Sds OpticWAR:SDS -8.56%19 WACC % is 10.39% as of Jul. 02, 2026, which is 11% below its 10-year median of 11.70. GuruFocus rates WAR:SDS with a GF Score™ of 19/100. The stock has 4 warning signs investors should review. Among 867 Medical Devices & Instruments companies, Sds Optic ranks worse than 67.01% on this metric.
As of today (2026-07-02), Sds Optic's weighted average cost of capital is 10.39%%. Sds Optic's ROIC % is -13.22% (calculated using TTM income statement data).
Sds Optic 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.
Sds Optic (WAR:SDS) 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, Sds Optic's weighted average cost of capital is 10.39%%. Sds Optic's ROIC % is -13.22% (calculated using TTM income statement data).
Sds Optic 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
Sds Optic WACC % Historical Data
* Premium members only.
The historical data trend for Sds Optic'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 Medical Devices subindustry, Sds Optic'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.
Sds Optic WACC % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Sds Optic's WACC % distribution charts can be found below:
* The bar in red indicates where Sds Optic'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, Sds Optic's market capitalization (E) is zł22.830 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, Sds Optic's latest one-year quarterly average Book Value of Debt (D) is zł13.817 Mil.
a) weight of equity = E / (E + D) = 22.830 / (22.830 + 13.817) = 0.623
b) weight of debt = D / (E + D) = 13.817 / (22.830 + 13.817) = 0.377
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 5.74%. 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. Sds Optic's beta is 1.1499.
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 = 5.74% + 1.1499 * 6% = 12.6394%
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, Sds Optic's interest expense (positive number) was zł0.923 Mil. Its total Book Value of Debt (D) is zł13.817 Mil.
Cost of Debt = 0.923 / 13.817 = 6.6802%.
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 = 0.024 / -3.155 = -0.76%, which is less than 0%. Therefore it's set to 0%.
Sds Optic'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)
=
0.623
*
12.6394%
+
0.377
*
6.6802%
*
(1 - 0%)
=
10.39%
* 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.
Sds Optic (WAR:SDS) has a WACC % of 10.39% as of Jul. 02, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sds Optic and its competitors. This is 11% below median its historical median of 11.70. Over the past decade, Sds Optic's WACC % has ranged from 7.05 to 12.61. According to the industry distribution chart, Sds Optic ranks #581 out of 867 companies in the Medical Devices & Instruments industry, placing it in the top 67%.
Is Sds Optic's WACC % too high?
Sds Optic's current WACC % of 10.39% is 11% below median its 10-year median of 11.70. Over the past 10 years, this metric has ranged from a low of 7.05 to a high of 12.61. The Medical Devices & Instruments industry median WACC % is 9.23. Sds Optic's value of 10.39% is 12.6% above this industry median. Based on the distribution chart, Sds Optic ranks #581 out of 867 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Sds Optic has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Sds Optic's WACC % compare to ABT and SYK?
According to the Medical Devices & Instruments industry distribution chart, Sds Optic ranks #581 out of 867 companies for WACC %. This places Sds Optic in the lower half of its industry. The industry median WACC % is 9.23. Sds Optic's value of 10.39% is 12.6% above this benchmark. Historically, Sds Optic's own WACC % has ranged from 7.05 to 12.61 over the past decade. While the company's 10-year median is 11.70 vs. the industry median of 9.23, Sds Optic 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 Medical Devices & Instruments company?
The median WACC % among Medical Devices & Instruments companies is 9.23, based on 867 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. Sds Optic's current WACC % of 10.39% is 12.6% 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 Sds Optic and its competitors. For the Medical Devices & Instruments industry, the median WACC % is 9.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sds Optic's current WACC % is 10.39%, which is 11% below median its own 10-year median of 11.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sds Optic stock overvalued right now?
Sds Optic (WAR:SDS) has a current WACC % of 10.39%. The current WACC % is 10.39%, which is 11% below median its 10-year median of 11.70 and 12.6% above the Medical Devices & Instruments industry median of 9.23. Sds Optic's overall GF Score™ is 19/100 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 Sds Optic (WAR:SDS), the current WACC % is 10.39% as of Jul. 02, 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.
Sds Optic SA is engaged in developing and creating solutions on the borderline of biochemistry, engineering and fiber optic technologies, used in cancer diagnosis and treatment. The company has designed an Opto-biological methodology that allows for instant cellular processes studies including in-vivo cancer diagnosis with single-cell resolution. The company is also focused on manufacturing Optoelectronics.
19GF Score
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