George Kent Malaysia BhdXKLS:3204 +1.92%34 WACC % is 5.69% as of Jul. 01, 2026, which is 51% below its 10-year median of 11.59. GuruFocus rates XKLS:3204 with a GF Score™ of 34/100 and a GF Value™ of RM0.42 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,803 Construction companies, George Kent Malaysia Bhd ranks better than 66% on this metric.
As of today (2026-07-01), George Kent Malaysia Bhd's weighted average cost of capital is 5.69%%. George Kent Malaysia Bhd's ROIC % is 2.22% (calculated using TTM income statement data).
George Kent Malaysia 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.
George Kent Malaysia Bhd (XKLS:3204) 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, George Kent Malaysia Bhd's weighted average cost of capital is 5.69%%. George Kent Malaysia Bhd's ROIC % is 2.22% (calculated using TTM income statement data).
George Kent Malaysia 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.
* 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 Engineering & Construction subindustry, George Kent Malaysia 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.
George Kent Malaysia Bhd WACC % vs Construction Industry
For the Construction industry and Industrials sector, George Kent Malaysia Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where George Kent Malaysia 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, George Kent Malaysia Bhd's market capitalization (E) is RM137.973 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, George Kent Malaysia Bhd's latest one-year quarterly average Book Value of Debt (D) is RM177.444 Mil.
a) weight of equity = E / (E + D) = 137.973 / (137.973 + 177.444) = 0.4374
b) weight of debt = D / (E + D) = 177.444 / (137.973 + 177.444) = 0.5626
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 4.481%. 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. George Kent Malaysia Bhd's beta is 0.2092.
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 = 4.481% + 0.2092 * 6% = 5.7362%
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, George Kent Malaysia Bhd's interest expense (positive number) was RM10.044 Mil. Its total Book Value of Debt (D) is RM177.444 Mil.
Cost of Debt = 10.044 / 177.444 = 5.6604%.
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 = 1.55 / -16.838 = -9.21%, which is less than 0%. Therefore it's set to 0%.
* 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.
George Kent Malaysia Bhd (XKLS:3204) has a WACC % of 5.69% as of Jul. 01, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on George Kent Malaysia Bhd and its competitors. This is 51% below median its historical median of 11.59. Over the past decade, George Kent Malaysia Bhd's WACC % has ranged from 4.75 to 21.49. According to the industry distribution chart, George Kent Malaysia Bhd ranks #613 out of 1803 companies in the Construction industry, placing it in the top 34%.
Is George Kent Malaysia Bhd's WACC % too high?
George Kent Malaysia Bhd's current WACC % of 5.69% is 51% below median its 10-year median of 11.59. Over the past 10 years, this metric has ranged from a low of 4.75 to a high of 21.49. The Construction industry median WACC % is 7.67. George Kent Malaysia Bhd's value of 5.69% is 25.8% below this industry median. Based on the distribution chart, George Kent Malaysia Bhd ranks #613 out of 1803 companies in the Construction industry, which is above the industry midpoint. Overall, George Kent Malaysia Bhd has a GF Score™ of 34/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does George Kent Malaysia Bhd's WACC % compare to PWR and FIX?
According to the Construction industry distribution chart, George Kent Malaysia Bhd ranks #613 out of 1803 companies for WACC %. This puts George Kent Malaysia Bhd in the upper half of its industry. The industry median WACC % is 7.67. George Kent Malaysia Bhd's value of 5.69% is 25.8% below this benchmark. Historically, George Kent Malaysia Bhd's own WACC % has ranged from 4.75 to 21.49 over the past decade. While the company's 10-year median is 11.59 vs. the industry median of 7.67, George Kent Malaysia 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 1,803 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. George Kent Malaysia Bhd's current WACC % of 5.69% is 25.8% 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 George Kent Malaysia 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. George Kent Malaysia Bhd's current WACC % is 5.69%, which is 51% below median its own 10-year median of 11.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is George Kent Malaysia Bhd stock overvalued right now?
Based on GuruFocus' analysis, George Kent Malaysia Bhd (XKLS:3204) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.42, compared to a current price of RM0.27 — trading 36.9% below its estimated fair value. The current WACC % is 5.69%, which is 51% below median its 10-year median of 11.59 and 25.8% below the Construction industry median of 7.67. George Kent Malaysia Bhd's overall GF Score™ is 34/100 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 George Kent Malaysia Bhd (XKLS:3204), the current WACC % is 5.69% as of Jul. 01, 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 George Kent Malaysia Bhd (XKLS:3204) Overvalued in 2026?
Based on GuruFocus' analysis, George Kent Malaysia Bhd stock appears to be undervalued.
The current stock price of RM0.27 is trading 36.9% below its estimated GF Value™ of RM0.42.
GuruFocus considers George Kent Malaysia Bhd to be Possible Value Trap.
Key valuation signals for XKLS:3204:
WACC %: 5.69% (51% below median its 10-year median of 11.59)
GF Value™: RM0.42 vs. price of RM0.27 (36.9% below fair value)
Industry Position: 25.8% below the Construction median (#613 of 1803)
No single metric tells the full story. See the XKLS:3204 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
George Kent Malaysia Bhd is an engineering company involved in manufacturing, trading, and investment, development of services development of water infrastructure projects, and provision of construction services. Its core businesses are in the water and construction industries. The company exports its products to Singapore, Thailand, Vietnam, Myanmar, Cambodia, Philippines, Papua New Guinea, Australia, Hong Kong, Sri Lanka, Kenya, South Africa, South America, and the United Kingdom. It operates through the following segments: Engineering, Metering, and Others.
34GF Score
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