Fuchun Dye and Weave Group Co (SHSE:605189) WACC %:6.4% (As of Aug. 04, 2026) — Near Median

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Director of Data and Quant Analytics at GuruFocus
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SHSE:605189 Fuchun Dye and Weave Group Co Ltd SHSE:605189
79 GF Score
Price ¥16.22
GF Value ¥15.62
Valuation Fairly Valued
! 11 Warning Signs
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What is Fuchun Dye and Weave Group Co WACC %?

Fuchun Dye and Weave Group Co SHSE:605189 +1.69% 79 WACC % is 6.4% as of Aug. 04, 2026, which is 7% below its 10-year median of 6.89. GuruFocus rates SHSE:605189 with a GF Score™ of 79/100 and a GF Value™ of ¥15.62 (Fairly Valued). The stock has 11 warning signs investors should review. Among 1,084 Manufacturing - Apparel & Accessories companies, Fuchun Dye and Weave Group Co ranks better than 54.52% on this metric.

As of today (2026-08-04), Fuchun Dye and Weave Group Co's weighted average cost of capital is 6.4%%. Fuchun Dye and Weave Group Co's ROIC % is 3.51% (calculated using TTM income statement data). Fuchun Dye and Weave Group Co 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.


Fuchun Dye and Weave Group Co  (SHSE:605189) 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, Fuchun Dye and Weave Group Co's weighted average cost of capital is 6.4%%. Fuchun Dye and Weave Group Co's ROIC % is 3.51% (calculated using TTM income statement data). Fuchun Dye and Weave Group Co 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.


Related Terms

Fuchun Dye and Weave Group Co WACC % Historical Data

* Premium members only.

The historical data trend for Fuchun Dye and Weave Group Co'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.

Fuchun Dye and Weave Group Co WACC % Chart

Fuchun Dye and Weave Group Co 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 7.43 8.38 7.31 6.19 6.47

Fuchun Dye and Weave Group Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
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 5.72 6.16 6.40 6.47 6.37

Fuchun Dye and Weave Group Co WACC % Competitor Comparison

For the Textile Manufacturing subindustry, Fuchun Dye and Weave Group 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.


Fuchun Dye and Weave Group Co WACC % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Fuchun Dye and Weave Group Co's WACC % distribution charts can be found below:

* The bar in red indicates where Fuchun Dye and Weave Group Co's WACC % falls into.


SHSE:605189
79GF Score
Fuchun Dye and Weave Group Co Ltd SHSE:605189
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Fuchun Dye and Weave Group Co 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, Fuchun Dye and Weave Group Co's market capitalization (E) is ¥3864.171 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, Fuchun Dye and Weave Group Co's latest one-year quarterly average Book Value of Debt (D) is ¥2525.1014 Mil.
a) weight of equity = E / (E + D) = 3864.171 / (3864.171 + 2525.1014) = 0.6048
b) weight of debt = D / (E + D) = 2525.1014 / (3864.171 + 2525.1014) = 0.3952

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 4.603%. 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. Fuchun Dye and Weave Group Co's beta is 0.7392.
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 = 4.603% + 0.7392 * 6% = 9.0382%

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, Fuchun Dye and Weave Group Co's interest expense (positive number) was ¥68.595 Mil. Its total Book Value of Debt (D) is ¥2525.1014 Mil.
Cost of Debt = 68.595 / 2525.1014 = 2.7165%.

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 = 21.339 / 166.524 = 12.81%.

Fuchun Dye and Weave Group Co'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)
=0.6048*9.0382%+0.3952*2.7165%*(1 - 12.81%)
=6.4%

* 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 6.4% mean?
Fuchun Dye and Weave Group Co (SHSE:605189) has a WACC % of 6.4% as of Aug. 04, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Fuchun Dye and Weave Group Co and its competitors. This is near median its historical median of 6.89. Over the past decade, Fuchun Dye and Weave Group Co's WACC % has ranged from 3.56 to 8.38. According to the industry distribution chart, Fuchun Dye and Weave Group Co ranks #493 out of 1084 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 45.5%.
Is Fuchun Dye and Weave Group Co's WACC % too high?
Fuchun Dye and Weave Group Co's current WACC % of 6.4% is near median its 10-year median of 6.89. Over the past 10 years, this metric has ranged from a low of 3.56 to a high of 8.38. The Manufacturing - Apparel & Accessories industry median WACC % is 8.55. Fuchun Dye and Weave Group Co's value of 6.4% is 25.1% below this industry median. Based on the distribution chart, Fuchun Dye and Weave Group Co ranks #493 out of 1084 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Fuchun Dye and Weave Group Co has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fuchun Dye and Weave Group Co's WACC % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Fuchun Dye and Weave Group Co ranks #493 out of 1084 companies for WACC %. This puts Fuchun Dye and Weave Group Co in the upper half of its industry. The industry median WACC % is 8.55. Fuchun Dye and Weave Group Co's value of 6.4% is 25.1% below this benchmark. Historically, Fuchun Dye and Weave Group Co's own WACC % has ranged from 3.56 to 8.38 over the past decade. While the company's 10-year median is 6.89 vs. the industry median of 8.55, Fuchun Dye and Weave Group Co 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 Manufacturing - Apparel & Accessories company?
The median WACC % among Manufacturing - Apparel & Accessories companies is 8.55, based on 1,084 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. Fuchun Dye and Weave Group Co's current WACC % of 6.4% is 25.1% 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 Fuchun Dye and Weave Group Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median WACC % is 8.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fuchun Dye and Weave Group Co's current WACC % is 6.4%, which is near median its own 10-year median of 6.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fuchun Dye and Weave Group Co stock overvalued right now?
Based on GuruFocus' analysis, Fuchun Dye and Weave Group Co (SHSE:605189) is currently considered Fairly Valued. The stock's GF Value™ is ¥15.62, compared to a current price of ¥16.22 — trading 3.8% above its estimated fair value. The current WACC % is 6.4%, which is near median its 10-year median of 6.89 and 25.1% below the Manufacturing - Apparel & Accessories industry median of 8.55. Fuchun Dye and Weave Group Co's overall GF Score™ is 79/100 with 11 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 Fuchun Dye and Weave Group Co (SHSE:605189), the current WACC % is 6.4% as of Aug. 04, 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 Fuchun Dye and Weave Group Co (SHSE:605189) Overvalued in 2026?

Based on GuruFocus' analysis, Fuchun Dye and Weave Group Co stock appears to be overvalued. The current stock price of ¥16.22 is trading 3.8% above its estimated GF Value™ of ¥15.62. GuruFocus considers Fuchun Dye and Weave Group Co to be Fairly Valued.

Key valuation signals for SHSE:605189:

  • WACC %: 6.4% (near median its 10-year median of 6.89)
  • GF Value™: ¥15.62 vs. price of ¥16.22 (3.8% above fair value)
  • GF Score™: 79/100 with 11 warning signs
  • Industry Position: 25.1% below the Manufacturing - Apparel & Accessories median (#493 of 1084)

No single metric tells the full story. See the SHSE:605189 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Fuchun Dye and Weave Group Co Business Description

Address No. 3, Jiuhua North Road, China (Anhui) Pilot Free Trade Zone, Wuhu, CHN, 241008
Wuhu Fuchun Dye and Weave Co Ltd is engaged in research, development and production of dyed yarn. The company offers thread bleaching and dyes , socks manufacturing, silk, yarn, and thread sales.
79GF Score

Get the complete analysis for SHSE:605189

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

¥16.22
Price
¥15.62
GF Value