Magma Group BhdXKLS:7243 25 WACC % is -4.58% as of Jun. 29, 2026. GuruFocus rates XKLS:7243 with a GF Score™ of 25/100 and a GF Value™ of RM0.11 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 871 Travel & Leisure companies, Magma Group Bhd ranks better than 99.31% on this metric.
As of today (2026-06-29), Magma Group Bhd's weighted average cost of capital is -4.58%%. Magma Group Bhd's ROIC % is -15.98% (calculated using TTM income statement data).
Magma Group 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.
Magma Group Bhd (XKLS:7243) 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, Magma Group Bhd's weighted average cost of capital is -4.58%%. Magma Group Bhd's ROIC % is -15.98% (calculated using TTM income statement data).
Magma Group 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
Magma Group Bhd WACC % Historical Data
* Premium members only.
The historical data trend for Magma Group 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 Lodging subindustry, Magma Group 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.
Magma Group Bhd WACC % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Magma Group Bhd's WACC % distribution charts can be found below:
* The bar in red indicates where Magma Group 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, Magma Group Bhd's market capitalization (E) is RM495.674 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, Magma Group Bhd's latest one-year quarterly average Book Value of Debt (D) is RM110.4196 Mil.
a) weight of equity = E / (E + D) = 495.674 / (495.674 + 110.4196) = 0.8178
b) weight of debt = D / (E + D) = 110.4196 / (495.674 + 110.4196) = 0.1822
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 4.378%. 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. Magma Group Bhd's beta is -1.9341.
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 = 4.378% + -1.9341 * 6% = -7.2266%
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, Magma Group Bhd's interest expense (positive number) was RM8.045 Mil. Its total Book Value of Debt (D) is RM110.4196 Mil.
Cost of Debt = 8.045 / 110.4196 = 7.2858%.
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 = 2.627 / -52.027 = -5.05%, which is less than 0%. Therefore it's set to 0%.
Magma Group 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)
=
0.8178
*
-7.2266%
+
0.1822
*
7.2858%
*
(1 - 0%)
=
-4.58%
* 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.
Magma Group Bhd (XKLS:7243) has a WACC % of -4.58% as of Jun. 29, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Magma Group Bhd and its competitors. According to the industry distribution chart, Magma Group Bhd ranks #6 out of 871 companies in the Travel & Leisure industry, placing it in the top 0.7%.
Is Magma Group Bhd's WACC % too high?
Magma Group Bhd's current WACC % is -4.58%. Based on the distribution chart, Magma Group Bhd ranks #6 out of 871 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, Magma Group Bhd has a GF Score™ of 25/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magma Group Bhd's WACC % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Magma Group Bhd ranks #6 out of 871 companies for WACC %. This places Magma Group Bhd in the top 1% of its industry — outperforming the majority of peers. The industry median WACC % is 7.69. 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 Travel & Leisure company?
The median WACC % among Travel & Leisure companies is 7.69, based on 871 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 Magma Group Bhd and its competitors. For the Travel & Leisure industry, the median WACC % is 7.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magma Group Bhd's current WACC % is -4.58%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magma Group Bhd stock overvalued right now?
Based on GuruFocus' analysis, Magma Group Bhd (XKLS:7243) is currently considered Significantly Overvalued. The stock's GF Value™ is RM0.11, compared to a current price of RM0.29 — trading 159.1% above its estimated fair value. The current WACC % is -4.58%. Magma Group Bhd's overall GF Score™ is 25/100 with 6 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 Magma Group Bhd (XKLS:7243), the current WACC % is -4.58% as of Jun. 29, 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 Magma Group Bhd (XKLS:7243) Overvalued in 2026?
Based on GuruFocus' analysis, Magma Group Bhd stock appears to be overvalued.
The current stock price of RM0.29 is trading 159.1% above its estimated GF Value™ of RM0.11.
GuruFocus considers Magma Group Bhd to be Significantly Overvalued.
Key valuation signals for XKLS:7243:
WACC %: -4.58%
GF Value™: RM0.11 vs. price of RM0.29 (159.1% above fair value)
No single metric tells the full story. See the XKLS:7243 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magma Group Bhd is an investment holding company. Along with its subsidiaries, the company operates in the hospitality industry in Malaysia. The company manages hotel properties and undertakes related hospitality activities. Its hotel properties include Wolo Kuala Lumpur, Impiana KLCC Hotel, Impiana Hotel Ipoh, and Impiana Hotel Senai. The company is organised into three operating segments: (i) Hospitality business: Management and operation of hotels and resorts, property investment and hotel development, (ii) Property development: Property development activities, and Others. The majority of the company's revenue is derived from the Hospitality business.
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