As of today (2026-06-29), RedPlanet Bhd's weighted average cost of capital is 3.08%%. RedPlanet Bhd's ROIC % is 24.14% (calculated using TTM income statement data).
RedPlanet 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.
RedPlanet Bhd (XKLS:03036) 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, RedPlanet Bhd's weighted average cost of capital is 3.08%%. RedPlanet Bhd's ROIC % is 24.14% (calculated using TTM income statement data).
RedPlanet 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 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
RedPlanet Bhd WACC % Historical Data
* Premium members only.
The historical data trend for RedPlanet 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 Information Technology Services subindustry, RedPlanet 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.
RedPlanet Bhd WACC % vs Software Industry
For the Software industry and Technology sector, RedPlanet Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where RedPlanet 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, RedPlanet Bhd's market capitalization (E) is RM51.098 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, RedPlanet Bhd's latest one-year semi-annual average Book Value of Debt (D) is RM7.165 Mil.
a) weight of equity = E / (E + D) = 51.098 / (51.098 + 7.165) = 0.877
b) weight of debt = D / (E + D) = 7.165 / (51.098 + 7.165) = 0.123
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 4.372%. 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. RedPlanet Bhd's beta is -0.2217.
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 = 4.372% + -0.2217 * 6% = 3.0418%
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, RedPlanet Bhd's interest expense (positive number) was RM0.375 Mil. Its total Book Value of Debt (D) is RM7.165 Mil.
Cost of Debt = 0.375 / 7.165 = 5.2338%.
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 = 2.835 / 7.748 = 36.59%.
RedPlanet 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)
=
0.877
*
3.0418%
+
0.123
*
5.2338%
*
(1 - 36.59%)
=
3.08%
* 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.
RedPlanet Bhd (XKLS:03036) has a WACC % of 3.08% as of Jun. 29, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on RedPlanet Bhd and its competitors. This is 58% below median its historical median of 7.42. Over the past decade, RedPlanet Bhd's WACC % has ranged from 1.93 to 9.67.
Is RedPlanet Bhd's WACC % too high?
RedPlanet Bhd's current WACC % of 3.08% is 58% below median its 10-year median of 7.42. Over the past 10 years, this metric has ranged from a low of 1.93 to a high of 9.67. The Software industry median WACC % is 8.96. RedPlanet Bhd's value of 3.08% is 65.6% below this industry median. Overall, RedPlanet Bhd has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does RedPlanet Bhd's WACC % compare to IBM and ACN?
RedPlanet Bhd's WACC % of 3.08% can be compared against companies in the Software industry. The industry median WACC % is 8.96. RedPlanet Bhd's value of 3.08% is 65.6% below this benchmark. Historically, RedPlanet Bhd's own WACC % has ranged from 1.93 to 9.67 over the past decade. While the company's 10-year median is 7.42 vs. the industry median of 8.96, RedPlanet 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 Software company?
The median WACC % among Software companies is 8.96, based on 2,910 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. RedPlanet Bhd's current WACC % of 3.08% is 65.6% 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 RedPlanet Bhd and its competitors. For the Software industry, the median WACC % is 8.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RedPlanet Bhd's current WACC % is 3.08%, which is 58% below median its own 10-year median of 7.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RedPlanet Bhd stock overvalued right now?
RedPlanet Bhd (XKLS:03036) has a current WACC % of 3.08%. The stock's GF Value™ is RM0.28, compared to a current price of RM0.15 — trading 46.4% below its estimated fair value. The current WACC % is 3.08%, which is 58% below median its 10-year median of 7.42 and 65.6% below the Software industry median of 8.96. RedPlanet Bhd's overall GF Score™ is 63/100 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 RedPlanet Bhd (XKLS:03036), the current WACC % is 3.08% as of Jun. 29, 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 RedPlanet Bhd (XKLS:03036) Overvalued in 2026?
Based on GuruFocus' analysis, RedPlanet Bhd stock appears to be undervalued.
The current stock price of RM0.15 is trading 46.4% below its estimated GF Value™ of RM0.28.
Key valuation signals for XKLS:03036:
WACC %: 3.08% (58% below median its 10-year median of 7.42)
GF Value™: RM0.28 vs. price of RM0.15 (46.4% below fair value)
Industry Position: 65.6% below the Software median
No single metric tells the full story. See the XKLS:03036 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RedPlanet Bhd is an investment holding company. Through its subsidiaries, it is principally involved in the provision of GIS solutions, ICT solutions, as well as maintenance and support services. Its GIS solutions assist its customers in activities such as location search, navigation, logistics routing, customer targeting, and urban planning. The company also provides enterprise-wide business-oriented tools involving data management processes such as data collection, data processing, data digitization, and others. Geographically, the company derives maximum revenue from its customers in Malaysia followed by India, Brunei, Philippines, and other regions.
63GF Score
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