As of today (2026-07-03), GPP Resources Bhd's weighted average cost of capital is 5.69%%. GPP Resources Bhd's ROIC % is -29.76% (calculated using TTM income statement data).
GPP Resources 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.
GPP Resources Bhd (XKLS:03029) 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, GPP Resources Bhd's weighted average cost of capital is 5.69%%. GPP Resources Bhd's ROIC % is -29.76% (calculated using TTM income statement data).
GPP Resources 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 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
GPP Resources Bhd WACC % Historical Data
* Premium members only.
The historical data trend for GPP Resources 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 Solar subindustry, GPP Resources 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.
GPP Resources Bhd WACC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, GPP Resources Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where GPP Resources 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, GPP Resources Bhd's market capitalization (E) is RM43.433 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 Dec. 2025, GPP Resources Bhd's latest one-year semi-annual average Book Value of Debt (D) is RM13.469 Mil.
a) weight of equity = E / (E + D) = 43.433 / (43.433 + 13.469) = 0.7633
b) weight of debt = D / (E + D) = 13.469 / (43.433 + 13.469) = 0.2367
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 4.485%. 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. GPP Resources Bhd's beta is 0.0299.
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 = 4.485% + 0.0299 * 6% = 4.6644%
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 Dec. 2025, GPP Resources Bhd's interest expense (positive number) was RM1.213 Mil. Its total Book Value of Debt (D) is RM13.469 Mil.
Cost of Debt = 1.213 / 13.469 = 9.0059%.
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 / -4.873 = 0%.
GPP Resources 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)
=
0.7633
*
4.6644%
+
0.2367
*
9.0059%
*
(1 - 0%)
=
5.69%
* 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.
GPP Resources Bhd (XKLS:03029) has a WACC % of 5.69% as of Jul. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on GPP Resources Bhd and its competitors. This is 12% below median its historical median of 6.47. Over the past decade, GPP Resources Bhd's WACC % has ranged from 4.82 to 8.30.
Is GPP Resources Bhd's WACC % too high?
GPP Resources Bhd's current WACC % of 5.69% is 12% below median its 10-year median of 6.47. Over the past 10 years, this metric has ranged from a low of 4.82 to a high of 8.30. The Semiconductors industry median WACC % is 9.34. GPP Resources Bhd's value of 5.69% is 39.1% below this industry median. Overall, GPP Resources Bhd has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does GPP Resources Bhd's WACC % compare to ?
GPP Resources Bhd's WACC % of 5.69% can be compared against companies in the Semiconductors industry. The industry median WACC % is 9.34. GPP Resources Bhd's value of 5.69% is 39.1% below this benchmark. Historically, GPP Resources Bhd's own WACC % has ranged from 4.82 to 8.30 over the past decade. While the company's 10-year median is 6.47 vs. the industry median of 9.34, GPP Resources 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 Semiconductors company?
The median WACC % among Semiconductors companies is 9.34, based on 1,031 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. GPP Resources Bhd's current WACC % of 5.69% is 39.1% 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 GPP Resources Bhd and its competitors. For the Semiconductors industry, the median WACC % is 9.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GPP Resources Bhd's current WACC % is 5.69%, which is 12% below median its own 10-year median of 6.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GPP Resources Bhd stock overvalued right now?
GPP Resources Bhd (XKLS:03029) has a current WACC % of 5.69%. The current WACC % is 5.69%, which is 12% below median its 10-year median of 6.47 and 39.1% below the Semiconductors industry median of 9.34. GPP Resources Bhd's overall GF Score™ is 25/100 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 GPP Resources Bhd (XKLS:03029), the current WACC % is 5.69% as of Jul. 03, 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.
GPP Resources Bhd is principally involved in businesses that are related to the use of biomass to produce renewable energy and OPT products. It derives maximum of the revenue from renewable energy. It has operating segments: Renewable energy plants and energy related facilities; and Manufacturing and Trading. The company earns maximum revenue from the Renewable energy plants and energy related facilities segment, which involves Design, engineering, procurement, construction, and energy related installation and commissioning of renewable energy facilities plants and energy related facilities. The Group also operates, manages and maintains renewable energy plants and related facilities. Geographically, it operates in Malaysia, Thailand, and Japan, of which Malaysia generates maximum revenue.
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