As of today (2026-07-07), SNS Network Technology Bhd's weighted average cost of capital is 11.24%%. SNS Network Technology Bhd's ROIC % is 12.31% (calculated using TTM income statement data).
SNS Network Technology Bhd 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.
SNS Network Technology Bhd (XKLS:0259) 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, SNS Network Technology Bhd's weighted average cost of capital is 11.24%%. SNS Network Technology Bhd's ROIC % is 12.31% (calculated using TTM income statement data).
SNS Network Technology Bhd 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 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.
* 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 Electronics & Computer Distribution subindustry, SNS Network Technology 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.
SNS Network Technology Bhd WACC % vs Hardware Industry
For the Hardware industry and Technology sector, SNS Network Technology Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where SNS Network Technology 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, SNS Network Technology Bhd's market capitalization (E) is RM843.510 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 Apr. 2026, SNS Network Technology Bhd's latest one-year quarterly average Book Value of Debt (D) is RM167.3104 Mil.
a) weight of equity = E / (E + D) = 843.510 / (843.510 + 167.3104) = 0.8345
b) weight of debt = D / (E + D) = 167.3104 / (843.510 + 167.3104) = 0.1655
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 4.493%. 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. SNS Network Technology Bhd's beta is 1.3717.
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 = 4.493% + 1.3717 * 6% = 12.7232%
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 Apr. 2026, SNS Network Technology Bhd's interest expense (positive number) was RM8.022 Mil. Its total Book Value of Debt (D) is RM167.3104 Mil.
Cost of Debt = 8.022 / 167.3104 = 4.7947%.
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 = 10.611 / 49.043 = 21.64%.
* 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.
SNS Network Technology Bhd (XKLS:0259) has a WACC % of 11.24% 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 SNS Network Technology Bhd and its competitors. This is 18% above median its historical median of 9.53. Over the past decade, SNS Network Technology Bhd's WACC % has ranged from 8.60 to 11.24. According to the industry distribution chart, SNS Network Technology Bhd ranks #1865 out of 2509 companies in the Hardware industry, placing it in the top 74.3%.
Is SNS Network Technology Bhd's WACC % too high?
SNS Network Technology Bhd's current WACC % of 11.24% is 18% above median its 10-year median of 9.53. Over the past 10 years, this metric has ranged from a low of 8.60 to a high of 11.24. The Hardware industry median WACC % is 8.21. SNS Network Technology Bhd's value of 11.24% is 36.9% above this industry median. Based on the distribution chart, SNS Network Technology Bhd ranks #1865 out of 2509 companies in the Hardware industry, which is below the industry midpoint. Overall, SNS Network Technology Bhd has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SNS Network Technology Bhd's WACC % compare to SNX and ARW?
According to the Hardware industry distribution chart, SNS Network Technology Bhd ranks #1865 out of 2509 companies for WACC %. This places SNS Network Technology Bhd in the lower half of its industry. The industry median WACC % is 8.21. SNS Network Technology Bhd's value of 11.24% is 36.9% above this benchmark. Historically, SNS Network Technology Bhd's own WACC % has ranged from 8.60 to 11.24 over the past decade. While the company's 10-year median is 9.53 vs. the industry median of 8.21, SNS Network Technology Bhd 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 Hardware company?
The median WACC % among Hardware companies is 8.21, based on 2,509 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. SNS Network Technology Bhd's current WACC % of 11.24% is 36.9% 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 SNS Network Technology Bhd and its competitors. For the Hardware industry, the median WACC % is 8.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SNS Network Technology Bhd's current WACC % is 11.24%, which is 18% above median its own 10-year median of 9.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SNS Network Technology Bhd stock overvalued right now?
Based on GuruFocus' analysis, SNS Network Technology Bhd (XKLS:0259) is currently considered Modestly Undervalued. The stock's GF Value™ is RM0.70, compared to a current price of RM0.50 — trading 29.3% below its estimated fair value. The current WACC % is 11.24%, which is 18% above median its 10-year median of 9.53 and 36.9% above the Hardware industry median of 8.21. SNS Network Technology Bhd's overall GF Score™ is 64/100 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 SNS Network Technology Bhd (XKLS:0259), the current WACC % is 11.24% 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 SNS Network Technology Bhd (XKLS:0259) Overvalued in 2026?
Based on GuruFocus' analysis, SNS Network Technology Bhd stock appears to be undervalued.
The current stock price of RM0.50 is trading 29.3% below its estimated GF Value™ of RM0.70.
GuruFocus considers SNS Network Technology Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:0259:
WACC %: 11.24% (18% above median its 10-year median of 9.53)
GF Value™: RM0.70 vs. price of RM0.50 (29.3% below fair value)
Industry Position: 36.9% above the Hardware median (#1865 of 2509)
No single metric tells the full story. See the XKLS:0259 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SNS Network Technology Bhd is an investment holding company. Along with its subsidiaries, it is engaged in the provision of Information Communication Technology (ICT) products, services and solutions. It is organised into 3 main reportable segments as follows: i) Sale of ICT products - comprising hardware, devices and related peripherals, as well as the provision of ICT services and solutions. ii) Provision of device repair and broadband services - provision of device repair and related services and sale of broadband services. and iii) Investment holding - dividend income. The majority of the company's revenue is derived from the Sale of ICT products segment. Geographically, the maximum revenue is generated from Malaysia, followed by Hong Kong, Maldives, Singapore, and others.
64GF Score
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