Phoenix Tours InternationalTPE:5706 -1.14%88 WACC % is 9.59% as of Jul. 07, 2026, which is 27% above its 10-year median of 7.57. GuruFocus rates TPE:5706 with a GF Score™ of 88/100 and a GF Value™ of NT$78.37 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 868 Travel & Leisure companies, Phoenix Tours International ranks worse than 66.13% on this metric.
As of today (2026-07-07), Phoenix Tours International's weighted average cost of capital is 9.59%%. Phoenix Tours International's ROIC % is 7.82% (calculated using TTM income statement data).
Phoenix Tours International 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.
Phoenix Tours International (TPE:5706) 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, Phoenix Tours International's weighted average cost of capital is 9.59%%. Phoenix Tours International's ROIC % is 7.82% (calculated using TTM income statement data).
Phoenix Tours International 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
Phoenix Tours International WACC % Historical Data
* 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 Travel Services subindustry, Phoenix Tours International'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.
Phoenix Tours International WACC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Phoenix Tours International's WACC % distribution charts can be found below:
* The bar in red indicates where Phoenix Tours International'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, Phoenix Tours International's market capitalization (E) is NT$3978.980 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, Phoenix Tours International's latest one-year quarterly average Book Value of Debt (D) is NT$753.6672 Mil.
a) weight of equity = E / (E + D) = 3978.980 / (3978.980 + 753.6672) = 0.8408
b) weight of debt = D / (E + D) = 753.6672 / (3978.980 + 753.6672) = 0.1592
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 4.557%. 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. Phoenix Tours International's beta is 1.1279.
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 = 4.557% + 1.1279 * 6% = 11.3244%
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, Phoenix Tours International's interest expense (positive number) was NT$3.825 Mil. Its total Book Value of Debt (D) is NT$753.6672 Mil.
Cost of Debt = 3.825 / 753.6672 = 0.5075%.
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 = 60.052 / 351.486 = 17.09%.
* 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.
Phoenix Tours International (TPE:5706) has a WACC % of 9.59% as of Jul. 07, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Phoenix Tours International and its competitors. This is 27% above median its historical median of 7.57. Over the past decade, Phoenix Tours International's WACC % has ranged from 3.32 to 9.98. According to the industry distribution chart, Phoenix Tours International ranks #574 out of 868 companies in the Travel & Leisure industry, placing it in the top 66.1%.
Is Phoenix Tours International's WACC % too high?
Phoenix Tours International's current WACC % of 9.59% is 27% above median its 10-year median of 7.57. Over the past 10 years, this metric has ranged from a low of 3.32 to a high of 9.98. The Travel & Leisure industry median WACC % is 7.74. Phoenix Tours International's value of 9.59% is 23.9% above this industry median. Based on the distribution chart, Phoenix Tours International ranks #574 out of 868 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Phoenix Tours International has a GF Score™ of 88/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Phoenix Tours International's WACC % compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, Phoenix Tours International ranks #574 out of 868 companies for WACC %. This places Phoenix Tours International in the lower half of its industry. The industry median WACC % is 7.74. Phoenix Tours International's value of 9.59% is 23.9% above this benchmark. Historically, Phoenix Tours International's own WACC % has ranged from 3.32 to 9.98 over the past decade. While the company's 10-year median is 7.57 vs. the industry median of 7.74, Phoenix Tours International has consistently been above 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 7.74, 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. Phoenix Tours International's current WACC % of 9.59% is 23.9% 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 Phoenix Tours International and its competitors. For the Travel & Leisure industry, the median WACC % is 7.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Phoenix Tours International's current WACC % is 9.59%, which is 27% above median its own 10-year median of 7.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Phoenix Tours International stock overvalued right now?
Based on GuruFocus' analysis, Phoenix Tours International (TPE:5706) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$78.37, compared to a current price of NT$47.50 — trading 39.4% below its estimated fair value. The current WACC % is 9.59%, which is 27% above median its 10-year median of 7.57 and 23.9% above the Travel & Leisure industry median of 7.74. Phoenix Tours International's overall GF Score™ is 88/100 with 4 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 Phoenix Tours International (TPE:5706), the current WACC % is 9.59% as of Jul. 07, 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 Phoenix Tours International (TPE:5706) Overvalued in 2026?
Based on GuruFocus' analysis, Phoenix Tours International stock appears to be undervalued.
The current stock price of NT$47.50 is trading 39.4% below its estimated GF Value™ of NT$78.37.
GuruFocus considers Phoenix Tours International to be Significantly Undervalued.
Key valuation signals for TPE:5706:
WACC %: 9.59% (27% above median its 10-year median of 7.57)
GF Value™: NT$78.37 vs. price of NT$47.50 (39.4% below fair value)
Industry Position: 23.9% above the Travel & Leisure median (#574 of 868)
No single metric tells the full story. See the TPE:5706 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Phoenix Tours International Inc is a Taiwan-based company engaged in the tourism business. Its services include tour packages, independent travel groups, domestic and overseas sightseeing tours, meals and accommodation, and related services, providing tour guides to travelers both at home and abroad. The company also sells domestic and overseas transportation tickets as a commissioned agent, purchases domestic and overseas tickets on behalf of customers, check-in luggage, and processes entry-exit visa procedures on behalf of customers. The group has four reportable segments: Group Travel Department, Domestic Transportation Department, Air Passenger and Freight Forwarding Department, and Ticketing and other departments.
88GF Score
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