Sopharma Trading ADXBUL:SFT -0.69%82 WACC % is 5.72% as of Jul. 12, 2026, which is 16% below its 10-year median of 6.79. GuruFocus rates XBUL:SFT with a GF Score™ of 82/100 and a GF Value™ of €7.65 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 120 Medical Distribution companies, Sopharma Trading AD ranks better than 65% on this metric.
As of today (2026-07-12), Sopharma Trading AD's weighted average cost of capital is 5.72%%. Sopharma Trading AD's ROIC % is 11.08% (calculated using TTM income statement data).
Sopharma Trading AD 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Sopharma Trading AD (XBUL:SFT) 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, Sopharma Trading AD's weighted average cost of capital is 5.72%%. Sopharma Trading AD's ROIC % is 11.08% (calculated using TTM income statement data).
Sopharma Trading AD 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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
Sopharma Trading AD WACC % Historical Data
* Premium members only.
The historical data trend for Sopharma Trading AD'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 Distribution subindustry, Sopharma Trading AD'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.
Sopharma Trading AD WACC % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Sopharma Trading AD's WACC % distribution charts can be found below:
* The bar in red indicates where Sopharma Trading AD'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, Sopharma Trading AD's market capitalization (E) is €98.030 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, Sopharma Trading AD's latest one-year quarterly average Book Value of Debt (D) is €175.814 Mil.
a) weight of equity = E / (E + D) = 98.030 / (98.030 + 175.814) = 0.358
b) weight of debt = D / (E + D) = 175.814 / (98.030 + 175.814) = 0.642
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 4.561%. 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. Sopharma Trading AD's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 = 4.561% + 1 * 6% = 10.561%
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, Sopharma Trading AD's interest expense (positive number) was €6.456 Mil. Its total Book Value of Debt (D) is €175.814 Mil.
Cost of Debt = 6.456 / 175.814 = 3.6721%.
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 = 5.544 / 31.279 = 17.72%.
Sopharma Trading AD'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)
=
0.358
*
10.561%
+
0.642
*
3.6721%
*
(1 - 17.72%)
=
5.72%
* 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.
Sopharma Trading AD (XBUL:SFT) has a WACC % of 5.72% 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 Sopharma Trading AD and its competitors. This is 16% below median its historical median of 6.79. Over the past decade, Sopharma Trading AD's WACC % has ranged from 4.75 to 7.58. According to the industry distribution chart, Sopharma Trading AD ranks #42 out of 120 companies in the Medical Distribution industry, placing it in the top 35%.
Is Sopharma Trading AD's WACC % too high?
Sopharma Trading AD's current WACC % of 5.72% is 16% below median its 10-year median of 6.79. Over the past 10 years, this metric has ranged from a low of 4.75 to a high of 7.58. The Medical Distribution industry median WACC % is 7.28. Sopharma Trading AD's value of 5.72% is 21.4% below this industry median. Based on the distribution chart, Sopharma Trading AD ranks #42 out of 120 companies in the Medical Distribution industry, which is above the industry midpoint. Overall, Sopharma Trading AD has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sopharma Trading AD's WACC % compare to MCK and CAH?
According to the Medical Distribution industry distribution chart, Sopharma Trading AD ranks #42 out of 120 companies for WACC %. This puts Sopharma Trading AD in the upper half of its industry. The industry median WACC % is 7.28. Sopharma Trading AD's value of 5.72% is 21.4% below this benchmark. Historically, Sopharma Trading AD's own WACC % has ranged from 4.75 to 7.58 over the past decade. While the company's 10-year median is 6.79 vs. the industry median of 7.28, Sopharma Trading AD 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 Medical Distribution company?
The median WACC % among Medical Distribution companies is 7.28, based on 120 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. Sopharma Trading AD's current WACC % of 5.72% is 21.4% 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 Sopharma Trading AD and its competitors. For the Medical Distribution industry, the median WACC % is 7.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sopharma Trading AD's current WACC % is 5.72%, which is 16% below median its own 10-year median of 6.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sopharma Trading AD stock overvalued right now?
Based on GuruFocus' analysis, Sopharma Trading AD (XBUL:SFT) is currently considered Significantly Undervalued. The stock's GF Value™ is €7.65, compared to a current price of €2.86 — trading 62.6% below its estimated fair value. The current WACC % is 5.72%, which is 16% below median its 10-year median of 6.79 and 21.4% below the Medical Distribution industry median of 7.28. Sopharma Trading AD's overall GF Score™ is 82/100 with 2 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 Sopharma Trading AD (XBUL:SFT), the current WACC % is 5.72% 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 Sopharma Trading AD (XBUL:SFT) Overvalued in 2026?
Based on GuruFocus' analysis, Sopharma Trading AD stock appears to be undervalued.
The current stock price of €2.86 is trading 62.6% below its estimated GF Value™ of €7.65.
GuruFocus considers Sopharma Trading AD to be Significantly Undervalued.
Key valuation signals for XBUL:SFT:
WACC %: 5.72% (16% below median its 10-year median of 6.79)
GF Value™: €7.65 vs. price of €2.86 (62.6% below fair value)
Industry Position: 21.4% below the Medical Distribution median (#42 of 120)
No single metric tells the full story. See the XBUL:SFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sopharma Trading AD is a Bulgaria based company operating in the pharmaceutical sector. The company is engaged in the distribution of pharmaceutical items, including a portfolio of international brands, medicinal products, medical supplies, sanitary and hygienic materials, vitamins, nutritional supplements, cosmetics, medical equipment, and equipment. It also provides turnkey solutions for the construction of medical and hospital establishments. In addition, the group also caters logistics solutions for import, storage, and distribution of goods to end customers.
82GF Score
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