Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Coastal Contracts BhdXKLS:5071 +1.56%44 WACC % is 8.17% as of Jul. 20, 2026, which is 11% below its 10-year median of 9.15. GuruFocus rates XKLS:5071 with a GF Score™ of 44/100 and a GF Value™ of RM0.44 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,036 Oil & Gas companies, Coastal Contracts Bhd ranks worse than 56.95% on this metric.
As of today (2026-07-20), Coastal Contracts Bhd's weighted average cost of capital is 8.17%%. Coastal Contracts Bhd's ROIC % is -1.15% (calculated using TTM income statement data).
Coastal Contracts 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.
Coastal Contracts Bhd (XKLS:5071) 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, Coastal Contracts Bhd's weighted average cost of capital is 8.17%%. Coastal Contracts Bhd's ROIC % is -1.15% (calculated using TTM income statement data).
Coastal Contracts 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 Oil & Gas Equipment & Services subindustry, Coastal Contracts 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.
Coastal Contracts Bhd WACC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Coastal Contracts Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where Coastal Contracts 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, Coastal Contracts Bhd's market capitalization (E) is RM707.071 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, Coastal Contracts Bhd's latest one-year quarterly average Book Value of Debt (D) is RM19.5362 Mil.
a) weight of equity = E / (E + D) = 707.071 / (707.071 + 19.5362) = 0.9731
b) weight of debt = D / (E + D) = 19.5362 / (707.071 + 19.5362) = 0.0269
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 4.58%. 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. Coastal Contracts Bhd's beta is 0.6073.
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 = 4.58% + 0.6073 * 6% = 8.2238%
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, Coastal Contracts Bhd's interest expense (positive number) was RM1.243 Mil. Its total Book Value of Debt (D) is RM19.5362 Mil.
Cost of Debt = 1.243 / 19.5362 = 6.3625%.
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 = 1.028 / -55.654 = -1.85%, which is less than 0%. Therefore it's set to 0%.
Coastal Contracts 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)
=
0.9731
*
8.2238%
+
0.0269
*
6.3625%
*
(1 - 0%)
=
8.17%
* 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.
Coastal Contracts Bhd (XKLS:5071) has a WACC % of 8.17% as of Jul. 20, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Coastal Contracts Bhd and its competitors. This is 11% below median its historical median of 9.15. Over the past decade, Coastal Contracts Bhd's WACC % has ranged from 6.80 to 12.63. According to the industry distribution chart, Coastal Contracts Bhd ranks #590 out of 1036 companies in the Oil & Gas industry, placing it in the top 56.9%.
Is Coastal Contracts Bhd's WACC % too high?
Coastal Contracts Bhd's current WACC % of 8.17% is 11% below median its 10-year median of 9.15. Over the past 10 years, this metric has ranged from a low of 6.80 to a high of 12.63. The Oil & Gas industry median WACC % is 7.32. Coastal Contracts Bhd's value of 8.17% is 11.6% above this industry median. Based on the distribution chart, Coastal Contracts Bhd ranks #590 out of 1036 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Coastal Contracts Bhd has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Coastal Contracts Bhd's WACC % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Coastal Contracts Bhd ranks #590 out of 1036 companies for WACC %. This places Coastal Contracts Bhd in the lower half of its industry. The industry median WACC % is 7.32. Coastal Contracts Bhd's value of 8.17% is 11.6% above this benchmark. Historically, Coastal Contracts Bhd's own WACC % has ranged from 6.80 to 12.63 over the past decade. While the company's 10-year median is 9.15 vs. the industry median of 7.32, Coastal Contracts 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 an Oil & Gas company?
The median WACC % among Oil & Gas companies is 7.32, based on 1,036 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. Coastal Contracts Bhd's current WACC % of 8.17% is 11.6% 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 Coastal Contracts Bhd and its competitors. For the Oil & Gas industry, the median WACC % is 7.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coastal Contracts Bhd's current WACC % is 8.17%, which is 11% below median its own 10-year median of 9.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coastal Contracts Bhd stock overvalued right now?
Based on GuruFocus' analysis, Coastal Contracts Bhd (XKLS:5071) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.44, compared to a current price of RM1.30 — trading 195.5% above its estimated fair value. The current WACC % is 8.17%, which is 11% below median its 10-year median of 9.15 and 11.6% above the Oil & Gas industry median of 7.32. Coastal Contracts Bhd's overall GF Score™ is 44/100 with 7 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 Coastal Contracts Bhd (XKLS:5071), the current WACC % is 8.17% as of Jul. 20, 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 Coastal Contracts Bhd (XKLS:5071) Overvalued in 2026?
Based on GuruFocus' analysis, Coastal Contracts Bhd stock appears to be overvalued.
The current stock price of RM1.30 is trading 195.5% above its estimated GF Value™ of RM0.44.
GuruFocus considers Coastal Contracts Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:5071:
WACC %: 8.17% (11% below median its 10-year median of 9.15)
GF Value™: RM0.44 vs. price of RM1.30 (195.5% above fair value)
Industry Position: 11.6% above the Oil & Gas median (#590 of 1036)
No single metric tells the full story. See the XKLS:5071 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coastal Contracts Bhd is an investment holding company. Its segments include Gas processing involves provision of onshore gas conditioning and jack-up gas compression services; Vessels manufacturing and repairing services engaged in fabrication and sale of offshore support and marine transportation vessels, and provision of ship repairs and maintenance services; Vessels manufacturing and repairing services involves Fabrication and sale of offshore support and marine transportation vessels, and provision of ship repairs and maintenance services; Vessels chartering and equipment hire, derives key revenue engaged in provision of vessels transportation and equipment hiring services; and Hospitality engaged in development of an overwater bungalow resort.
44GF Score
Get the complete analysis for XKLS:5071
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XKLS:5071 has been successfully added to your 
