Sime Darby BhdSMEBF 91 WACC % is 2.7% as of Jun. 27, 2026, which is 62% below its 10-year median of 7.16. GuruFocus rates SMEBF with a GF Score™ of 91/100 and a GF Value™ of $0.65. The stock has 7 warning signs investors should review. Among 1,346 Vehicles & Parts companies, Sime Darby Bhd ranks worse than 59.14% on this metric.
As of today (2026-06-27), Sime Darby Bhd's weighted average cost of capital is 2.7%%. Sime Darby Bhd's ROIC % is 5.02% (calculated using TTM income statement data).
Sime Darby Bhd 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.
Sime Darby Bhd (OTCPK:SMEBF) 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, Sime Darby Bhd's weighted average cost of capital is 2.7%%. Sime Darby Bhd's ROIC % is 5.02% (calculated using TTM income statement data).
Sime Darby Bhd 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
Sime Darby Bhd WACC % Historical Data
* Premium members only.
The historical data trend for Sime Darby Bhd'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 Auto Manufacturers subindustry, Sime Darby Bhd'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.
Sime Darby Bhd WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Sime Darby Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where Sime Darby Bhd'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, Sime Darby Bhd's market capitalization (E) is $3506.406 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, Sime Darby Bhd's latest one-year quarterly average Book Value of Debt (D) is $2306.7952 Mil.
a) weight of equity = E / (E + D) = 3506.406 / (3506.406 + 2306.7952) = 0.6032
b) weight of debt = D / (E + D) = 2306.7952 / (3506.406 + 2306.7952) = 0.3968
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 4.376%. 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. Sime Darby Bhd's beta is -0.4611.
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 = 4.376% + -0.4611 * 6% = 1.6094%
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, Sime Darby Bhd's interest expense (positive number) was $127.125 Mil. Its total Book Value of Debt (D) is $2306.7952 Mil.
Cost of Debt = 127.125 / 2306.7952 = 5.5109%.
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 = 161.408 / 773.908 = 20.86%.
Sime Darby Bhd'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)
=
0.6032
*
1.6094%
+
0.3968
*
5.5109%
*
(1 - 20.86%)
=
2.7%
* 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.
Sime Darby Bhd (SMEBF) has a WACC % of 2.7% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sime Darby Bhd and its competitors. This is 62% below median its historical median of 7.16. Over the past decade, Sime Darby Bhd's WACC % has ranged from 5.54 to 13.57. According to the industry distribution chart, Sime Darby Bhd ranks #796 out of 1346 companies in the Vehicles & Parts industry, placing it in the top 59.1%.
Is Sime Darby Bhd's WACC % too high?
Sime Darby Bhd's current WACC % of 2.7% is 62% below median its 10-year median of 7.16. Over the past 10 years, this metric has ranged from a low of 5.54 to a high of 13.57. The Vehicles & Parts industry median WACC % is 8.59. Sime Darby Bhd's value of 2.7% is 68.5% below this industry median. Based on the distribution chart, Sime Darby Bhd ranks #796 out of 1346 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Sime Darby Bhd has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does Sime Darby Bhd's WACC % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Sime Darby Bhd ranks #796 out of 1346 companies for WACC %. This places Sime Darby Bhd in the lower half of its industry. The industry median WACC % is 8.59. Sime Darby Bhd's value of 2.7% is 68.5% below this benchmark. Historically, Sime Darby Bhd's own WACC % has ranged from 5.54 to 13.57 over the past decade. While the company's 10-year median is 7.16 vs. the industry median of 8.59, Sime Darby Bhd 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 Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.59, based on 1,346 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. Sime Darby Bhd's current WACC % of 2.7% is 68.5% 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 Sime Darby Bhd and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sime Darby Bhd's current WACC % is 2.7%, which is 62% below median its own 10-year median of 7.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sime Darby Bhd stock overvalued right now?
Sime Darby Bhd (SMEBF) has a current WACC % of 2.7%. The stock's GF Value™ is $0.65, compared to a current price of $0.56 — trading 14.4% below its estimated fair value. The current WACC % is 2.7%, which is 62% below median its 10-year median of 7.16 and 68.5% below the Vehicles & Parts industry median of 8.59. Sime Darby Bhd's overall GF Score™ is 91/100 with 7 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 Sime Darby Bhd (SMEBF), the current WACC % is 2.7% as of Jun. 27, 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 Sime Darby Bhd (SMEBF) Overvalued in 2026?
Based on GuruFocus' analysis, Sime Darby Bhd stock appears to be undervalued.
The current stock price of $0.56 is trading 14.4% below its estimated GF Value™ of $0.65.
Key valuation signals for SMEBF:
WACC %: 2.7% (62% below median its 10-year median of 7.16)
GF Value™: $0.65 vs. price of $0.56 (14.4% below fair value)
Industry Position: 68.5% below the Vehicles & Parts median (#796 of 1346)
No single metric tells the full story. See the SMEBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sime Darby Bhd is a Malaysia-based investment holding company. It organizes itself into four segments, based on business type: motors, industrial, UMW, Corporate, and others. Its industrial segment, the majority revenue-generating segment, offers sales, rentals, and servicing of equipment, while the motors segment focuses on vehicle assembly, distribution, and related after-sales services. The company operates principally in the Asia-Pacific region, particularly Malaysia, with additional presence in markets in several countries through its subsidiaries and regional operations. Its business model emphasizes expanding its footprint in key sectors and leveraging established brands to capture growth across multiple geographic markets.
91GF Score
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