Farm Fresh BhdXKLS:5306 +0.44%86 WACC % is 7.62% as of Jun. 30, 2026, which is 0% below its 10-year median of 7.65. GuruFocus rates XKLS:5306 with a GF Score™ of 86/100 and a GF Value™ of RM2.21 (Fairly Valued). The stock has 2 warning signs investors should review. Among 2,034 Consumer Packaged Goods companies, Farm Fresh Bhd ranks better than 50.54% on this metric.
As of today (2026-06-30), Farm Fresh Bhd's weighted average cost of capital is 7.62%%. Farm Fresh Bhd's ROIC % is 11.98% (calculated using TTM income statement data).
Farm Fresh 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.
Farm Fresh Bhd (XKLS:5306) 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, Farm Fresh Bhd's weighted average cost of capital is 7.62%%. Farm Fresh Bhd's ROIC % is 11.98% (calculated using TTM income statement data).
Farm Fresh 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
Farm Fresh Bhd WACC % Historical Data
* Premium members only.
The historical data trend for Farm Fresh 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, Farm Fresh 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.
Farm Fresh Bhd WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Farm Fresh Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where Farm Fresh 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, Farm Fresh Bhd's market capitalization (E) is RM4334.934 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, Farm Fresh Bhd's latest one-year quarterly average Book Value of Debt (D) is RM514.9892 Mil.
a) weight of equity = E / (E + D) = 4334.934 / (4334.934 + 514.9892) = 0.8938
b) weight of debt = D / (E + D) = 514.9892 / (4334.934 + 514.9892) = 0.1062
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 4.367%. 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. Farm Fresh Bhd's beta is 0.6286.
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 = 4.367% + 0.6286 * 6% = 8.1386%
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, Farm Fresh Bhd's interest expense (positive number) was RM18.462 Mil. Its total Book Value of Debt (D) is RM514.9892 Mil.
Cost of Debt = 18.462 / 514.9892 = 3.5849%.
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 = 13.07 / 142.894 = 9.15%.
Farm Fresh 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)
=
0.8938
*
8.1386%
+
0.1062
*
3.5849%
*
(1 - 9.15%)
=
7.62%
* 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.
Farm Fresh Bhd (XKLS:5306) has a WACC % of 7.62% 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 Farm Fresh Bhd and its competitors. This is near median its historical median of 7.65. Over the past decade, Farm Fresh Bhd's WACC % has ranged from 6.00 to 9.31. According to the industry distribution chart, Farm Fresh Bhd ranks #1006 out of 2034 companies in the Consumer Packaged Goods industry, placing it in the top 49.5%.
Is Farm Fresh Bhd's WACC % too high?
Farm Fresh Bhd's current WACC % of 7.62% is near median its 10-year median of 7.65. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 9.31. The Consumer Packaged Goods industry median WACC % is 7.69. Farm Fresh Bhd's value of 7.62% is 0.9% below this industry median. Based on the distribution chart, Farm Fresh Bhd ranks #1006 out of 2034 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Farm Fresh Bhd has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Farm Fresh Bhd's WACC % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Farm Fresh Bhd ranks #1006 out of 2034 companies for WACC %. This puts Farm Fresh Bhd in the upper half of its industry. The industry median WACC % is 7.69. Farm Fresh Bhd's value of 7.62% is 0.9% below this benchmark. Historically, Farm Fresh Bhd's own WACC % has ranged from 6.00 to 9.31 over the past decade. While the company's 10-year median is 7.65 vs. the industry median of 7.69, Farm Fresh 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 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. Farm Fresh Bhd's current WACC % of 7.62% is 0.9% 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 Farm Fresh 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. Farm Fresh Bhd's current WACC % is 7.62%, which is near median its own 10-year median of 7.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Farm Fresh Bhd stock overvalued right now?
Based on GuruFocus' analysis, Farm Fresh Bhd (XKLS:5306) is currently considered Fairly Valued. The stock's GF Value™ is RM2.21, compared to a current price of RM2.30 — trading 4.1% above its estimated fair value. The current WACC % is 7.62%, which is near median its 10-year median of 7.65 and 0.9% below the Consumer Packaged Goods industry median of 7.69. Farm Fresh Bhd's overall GF Score™ is 86/100 with 2 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 Farm Fresh Bhd (XKLS:5306), the current WACC % is 7.62% 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 Farm Fresh Bhd (XKLS:5306) Overvalued in 2026?
Based on GuruFocus' analysis, Farm Fresh Bhd stock appears to be overvalued.
The current stock price of RM2.30 is trading 4.1% above its estimated GF Value™ of RM2.21.
GuruFocus considers Farm Fresh Bhd to be Fairly Valued.
Key valuation signals for XKLS:5306:
WACC %: 7.62% (near median its 10-year median of 7.65)
GF Value™: RM2.21 vs. price of RM2.30 (4.1% above fair value)
Industry Position: 0.9% below the Consumer Packaged Goods median (#1006 of 2034)
No single metric tells the full story. See the XKLS:5306 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Farm Fresh Bhd is engaged in investment holding, rearing of dairy cows, and the production, marketing, and sale of cow's milk and plant-based related products. The company's product portfolio comprises yogurt, plant-based milk, goat's milk, fresh milk, flavoured milk, yogurt drinks, etc. Its reportable segments are Malaysia's operation and Australia's operation. The majority of the company's revenue is generated from Malaysia's operation segment, which includes the rearing of dairy cows and goats; and production, marketing, and sale of cows' and goat's milk, yogurt, plant-based ice cream, and a range of other products; and agrotourism. Geographically, the company generates maximum revenue from Malaysia, and the rest from Australia, Singapore, and other regions.
86GF Score
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