As of today (2026-07-01), Auro Holdings Bhd's weighted average cost of capital is -0.76%%. Auro Holdings Bhd's ROIC % is -5.01% (calculated using TTM income statement data).
Auro Holdings 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.
Auro Holdings Bhd (XKLS:5025) 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, Auro Holdings Bhd's weighted average cost of capital is -0.76%%. Auro Holdings Bhd's ROIC % is -5.01% (calculated using TTM income statement data).
Auro Holdings 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
Auro Holdings Bhd WACC % Historical Data
* Premium members only.
The historical data trend for Auro Holdings 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 Lumber & Wood Production subindustry, Auro Holdings 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.
Auro Holdings Bhd WACC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Auro Holdings Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where Auro Holdings 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, Auro Holdings Bhd's market capitalization (E) is RM85.946 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 Feb. 2026, Auro Holdings Bhd's latest one-year quarterly average Book Value of Debt (D) is RM11.4238 Mil.
a) weight of equity = E / (E + D) = 85.946 / (85.946 + 11.4238) = 0.8827
b) weight of debt = D / (E + D) = 11.4238 / (85.946 + 11.4238) = 0.1173
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 4.465%. 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. Auro Holdings Bhd's beta is -0.9980.
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 = 4.465% + -0.9980 * 6% = -1.523%
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 Feb. 2026, Auro Holdings Bhd's interest expense (positive number) was RM0.794 Mil. Its total Book Value of Debt (D) is RM11.4238 Mil.
Cost of Debt = 0.794 / 11.4238 = 6.9504%.
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 = -0.414 / -1.45 = 28.55%.
Auro Holdings 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)
=
0.8827
*
-1.523%
+
0.1173
*
6.9504%
*
(1 - 28.55%)
=
-0.76%
* 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.
Auro Holdings Bhd (XKLS:5025) has a WACC % of -0.76% 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 Auro Holdings Bhd and its competitors. According to the industry distribution chart, Auro Holdings Bhd ranks #3 out of 292 companies in the Forest Products industry, placing it in the top 1%.
Is Auro Holdings Bhd's WACC % too high?
Auro Holdings Bhd's current WACC % is -0.76%. Based on the distribution chart, Auro Holdings Bhd ranks #3 out of 292 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, Auro Holdings Bhd has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Auro Holdings Bhd's WACC % compare to SSD and UFPI?
According to the Forest Products industry distribution chart, Auro Holdings Bhd ranks #3 out of 292 companies for WACC %. This places Auro Holdings Bhd in the top 1% of its industry — outperforming the majority of peers. The industry median WACC % is 7.40. 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 Forest Products company?
The median WACC % among Forest Products companies is 7.40, based on 292 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. 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 Auro Holdings Bhd and its competitors. For the Forest Products industry, the median WACC % is 7.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Auro Holdings Bhd's current WACC % is -0.76%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Auro Holdings Bhd stock overvalued right now?
Based on GuruFocus' analysis, Auro Holdings Bhd (XKLS:5025) is currently considered Possible Value Trap. The stock's GF Value™ is RM0.33, compared to a current price of RM0.14 — trading 59.1% below its estimated fair value. The current WACC % is -0.76%. Auro Holdings Bhd's overall GF Score™ is 43/100 with 3 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 Auro Holdings Bhd (XKLS:5025), the current WACC % is -0.76% 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 Auro Holdings Bhd (XKLS:5025) Overvalued in 2026?
Based on GuruFocus' analysis, Auro Holdings Bhd stock appears to be undervalued.
The current stock price of RM0.14 is trading 59.1% below its estimated GF Value™ of RM0.33.
GuruFocus considers Auro Holdings Bhd to be Possible Value Trap.
Key valuation signals for XKLS:5025:
WACC %: -0.76%
GF Value™: RM0.33 vs. price of RM0.14 (59.1% below fair value)
No single metric tells the full story. See the XKLS:5025 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Auro Holdings Bhd is an investment holding company engaged in the manufacturing and trading of a wide range of quality timber products such as interior and exterior molded timber products, supplying FSC-certified and non-certified sawn timber, and also providing kiln-drying and timber treatment services. Its operating segments are the Molding and timber segment, sale of food and beverages, Sale of marine sand and Investment, and others. Geographically it derives revenues from Malaysia, China, Singapore, and others.
43GF Score
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WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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