Iskandar Waterfront City BhdXKLS:1589 24 WACC % is 8.97% as of Jul. 05, 2026, which is 33% below its 10-year median of 13.42. GuruFocus rates XKLS:1589 with a GF Score™ of 24/100 and a GF Value™ of RM0.18 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,840 Real Estate companies, Iskandar Waterfront City Bhd ranks worse than 68.48% on this metric.
As of today (2026-07-05), Iskandar Waterfront City Bhd's weighted average cost of capital is 8.97%%. Iskandar Waterfront City Bhd's ROIC % is -1.17% (calculated using TTM income statement data).
Iskandar Waterfront City 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.
Iskandar Waterfront City Bhd (XKLS:1589) 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, Iskandar Waterfront City Bhd's weighted average cost of capital is 8.97%%. Iskandar Waterfront City Bhd's ROIC % is -1.17% (calculated using TTM income statement data).
Iskandar Waterfront City 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
Iskandar Waterfront City Bhd WACC % Historical Data
* 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.
Iskandar Waterfront City Bhd WACC % Competitor Comparison
For the Real Estate - Development subindustry, Iskandar Waterfront City 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.
Iskandar Waterfront City Bhd WACC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Iskandar Waterfront City Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where Iskandar Waterfront City 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, Iskandar Waterfront City Bhd's market capitalization (E) is RM188.831 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, Iskandar Waterfront City Bhd's latest one-year quarterly average Book Value of Debt (D) is RM106.7234 Mil.
a) weight of equity = E / (E + D) = 188.831 / (188.831 + 106.7234) = 0.6389
b) weight of debt = D / (E + D) = 106.7234 / (188.831 + 106.7234) = 0.3611
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. Iskandar Waterfront City Bhd's beta is 0.9398.
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% + 0.9398 * 6% = 10.1238%
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, Iskandar Waterfront City Bhd's interest expense (positive number) was RM7.518 Mil. Its total Book Value of Debt (D) is RM106.7234 Mil.
Cost of Debt = 7.518 / 106.7234 = 7.0444%.
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 = -0.349 / -18.938 = 1.84%.
* 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.
Iskandar Waterfront City Bhd (XKLS:1589) has a WACC % of 8.97% as of Jul. 05, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Iskandar Waterfront City Bhd and its competitors. This is 33% below median its historical median of 13.42. Over the past decade, Iskandar Waterfront City Bhd's WACC % has ranged from 4.58 to 26.04. According to the industry distribution chart, Iskandar Waterfront City Bhd ranks #1260 out of 1840 companies in the Real Estate industry, placing it in the top 68.5%.
Is Iskandar Waterfront City Bhd's WACC % too high?
Iskandar Waterfront City Bhd's current WACC % of 8.97% is 33% below median its 10-year median of 13.42. Over the past 10 years, this metric has ranged from a low of 4.58 to a high of 26.04. The Real Estate industry median WACC % is 6.49. Iskandar Waterfront City Bhd's value of 8.97% is 38.3% above this industry median. Based on the distribution chart, Iskandar Waterfront City Bhd ranks #1260 out of 1840 companies in the Real Estate industry, which is below the industry midpoint. Overall, Iskandar Waterfront City Bhd has a GF Score™ of 24/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Iskandar Waterfront City Bhd's WACC % compare to competitors?
According to the Real Estate industry distribution chart, Iskandar Waterfront City Bhd ranks #1260 out of 1840 companies for WACC %. This places Iskandar Waterfront City Bhd in the lower half of its industry. The industry median WACC % is 6.49. Iskandar Waterfront City Bhd's value of 8.97% is 38.3% above this benchmark. Historically, Iskandar Waterfront City Bhd's own WACC % has ranged from 4.58 to 26.04 over the past decade. While the company's 10-year median is 13.42 vs. the industry median of 6.49, Iskandar Waterfront City 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 Real Estate company?
The median WACC % among Real Estate companies is 6.49, based on 1,840 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. Iskandar Waterfront City Bhd's current WACC % of 8.97% is 38.3% 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 Iskandar Waterfront City Bhd and its competitors. For the Real Estate industry, the median WACC % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Iskandar Waterfront City Bhd's current WACC % is 8.97%, which is 33% below median its own 10-year median of 13.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Iskandar Waterfront City Bhd stock overvalued right now?
Based on GuruFocus' analysis, Iskandar Waterfront City Bhd (XKLS:1589) is currently considered Modestly Overvalued. The stock's GF Value™ is RM0.18, compared to a current price of RM0.21 — trading 13.9% above its estimated fair value. The current WACC % is 8.97%, which is 33% below median its 10-year median of 13.42 and 38.3% above the Real Estate industry median of 6.49. Iskandar Waterfront City Bhd's overall GF Score™ is 24/100 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 Iskandar Waterfront City Bhd (XKLS:1589), the current WACC % is 8.97% as of Jul. 05, 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 Iskandar Waterfront City Bhd (XKLS:1589) Overvalued in 2026?
Based on GuruFocus' analysis, Iskandar Waterfront City Bhd stock appears to be overvalued.
The current stock price of RM0.21 is trading 13.9% above its estimated GF Value™ of RM0.18.
GuruFocus considers Iskandar Waterfront City Bhd to be Modestly Overvalued.
Key valuation signals for XKLS:1589:
WACC %: 8.97% (33% below median its 10-year median of 13.42)
GF Value™: RM0.18 vs. price of RM0.21 (13.9% above fair value)
Industry Position: 38.3% above the Real Estate median (#1260 of 1840)
No single metric tells the full story. See the XKLS:1589 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Iskandar Waterfront City Bhd is an investment holding company involved in property development, construction, property investment, and property management activities. The Group mainly focuses on landed township development products. Its reportable segments are Property Development, Construction, and Others. It generates majority of its revenue from the Property Development segment, which involves the development of residential and commercial properties. The Group operates predominantly in Malaysia.
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