Dirtt Environmental SolutionsTSX:DRT 25 WACC % is 4.04% as of Jul. 12, 2026, which is 55% below its 10-year median of 9.04. GuruFocus rates TSX:DRT with a GF Score™ of 25/100 and a GF Value™ of C$0.81 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,806 Construction companies, Dirtt Environmental Solutions ranks better than 79.57% on this metric.
As of today (2026-07-12), Dirtt Environmental Solutions's weighted average cost of capital is 4.04%%. Dirtt Environmental Solutions's ROIC % is -6.86% (calculated using TTM income statement data).
Dirtt Environmental Solutions 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.
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, Dirtt Environmental Solutions's weighted average cost of capital is 4.04%%. Dirtt Environmental Solutions's ROIC % is -6.86% (calculated using TTM income statement data).
Dirtt Environmental Solutions 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
Dirtt Environmental Solutions 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 Engineering & Construction subindustry, Dirtt Environmental Solutions'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.
Dirtt Environmental Solutions WACC % vs Construction Industry
For the Construction industry and Industrials sector, Dirtt Environmental Solutions's WACC % distribution charts can be found below:
* The bar in red indicates where Dirtt Environmental Solutions'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, Dirtt Environmental Solutions's market capitalization (E) is C$162.692 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, Dirtt Environmental Solutions's latest one-year quarterly average Book Value of Debt (D) is C$66.6478 Mil.
a) weight of equity = E / (E + D) = 162.692 / (162.692 + 66.6478) = 0.7094
b) weight of debt = D / (E + D) = 66.6478 / (162.692 + 66.6478) = 0.2906
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 3.5415%. 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. Dirtt Environmental Solutions's beta is 0.1088.
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 = 3.5415% + 0.1088 * 6% = 4.1943%
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, Dirtt Environmental Solutions's interest expense (positive number) was C$2.441 Mil. Its total Book Value of Debt (D) is C$66.6478 Mil.
Cost of Debt = 2.441 / 66.6478 = 3.6625%.
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 = 0.747 / -22.694 = -3.29%, which is less than 0%. Therefore it's set to 0%.
* 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.
Dirtt Environmental Solutions (TSX:DRT) has a WACC % of 4.04% as of Jul. 12, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Dirtt Environmental Solutions and its competitors. This is 55% below median its historical median of 9.04. Over the past decade, Dirtt Environmental Solutions' WACC % has ranged from 2.20 to 13.43. According to the industry distribution chart, Dirtt Environmental Solutions ranks #369 out of 1806 companies in the Construction industry, placing it in the top 20.4%.
Is Dirtt Environmental Solutions' WACC % too high?
Dirtt Environmental Solutions' current WACC % of 4.04% is 55% below median its 10-year median of 9.04. Over the past 10 years, this metric has ranged from a low of 2.20 to a high of 13.43. The Construction industry median WACC % is 7.73. Dirtt Environmental Solutions' value of 4.04% is 47.7% below this industry median. Based on the distribution chart, Dirtt Environmental Solutions ranks #369 out of 1806 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Dirtt Environmental Solutions has a GF Score™ of 25/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Dirtt Environmental Solutions' WACC % compare to PWR and FIX?
According to the Construction industry distribution chart, Dirtt Environmental Solutions ranks #369 out of 1806 companies for WACC %. This places Dirtt Environmental Solutions in the top 20% of its industry — outperforming the majority of peers. The industry median WACC % is 7.73. Dirtt Environmental Solutions' value of 4.04% is 47.7% below this benchmark. Historically, Dirtt Environmental Solutions' own WACC % has ranged from 2.20 to 13.43 over the past decade. While the company's 10-year median is 9.04 vs. the industry median of 7.73, Dirtt Environmental Solutions 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 Construction company?
The median WACC % among Construction companies is 7.73, based on 1,806 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. Dirtt Environmental Solutions's current WACC % of 4.04% is 47.7% 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 Dirtt Environmental Solutions and its competitors. For the Construction industry, the median WACC % is 7.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dirtt Environmental Solutions's current WACC % is 4.04%, which is 55% below median its own 10-year median of 9.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dirtt Environmental Solutions stock overvalued right now?
Based on GuruFocus' analysis, Dirtt Environmental Solutions (TSX:DRT) is currently considered Fairly Valued. The stock's GF Value™ is C$0.81, compared to a current price of C$0.84 — trading 3.7% above its estimated fair value. The current WACC % is 4.04%, which is 55% below median its 10-year median of 9.04 and 47.7% below the Construction industry median of 7.73. Dirtt Environmental Solutions' overall GF Score™ is 25/100 with 5 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 Dirtt Environmental Solutions (TSX:DRT), the current WACC % is 4.04% as of Jul. 12, 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 Dirtt Environmental Solutions (TSX:DRT) Overvalued in 2026?
Based on GuruFocus' analysis, Dirtt Environmental Solutions stock appears to be overvalued.
The current stock price of C$0.84 is trading 3.7% above its estimated GF Value™ of C$0.81.
GuruFocus considers Dirtt Environmental Solutions to be Fairly Valued.
Key valuation signals for TSX:DRT:
WACC %: 4.04% (55% below median its 10-year median of 9.04)
GF Value™: C$0.81 vs. price of C$0.84 (3.7% above fair value)
Industry Position: 47.7% below the Construction median (#369 of 1806)
No single metric tells the full story. See the TSX:DRT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dirtt Environmental Solutions Business Description
Dirtt Environmental Solutions Ltd offers industrialized construction services. The company uses its system of physical products and digital tools, together with construction and design leaders, to build adaptable, interior environments of workplaces in healthcare, education, and public sector markets. Its interior construction solutions are designed to be flexible and adaptable, enabling organizations to easily reconfigure their spaces as their needs evolve. The primary solutions offered by the company include solid walls, glass walls, leaf folding walls, doors, casework, access floors, etc. In addition, Dirtt enables integrations with technology, custom graphics, writable surfaces, and Breathe Living Walls. Geographically, it derives maximum revenue from the U.S, and the rest from Canada.
25GF Score
Get the complete analysis for TSX:DRT
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSX:DRT has been successfully added to your 
