Wise GroupWSE +1.10%95 WACC % is 12.96% as of Jun. 26, 2026, which is 38% above its 10-year median of 9.41. GuruFocus rates WSE with a GF Score™ of 95/100 and a GF Value™ of $16.15 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,913 Software companies, Wise Group ranks worse than 78.24% on this metric.
As of today (2026-06-26), Wise Group's weighted average cost of capital is 12.96%%. Wise Group's ROIC % is 98.82% (calculated using TTM income statement data).
Wise Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Wise Group (NAS:WSE) 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, Wise Group's weighted average cost of capital is 12.96%%. Wise Group's ROIC % is 98.82% (calculated using TTM income statement data).
Wise Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
Related Terms
Wise Group WACC % Historical Data
* Premium members only.
The historical data trend for Wise Group'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 Information Technology Services subindustry, Wise 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.
Wise Group WACC % vs Software Industry
For the Software industry and Technology sector, Wise Group's WACC % distribution charts can be found below:
* The bar in red indicates where Wise 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, Wise Group's market capitalization (E) is $11082.931 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 Sep. 2025, Wise Group's latest one-year semi-annual average Book Value of Debt (D) is $238.7557 Mil.
a) weight of equity = E / (E + D) = 11082.931 / (11082.931 + 238.7557) = 0.9789
b) weight of debt = D / (E + D) = 238.7557 / (11082.931 + 238.7557) = 0.0211
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 4.9416%. 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. Wise Group's beta is 1.3584.
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 = 4.9416% + 1.3584 * 6% = 13.092%
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 Sep. 2025, Wise Group's interest expense (positive number) was $22.347 Mil. Its total Book Value of Debt (D) is $238.7557 Mil.
Cost of Debt = 22.347 / 238.7557 = 9.3598%.
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 = 185.267 / 695.863 = 26.62%.
Wise Group'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)
=
0.9789
*
13.092%
+
0.0211
*
9.3598%
*
(1 - 26.62%)
=
12.96%
* 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.
Wise Group (WSE) has a WACC % of 12.96% as of Jun. 26, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Wise Group and its competitors. This is 38% above median its historical median of 9.41. Over the past decade, Wise Group's WACC % has ranged from 7.11 to 14.45. According to the industry distribution chart, Wise Group ranks #2279 out of 2913 companies in the Software industry, placing it in the top 78.2%.
Is Wise Group's WACC % too high?
Wise Group's current WACC % of 12.96% is 38% above median its 10-year median of 9.41. Over the past 10 years, this metric has ranged from a low of 7.11 to a high of 14.45. The Software industry median WACC % is 9.02. Wise Group's value of 12.96% is 43.7% above this industry median. Based on the distribution chart, Wise Group ranks #2279 out of 2913 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Wise Group has a GF Score™ of 95/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wise Group's WACC % compare to APLD and CACI?
According to the Software industry distribution chart, Wise Group ranks #2279 out of 2913 companies for WACC %. This places Wise Group in the lower half of its industry. The industry median WACC % is 9.02. Wise Group's value of 12.96% is 43.7% above this benchmark. Historically, Wise Group's own WACC % has ranged from 7.11 to 14.45 over the past decade. While the company's 10-year median is 9.41 vs. the industry median of 9.02, Wise Group 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 Software company?
The median WACC % among Software companies is 9.02, based on 2,913 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. Wise Group's current WACC % of 12.96% is 43.7% 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 Wise Group and its competitors. For the Software industry, the median WACC % is 9.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wise Group's current WACC % is 12.96%, which is 38% above median its own 10-year median of 9.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wise Group stock overvalued right now?
Based on GuruFocus' analysis, Wise Group (WSE) is currently considered Possible Value Trap. The stock's GF Value™ is $16.15, compared to a current price of $11.08 — trading 31.4% below its estimated fair value. The current WACC % is 12.96%, which is 38% above median its 10-year median of 9.41 and 43.7% above the Software industry median of 9.02. Wise Group's overall GF Score™ is 95/100 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 Wise Group (WSE), the current WACC % is 12.96% as of Jun. 26, 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 Wise Group (WSE) Overvalued in 2026?
Based on GuruFocus' analysis, Wise Group stock appears to be undervalued.
The current stock price of $11.08 is trading 31.4% below its estimated GF Value™ of $16.15.
GuruFocus considers Wise Group to be Possible Value Trap.
Key valuation signals for WSE:
WACC %: 12.96% (38% above median its 10-year median of 9.41)
GF Value™: $16.15 vs. price of $11.08 (31.4% below fair value)
Industry Position: 43.7% above the Software median (#2279 of 2913)
No single metric tells the full story. See the WSE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wise is a currency conversion platform that matches, where possible, offsetting currency transactions across borders to reduce costs. The group focuses primarily on private clients and small and midsize enterprises, but it is building out its platform business aimed at providing its services as a backend solution to banks. By operating local accounts in each jurisdiction Wise sends money to or receives money from, this fintech offers faster and cheaper currency transfer services than incumbents (banks). Wise has started to broaden its product offering, issuing its clients debit cards and allowing customers to invest funds in various asset management products.
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