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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.
China Water Industry GroupSTU:HAU 33 WACC % is 0.27% as of Aug. 08, 2026, which is 95% below its 10-year median of 5.67. GuruFocus rates STU:HAU with a GF Score™ of 33/100 and a GF Value™ of €0.01. The stock has 11 warning signs investors should review. Among 511 Utilities - Regulated companies, China Water Industry Group ranks worse than 64.97% on this metric.
As of today (2026-08-08), China Water Industry Group's weighted average cost of capital is 0.27%%. China Water Industry Group's ROIC % is -6.04% (calculated using TTM income statement data).
China Water Industry Group 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.
China Water Industry Group (STU:HAU) 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, China Water Industry Group's weighted average cost of capital is 0.27%%. China Water Industry Group's ROIC % is -6.04% (calculated using TTM income statement data).
China Water Industry Group 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.
* 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 Utilities - Regulated Water subindustry, China Water Industry Group'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.
China Water Industry Group WACC % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, China Water Industry Group's WACC % distribution charts can be found below:
* The bar in red indicates where China Water Industry Group'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, China Water Industry Group's market capitalization (E) is €11.399 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 Dec. 2025, China Water Industry Group's latest one-year semi-annual average Book Value of Debt (D) is €83.935 Mil.
a) weight of equity = E / (E + D) = 11.399 / (11.399 + 83.935) = 0.1196
b) weight of debt = D / (E + D) = 83.935 / (11.399 + 83.935) = 0.8804
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 4.649%. 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. China Water Industry Group's beta is -7.9735.
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 = 4.649% + -7.9735 * 6% = -43.192%
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 Dec. 2025, China Water Industry Group's interest expense (positive number) was €5.286 Mil. Its total Book Value of Debt (D) is €83.935 Mil.
Cost of Debt = 5.286 / 83.935 = 6.2977%.
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 = -0.664 / -33.693 = 1.97%.
* 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.
China Water Industry Group (STU:HAU) has a WACC % of 0.27% as of Aug. 08, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on China Water Industry Group and its competitors. This is 95% below median its historical median of 5.67. Over the past decade, China Water Industry Group's WACC % has ranged from 2.69 to 8.13. According to the industry distribution chart, China Water Industry Group ranks #332 out of 511 companies in the Utilities - Regulated industry, placing it in the top 65%.
Is China Water Industry Group's WACC % too high?
China Water Industry Group's current WACC % of 0.27% is 95% below median its 10-year median of 5.67. Over the past 10 years, this metric has ranged from a low of 2.69 to a high of 8.13. The Utilities - Regulated industry median WACC % is 6.14. China Water Industry Group's value of 0.27% is 95.6% below this industry median. Based on the distribution chart, China Water Industry Group ranks #332 out of 511 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, China Water Industry Group has a GF Score™ of 33/100, reflecting its overall financial health beyond just this single metric.
How does China Water Industry Group's WACC % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, China Water Industry Group ranks #332 out of 511 companies for WACC %. This places China Water Industry Group in the lower half of its industry. The industry median WACC % is 6.14. China Water Industry Group's value of 0.27% is 95.6% below this benchmark. Historically, China Water Industry Group's own WACC % has ranged from 2.69 to 8.13 over the past decade. While the company's 10-year median is 5.67 vs. the industry median of 6.14, China Water Industry Group 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 an Utilities - Regulated company?
The median WACC % among Utilities - Regulated companies is 6.14, based on 511 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. China Water Industry Group's current WACC % of 0.27% is 95.6% 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 China Water Industry Group and its competitors. For the Utilities - Regulated industry, the median WACC % is 6.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Water Industry Group's current WACC % is 0.27%, which is 95% below median its own 10-year median of 5.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Water Industry Group stock overvalued right now?
China Water Industry Group (STU:HAU) has a current WACC % of 0.27%. The stock's GF Value™ is €0.01, compared to a current price of €0.02 — trading 90% above its estimated fair value. The current WACC % is 0.27%, which is 95% below median its 10-year median of 5.67 and 95.6% below the Utilities - Regulated industry median of 6.14. China Water Industry Group's overall GF Score™ is 33/100 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 China Water Industry Group (STU:HAU), the current WACC % is 0.27% as of Aug. 08, 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 China Water Industry Group (STU:HAU) Overvalued in 2026?
Based on GuruFocus' analysis, China Water Industry Group stock appears to be overvalued.
The current stock price of €0.02 is trading 90% above its estimated GF Value™ of €0.01.
Key valuation signals for STU:HAU:
WACC %: 0.27% (95% below median its 10-year median of 5.67)
GF Value™: €0.01 vs. price of €0.02 (90% above fair value)
Industry Position: 95.6% below the Utilities - Regulated median (#332 of 511)
No single metric tells the full story. See the STU:HAU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressDashi First Road, Xili Community, Xili Street, Room 2204, 22nd Floor, Block A, Building 6, Shenzhen International Innovation Valley, Nanshan District, Shenzhen, CHN
China Water Industry Group Ltd is an investment holding company engaged in the water supplying and energy related business. The company operates in business segments, namely Provision of water supply, sewage treatment, and construction services segment, which generates maximum revenue is engaged in provision of water supply and sewage treatment operations and related construction services; Exploitation and sale of renewable energy segment, engaged in the sale of electricity and CNG from biogas power plants; Property investment and development segment engaged in the sale of commercial and residential units; and waste management and recycling segment focuses on services income from collection and recycling of glass bottles and collection of food waste. It derives maximum revenue from PRC.
33GF Score
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