Sun Race Sturmey-ArcherTPE:1526 +3.82%67 WACC % is 0.76% as of Jul. 04, 2026, which is 89% below its 10-year median of 6.89. GuruFocus rates TPE:1526 with a GF Score™ of 67/100 and a GF Value™ of NT$18.68 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 868 Travel & Leisure companies, Sun Race Sturmey-Archer ranks better than 98.04% on this metric.
As of today (2026-07-04), Sun Race Sturmey-Archer's weighted average cost of capital is 0.76%%. Sun Race Sturmey-Archer's ROIC % is -2.67% (calculated using TTM income statement data).
Sun Race Sturmey-Archer 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.
Sun Race Sturmey-Archer (TPE:1526) 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, Sun Race Sturmey-Archer's weighted average cost of capital is 0.76%%. Sun Race Sturmey-Archer's ROIC % is -2.67% (calculated using TTM income statement data).
Sun Race Sturmey-Archer 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 Leisure subindustry, Sun Race Sturmey-Archer'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.
Sun Race Sturmey-Archer WACC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Sun Race Sturmey-Archer's WACC % distribution charts can be found below:
* The bar in red indicates where Sun Race Sturmey-Archer'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, Sun Race Sturmey-Archer's market capitalization (E) is NT$897.000 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 Dec. 2025, Sun Race Sturmey-Archer's latest one-year quarterly average Book Value of Debt (D) is NT$856.6706 Mil.
a) weight of equity = E / (E + D) = 897.000 / (897.000 + 856.6706) = 0.5115
b) weight of debt = D / (E + D) = 856.6706 / (897.000 + 856.6706) = 0.4885
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 4.485%. 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. Sun Race Sturmey-Archer's beta is -0.8664.
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 = 4.485% + -0.8664 * 6% = -0.7134%
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 Dec. 2025, Sun Race Sturmey-Archer's interest expense (positive number) was NT$19.668 Mil. Its total Book Value of Debt (D) is NT$856.6706 Mil.
Cost of Debt = 19.668 / 856.6706 = 2.2959%.
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 = 4.148 / -2.482 = -167.12%, which is less than 0%. Therefore it's set to 0%.
Sun Race Sturmey-Archer'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)
=
0.5115
*
-0.7134%
+
0.4885
*
2.2959%
*
(1 - 0%)
=
0.76%
* 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.
Sun Race Sturmey-Archer (TPE:1526) has a WACC % of 0.76% as of Jul. 04, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sun Race Sturmey-Archer and its competitors. This is 89% below median its historical median of 6.89. Over the past decade, Sun Race Sturmey-Archer's WACC % has ranged from 0.76 to 14.22. According to the industry distribution chart, Sun Race Sturmey-Archer ranks #17 out of 868 companies in the Travel & Leisure industry, placing it in the top 2%.
Is Sun Race Sturmey-Archer's WACC % too high?
Sun Race Sturmey-Archer's current WACC % of 0.76% is 89% below median its 10-year median of 6.89. Over the past 10 years, this metric has ranged from a low of 0.76 to a high of 14.22. The Travel & Leisure industry median WACC % is 7.69. Sun Race Sturmey-Archer's value of 0.76% is 90.1% below this industry median. Based on the distribution chart, Sun Race Sturmey-Archer ranks #17 out of 868 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Sun Race Sturmey-Archer has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sun Race Sturmey-Archer's WACC % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Sun Race Sturmey-Archer ranks #17 out of 868 companies for WACC %. This places Sun Race Sturmey-Archer in the top 2% of its industry — outperforming the majority of peers. The industry median WACC % is 7.69. Sun Race Sturmey-Archer's value of 0.76% is 90.1% below this benchmark. Historically, Sun Race Sturmey-Archer's own WACC % has ranged from 0.76 to 14.22 over the past decade. While the company's 10-year median is 6.89 vs. the industry median of 7.69, Sun Race Sturmey-Archer 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 Travel & Leisure company?
The median WACC % among Travel & Leisure companies is 7.69, based on 868 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. Sun Race Sturmey-Archer's current WACC % of 0.76% is 90.1% 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 Sun Race Sturmey-Archer and its competitors. For the Travel & Leisure industry, the median WACC % is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sun Race Sturmey-Archer's current WACC % is 0.76%, which is 89% below 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 Sun Race Sturmey-Archer stock overvalued right now?
Based on GuruFocus' analysis, Sun Race Sturmey-Archer (TPE:1526) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$18.68, compared to a current price of NT$14.95 — trading 20% below its estimated fair value. The current WACC % is 0.76%, which is 89% below median its 10-year median of 6.89 and 90.1% below the Travel & Leisure industry median of 7.69. Sun Race Sturmey-Archer's overall GF Score™ is 67/100 with 6 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 Sun Race Sturmey-Archer (TPE:1526), the current WACC % is 0.76% as of Jul. 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 Sun Race Sturmey-Archer (TPE:1526) Overvalued in 2026?
Based on GuruFocus' analysis, Sun Race Sturmey-Archer stock appears to be undervalued.
The current stock price of NT$14.95 is trading 20% below its estimated GF Value™ of NT$18.68.
GuruFocus considers Sun Race Sturmey-Archer to be Modestly Undervalued.
Key valuation signals for TPE:1526:
WACC %: 0.76% (89% below median its 10-year median of 6.89)
GF Value™: NT$18.68 vs. price of NT$14.95 (20% below fair value)
Industry Position: 90.1% below the Travel & Leisure median (#17 of 868)
No single metric tells the full story. See the TPE:1526 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sun Race Sturmey-Archer Inc is mainly engaged in manufacturing, processing and trading various bicycle parts and mechanical hardware. The company's offerings include Drivetrain Components, Brake Components, Spare Parts and Accessories, and Others. Its reportable segments are: i) Domestic department: Production of high-end bicycle parts. ii) Foreign department: Production of low-end bicycle parts and components, wholesale of fittings and equipment for industrial use. The company generates the majority of its revenue from the Domestic segment. Geographically, the company generates the majority of its revenue from the United Kingdom, followed by Taiwan, China, Germany, Netherlands, France, and others.
67GF Score
Get the complete analysis for TPE:1526
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