Nestle Malaysia BhdXKLS:4707 -2.53%88 WACC % is 12.78% as of Jun. 30, 2026, which is 206% above its 10-year median of 4.17. GuruFocus rates XKLS:4707 with a GF Score™ of 88/100 and a GF Value™ of RM116.82 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,034 Consumer Packaged Goods companies, Nestle Malaysia Bhd ranks worse than 89.92% on this metric.
As of today (2026-06-30), Nestle Malaysia Bhd's weighted average cost of capital is 12.78%%. Nestle Malaysia Bhd's ROIC % is 20.97% (calculated using TTM income statement data).
Nestle Malaysia 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.
Nestle Malaysia Bhd (XKLS:4707) 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, Nestle Malaysia Bhd's weighted average cost of capital is 12.78%%. Nestle Malaysia Bhd's ROIC % is 20.97% (calculated using TTM income statement data).
Nestle Malaysia 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.
Related Terms
Nestle Malaysia Bhd WACC % Historical Data
* Premium members only.
The historical data trend for Nestle Malaysia 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 Packaged Foods subindustry, Nestle 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.
Nestle Malaysia Bhd WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Malaysia Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where Nestle 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, Nestle Malaysia Bhd's market capitalization (E) is RM21906.990 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, Nestle Malaysia Bhd's latest one-year quarterly average Book Value of Debt (D) is RM882.418 Mil.
a) weight of equity = E / (E + D) = 21906.990 / (21906.990 + 882.418) = 0.9613
b) weight of debt = D / (E + D) = 882.418 / (21906.990 + 882.418) = 0.0387
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 4.392%. 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. Nestle Malaysia Bhd's beta is 1.4512.
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 = 4.392% + 1.4512 * 6% = 13.0992%
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, Nestle Malaysia Bhd's interest expense (positive number) was RM56.824 Mil. Its total Book Value of Debt (D) is RM882.418 Mil.
Cost of Debt = 56.824 / 882.418 = 6.4396%.
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 = 202.483 / 759.289 = 26.67%.
Nestle Malaysia 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)
=
0.9613
*
13.0992%
+
0.0387
*
6.4396%
*
(1 - 26.67%)
=
12.78%
* 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.
Nestle Malaysia Bhd (XKLS:4707) has a WACC % of 12.78% as of Jun. 30, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Nestle Malaysia Bhd and its competitors. This is 206% above median its historical median of 4.17. Over the past decade, Nestle Malaysia Bhd's WACC % has ranged from 1.99 to 12.77. According to the industry distribution chart, Nestle Malaysia Bhd ranks #1829 out of 2034 companies in the Consumer Packaged Goods industry, placing it in the top 89.9%.
Is Nestle Malaysia Bhd's WACC % too high?
Nestle Malaysia Bhd's current WACC % of 12.78% is 206% above median its 10-year median of 4.17. Over the past 10 years, this metric has ranged from a low of 1.99 to a high of 12.77. The Consumer Packaged Goods industry median WACC % is 7.69. Nestle Malaysia Bhd's value of 12.78% is 66.2% above this industry median. Based on the distribution chart, Nestle Malaysia Bhd ranks #1829 out of 2034 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Nestle Malaysia Bhd has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nestle Malaysia Bhd's WACC % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Malaysia Bhd ranks #1829 out of 2034 companies for WACC %. This places Nestle Malaysia Bhd in the lower half of its industry. The industry median WACC % is 7.69. Nestle Malaysia Bhd's value of 12.78% is 66.2% above this benchmark. Historically, Nestle Malaysia Bhd's own WACC % has ranged from 1.99 to 12.77 over the past decade. While the company's 10-year median is 4.17 vs. the industry median of 7.69, Nestle Malaysia 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 Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.69, based on 2,034 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. Nestle Malaysia Bhd's current WACC % of 12.78% is 66.2% 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 Nestle Malaysia Bhd and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle Malaysia Bhd's current WACC % is 12.78%, which is 206% above median its own 10-year median of 4.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Malaysia Bhd stock overvalued right now?
Based on GuruFocus' analysis, Nestle Malaysia Bhd (XKLS:4707) is currently considered Modestly Undervalued. The stock's GF Value™ is RM116.82, compared to a current price of RM93.42 — trading 20% below its estimated fair value. The current WACC % is 12.78%, which is 206% above median its 10-year median of 4.17 and 66.2% above the Consumer Packaged Goods industry median of 7.69. Nestle Malaysia Bhd's overall GF Score™ is 88/100 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 Nestle Malaysia Bhd (XKLS:4707), the current WACC % is 12.78% as of Jun. 30, 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 Nestle Malaysia Bhd (XKLS:4707) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Malaysia Bhd stock appears to be undervalued.
The current stock price of RM93.42 is trading 20% below its estimated GF Value™ of RM116.82.
GuruFocus considers Nestle Malaysia Bhd to be Modestly Undervalued.
Key valuation signals for XKLS:4707:
WACC %: 12.78% (206% above median its 10-year median of 4.17)
GF Value™: RM116.82 vs. price of RM93.42 (20% below fair value)
Industry Position: 66.2% above the Consumer Packaged Goods median (#1829 of 2034)
No single metric tells the full story. See the XKLS:4707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Malaysia Bhd is a Malaysian investment holding company owned by Nestle. The business activities of the group are functioned through Food and beverages and Others segments which include Nutrition, Nestle Professional, Nestle Health Science and NESPRESSO. The Food and Beverages segment derives maximum revenue. The products offered by the group are related to dairy, beverages, food, Nestle Professional, Nestle Ice Cream, confectionery, chilled dairy, infant nutrition, and health science. The main geography is the domestic market, representing approximately maximum of total sales. The known brands are Nescafe, Maggi, Nespray, Kit Kat, and Milo.
88GF Score
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