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As of today (2026-07-18), Skkynet Cloud Systems's weighted average cost of capital is 9.37%%. Skkynet Cloud Systems's ROIC % is -79.10% (calculated using TTM income statement data).
Skkynet Cloud Systems 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.
Skkynet Cloud Systems (OTCPK:SKKY) 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, Skkynet Cloud Systems's weighted average cost of capital is 9.37%%. Skkynet Cloud Systems's ROIC % is -79.10% (calculated using TTM income statement data).
Skkynet Cloud Systems 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 Software - Infrastructure subindustry, Skkynet Cloud Systems'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.
Skkynet Cloud Systems WACC % vs Software Industry
For the Software industry and Technology sector, Skkynet Cloud Systems's WACC % distribution charts can be found below:
* The bar in red indicates where Skkynet Cloud Systems'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, Skkynet Cloud Systems's market capitalization (E) is $26.040 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 Apr. 2026, Skkynet Cloud Systems's latest one-year quarterly average Book Value of Debt (D) is $0.167 Mil.
a) weight of equity = E / (E + D) = 26.040 / (26.040 + 0.167) = 0.9936
b) weight of debt = D / (E + D) = 0.167 / (26.040 + 0.167) = 0.0064
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 3.42%. 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. Skkynet Cloud Systems's beta is 1.0023.
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 = 3.42% + 1.0023 * 6% = 9.4338%
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 Apr. 2026, Skkynet Cloud Systems's interest expense (positive number) was $-0 Mil. Its total Book Value of Debt (D) is $0.167 Mil.
Cost of Debt = -0 / 0.167 = 0%.
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 = -0.172 / -0.475 = 36.21%.
Skkynet Cloud Systems'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)
=
0.9936
*
9.4338%
+
0.0064
*
0%
*
(1 - 36.21%)
=
9.37%
* 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.
Skkynet Cloud Systems (SKKY) has a WACC % of 9.37% as of Jul. 18, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Skkynet Cloud Systems and its competitors. According to the industry distribution chart, Skkynet Cloud Systems ranks #1556 out of 2920 companies in the Software industry, placing it in the top 53.3%.
Is Skkynet Cloud Systems' WACC % too high?
Skkynet Cloud Systems' current WACC % is 9.37%. The Software industry median WACC % is 9.05. Skkynet Cloud Systems' value of 9.37% is 3.5% above this industry median. Based on the distribution chart, Skkynet Cloud Systems ranks #1556 out of 2920 companies in the Software industry, which is below the industry midpoint. Overall, Skkynet Cloud Systems has a GF Score™ of 45/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Skkynet Cloud Systems' WACC % compare to HPAI and AIXC?
According to the Software industry distribution chart, Skkynet Cloud Systems ranks #1556 out of 2920 companies for WACC %. This places Skkynet Cloud Systems in the lower half of its industry. The industry median WACC % is 9.05. Skkynet Cloud Systems' value of 9.37% is 3.5% above this benchmark. 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 Software company?
The median WACC % among Software companies is 9.05, based on 2,920 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. Skkynet Cloud Systems's current WACC % of 9.37% is 3.5% 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 Skkynet Cloud Systems and its competitors. For the Software industry, the median WACC % is 9.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Skkynet Cloud Systems's current WACC % is 9.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Skkynet Cloud Systems stock overvalued right now?
Based on GuruFocus' analysis, Skkynet Cloud Systems (SKKY) is currently considered Fairly Valued. The stock's GF Value™ is $0.45, compared to a current price of $0.49 — trading 8.9% above its estimated fair value. The current WACC % is 9.37% and 3.5% above the Software industry median of 9.05. Skkynet Cloud Systems' overall GF Score™ is 45/100 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 Skkynet Cloud Systems (SKKY), the current WACC % is 9.37% as of Jul. 18, 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 Skkynet Cloud Systems (SKKY) Overvalued in 2026?
Based on GuruFocus' analysis, Skkynet Cloud Systems stock appears to be overvalued.
The current stock price of $0.49 is trading 8.9% above its estimated GF Value™ of $0.45.
GuruFocus considers Skkynet Cloud Systems to be Fairly Valued.
Key valuation signals for SKKY:
WACC %: 9.37%
GF Value™: $0.45 vs. price of $0.49 (8.9% above fair value)
Industry Position: 3.5% above the Software median (#1556 of 2920)
No single metric tells the full story. See the SKKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Skkynet Cloud Systems Inc is an industrial middleware vendor company. Skkynet operates its business through its wholly owned subsidiaries Cogent Real-Time Systems, Inc. (Cogent), Skkynet, Inc. (Skkynet (USA), Skkynet Corp. (Skkynet (Canada)). Skkynet was established to enhance Cogent's existing business lines through the integration of cloud-based systems (Cloud), and to deliver a Software-as-a-Service (SaaS) product targeting the Industrial Internet of Things (IoT) market, often referred to by the term Industry 4.0. The business serves North America, Europe, Asia Pacific, South America and other regions.
45GF Score
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