Econframe BhdXKLS:0227 -1.85%59 WACC % is 5.66% as of Jul. 07, 2026, which is 13% above its 10-year median of 5.02. GuruFocus rates XKLS:0227 with a GF Score™ of 59/100 and a GF Value™ of RM0.91 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 1,805 Construction companies, Econframe Bhd ranks better than 66.09% on this metric.
As of today (2026-07-07), Econframe Bhd's weighted average cost of capital is 5.66%%. Econframe Bhd's ROIC % is 3.99% (calculated using TTM income statement data).
Econframe Bhd 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.
Econframe Bhd (XKLS:0227) 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, Econframe Bhd's weighted average cost of capital is 5.66%%. Econframe Bhd's ROIC % is 3.99% (calculated using TTM income statement data).
Econframe Bhd 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
Econframe Bhd WACC % Historical Data
* Premium members only.
The historical data trend for Econframe Bhd'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 Building Products & Equipment subindustry, Econframe Bhd'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.
Econframe Bhd WACC % vs Construction Industry
For the Construction industry and Industrials sector, Econframe Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where Econframe Bhd'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, Econframe Bhd's market capitalization (E) is RM99.593 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 Feb. 2026, Econframe Bhd's latest one-year quarterly average Book Value of Debt (D) is RM21.9478 Mil.
a) weight of equity = E / (E + D) = 99.593 / (99.593 + 21.9478) = 0.8194
b) weight of debt = D / (E + D) = 21.9478 / (99.593 + 21.9478) = 0.1806
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 4.497%. 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. Econframe Bhd's beta is 0.3116.
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 = 4.497% + 0.3116 * 6% = 6.3666%
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 Feb. 2026, Econframe Bhd's interest expense (positive number) was RM1.383 Mil. Its total Book Value of Debt (D) is RM21.9478 Mil.
Cost of Debt = 1.383 / 21.9478 = 6.3013%.
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 = 4.339 / 7.085 = 61.24%.
Econframe Bhd'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)
=
0.8194
*
6.3666%
+
0.1806
*
6.3013%
*
(1 - 61.24%)
=
5.66%
* 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.
Econframe Bhd (XKLS:0227) has a WACC % of 5.66% 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 Econframe Bhd and its competitors. This is 13% above median its historical median of 5.02. Over the past decade, Econframe Bhd's WACC % has ranged from 0.92 to 10.08. According to the industry distribution chart, Econframe Bhd ranks #612 out of 1805 companies in the Construction industry, placing it in the top 33.9%.
Is Econframe Bhd's WACC % too high?
Econframe Bhd's current WACC % of 5.66% is 13% above median its 10-year median of 5.02. Over the past 10 years, this metric has ranged from a low of 0.92 to a high of 10.08. The Construction industry median WACC % is 7.67. Econframe Bhd's value of 5.66% is 26.2% below this industry median. Based on the distribution chart, Econframe Bhd ranks #612 out of 1805 companies in the Construction industry, which is above the industry midpoint. Overall, Econframe Bhd has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Econframe Bhd's WACC % compare to TT and JCI?
According to the Construction industry distribution chart, Econframe Bhd ranks #612 out of 1805 companies for WACC %. This puts Econframe Bhd in the upper half of its industry. The industry median WACC % is 7.67. Econframe Bhd's value of 5.66% is 26.2% below this benchmark. Historically, Econframe Bhd's own WACC % has ranged from 0.92 to 10.08 over the past decade. While the company's 10-year median is 5.02 vs. the industry median of 7.67, Econframe Bhd 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 7.67, based on 1,805 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. Econframe Bhd's current WACC % of 5.66% is 26.2% 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 Econframe Bhd and its competitors. For the Construction industry, the median WACC % is 7.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Econframe Bhd's current WACC % is 5.66%, which is 13% above median its own 10-year median of 5.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Econframe Bhd stock overvalued right now?
Based on GuruFocus' analysis, Econframe Bhd (XKLS:0227) is currently considered Significantly Undervalued. The stock's GF Value™ is RM0.91, compared to a current price of RM0.27 — trading 70.9% below its estimated fair value. The current WACC % is 5.66%, which is 13% above median its 10-year median of 5.02 and 26.2% below the Construction industry median of 7.67. Econframe Bhd's overall GF Score™ is 59/100 with 6 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 Econframe Bhd (XKLS:0227), the current WACC % is 5.66% 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 Econframe Bhd (XKLS:0227) Overvalued in 2026?
Based on GuruFocus' analysis, Econframe Bhd stock appears to be undervalued.
The current stock price of RM0.27 is trading 70.9% below its estimated GF Value™ of RM0.91.
GuruFocus considers Econframe Bhd to be Significantly Undervalued.
Key valuation signals for XKLS:0227:
WACC %: 5.66% (13% above median its 10-year median of 5.02)
GF Value™: RM0.91 vs. price of RM0.27 (70.9% below fair value)
Industry Position: 26.2% below the Construction median (#612 of 1805)
No single metric tells the full story. See the XKLS:0227 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Econframe Bhd is an investment holding company. Its subsidiaries are engaged in the manufacturing and sales of doors, door and window frames, glass processing, and fabrication and installation of aluminium glazing, glass products, and facade works. The Group operates in three reportable operating segments: Manufacturing, which focuses on doors, frames, glass and facade works and generates the majority of revenue; Trading, which involves trading of doors and ironmongery and the trading and provision of installation services for solar energy products and systems; and Investment holding, which provides corporate and financial support to the Group. The Group operates predominantly in Malaysia.
59GF Score
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