's weighted average cost of capital is 13.03%%. Zhejiang Dingli Machinery Co's ROIC % is 25.79% (calculated using TTM income statement data).
Zhejiang Dingli Machinery Co 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 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
Zhejiang Dingli Machinery 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.
For the Farm & Heavy Construction Machinery subindustry, Zhejiang Dingli Machinery 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.
Zhejiang Dingli Machinery Co WACC % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Zhejiang Dingli Machinery Co's WACC % distribution charts can be found below:
* The bar in red indicates where Zhejiang Dingli Machinery Co'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, Zhejiang Dingli Machinery Co's market capitalization (E) is ¥28765.623 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 Mar. 2026, Zhejiang Dingli Machinery Co's latest one-year quarterly average Book Value of Debt (D) is ¥1084.0304 Mil.
a) weight of equity = E / (E + D) = 28765.623 / (28765.623 + 1084.0304) = 0.9637
b) weight of debt = D / (E + D) = 1084.0304 / (28765.623 + 1084.0304) = 0.0363
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 4.688%. 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. Zhejiang Dingli Machinery Co's beta is 1.4689.
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 = 4.688% + 1.4689 * 6% = 13.5014%
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 Mar. 2026, Zhejiang Dingli Machinery Co's interest expense (positive number) was ¥7.518 Mil. Its total Book Value of Debt (D) is ¥1084.0304 Mil.
Cost of Debt = 7.518 / 1084.0304 = 0.6935%.
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 = 326.28 / 2249.903 = 14.5%.
* 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.
Zhejiang Dingli Machinery Co (SHSE:603338) has a WACC % of 13.03% as of Aug. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Zhejiang Dingli Machinery Co and its competitors. This is 32% above median its historical median of 9.87. Over the past decade, Zhejiang Dingli Machinery Co's WACC % has ranged from 6.13 to 14.30. According to the industry distribution chart, Zhejiang Dingli Machinery Co ranks #179 out of 214 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 83.6%.
Is Zhejiang Dingli Machinery Co's WACC % too high?
Zhejiang Dingli Machinery Co's current WACC % of 13.03% is 32% above median its 10-year median of 9.87. Over the past 10 years, this metric has ranged from a low of 6.13 to a high of 14.30. The Farm & Heavy Construction Machinery industry median WACC % is 9.39. Zhejiang Dingli Machinery Co's value of 13.03% is 38.8% above this industry median. Based on the distribution chart, Zhejiang Dingli Machinery Co ranks #179 out of 214 companies in the Farm & Heavy Construction Machinery industry, which is in the bottom quartile relative to peers. Overall, Zhejiang Dingli Machinery Co has a GF Score™ of 99/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Dingli Machinery Co's WACC % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Zhejiang Dingli Machinery Co ranks #179 out of 214 companies for WACC %. This places Zhejiang Dingli Machinery Co in the lower half of its industry. The industry median WACC % is 9.39. Zhejiang Dingli Machinery Co's value of 13.03% is 38.8% above this benchmark. Historically, Zhejiang Dingli Machinery Co's own WACC % has ranged from 6.13 to 14.30 over the past decade. While the company's 10-year median is 9.87 vs. the industry median of 9.39, Zhejiang Dingli Machinery 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 Farm & Heavy Construction Machinery company?
The median WACC % among Farm & Heavy Construction Machinery companies is 9.39, based on 214 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. Zhejiang Dingli Machinery Co's current WACC % of 13.03% is 38.8% 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 Zhejiang Dingli Machinery Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median WACC % is 9.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Dingli Machinery Co's current WACC % is 13.03%, which is 32% above median its own 10-year median of 9.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Dingli Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Dingli Machinery Co (SHSE:603338) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥72.38, compared to a current price of ¥56.81 — trading 21.5% below its estimated fair value. The current WACC % is 13.03%, which is 32% above median its 10-year median of 9.87 and 38.8% above the Farm & Heavy Construction Machinery industry median of 9.39. Zhejiang Dingli Machinery Co's overall GF Score™ is 99/100 with 1 warning sign 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 Zhejiang Dingli Machinery Co (SHSE:603338), the current WACC % is 13.03% as of Aug. 03, 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 Zhejiang Dingli Machinery Co (SHSE:603338) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Dingli Machinery Co stock appears to be undervalued.
The current stock price of ¥56.81 is trading 21.5% below its estimated GF Value™ of ¥72.38.
GuruFocus considers Zhejiang Dingli Machinery Co to be Modestly Undervalued.
Key valuation signals for SHSE:603338:
WACC %: 13.03% (32% above median its 10-year median of 9.87)
GF Value™: ¥72.38 vs. price of ¥56.81 (21.5% below fair value)
Industry Position: 38.8% above the Farm & Heavy Construction Machinery median (#179 of 214)
No single metric tells the full story. See the SHSE:603338 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Dingli Machinery Co Ltd is engaged in the research and development, production, and sales of aerial work machinery and industrial vehicles. The company manufactures a range of aerial work platforms, including electric, diesel, and hybrid boom lifts, scissor lifts, mast lifts, and specialized models. Its products are applied across industrial, commercial, construction, and engineering sectors, as well as in logistics, petrochemicals, shipbuilding, and specialized fields such as power grids, nuclear facilities, high-speed rail, airports, and tunnels.
99GF Score
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