As of today (2026-06-25), Compania Chilena de Fosforos's weighted average cost of capital is 4.39%%. Compania Chilena de Fosforos's ROIC % is -2.15% (calculated using TTM income statement data).
Compania Chilena de Fosforos 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.
Compania Chilena de Fosforos (XSGO:FOSFOROS) 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, Compania Chilena de Fosforos's weighted average cost of capital is 4.39%%. Compania Chilena de Fosforos's ROIC % is -2.15% (calculated using TTM income statement data).
Compania Chilena de Fosforos 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
Compania Chilena de Fosforos WACC % Historical Data
* 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.
XSGO:FOSFOROS vs SSD, UFPI, BCC: WACC % Comparison
For the Lumber & Wood Production subindustry, Compania Chilena de Fosforos'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.
Compania Chilena de Fosforos WACC % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Compania Chilena de Fosforos's WACC % distribution charts can be found below:
* The bar in red indicates where Compania Chilena de Fosforos'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, Compania Chilena de Fosforos's market capitalization (E) is CLP23369.385 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, Compania Chilena de Fosforos's latest one-year quarterly average Book Value of Debt (D) is CLP36409.668 Mil.
a) weight of equity = E / (E + D) = 23369.385 / (23369.385 + 36409.668) = 0.3909
b) weight of debt = D / (E + D) = 36409.668 / (23369.385 + 36409.668) = 0.6091
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 5.4647%. 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. Compania Chilena de Fosforos's beta is -0.4234.
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 = 5.4647% + -0.4234 * 6% = 2.9243%
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, Compania Chilena de Fosforos's interest expense (positive number) was CLP2702.464 Mil. Its total Book Value of Debt (D) is CLP36409.668 Mil.
Cost of Debt = 2702.464 / 36409.668 = 7.4224%.
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 = -2297.237 / -8122.148 = 28.28%.
* 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.
Compania Chilena de Fosforos (XSGO:FOSFOROS) has a WACC % of 4.39% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Compania Chilena de Fosforos and its competitors. This is near median its historical median of 4.74. Over the past decade, Compania Chilena de Fosforos' WACC % has ranged from 2.24 to 7.06. According to the industry distribution chart, Compania Chilena de Fosforos ranks #75 out of 292 companies in the Forest Products industry, placing it in the top 25.7%.
Is Compania Chilena de Fosforos' WACC % too high?
Compania Chilena de Fosforos' current WACC % of 4.39% is near median its 10-year median of 4.74. Over the past 10 years, this metric has ranged from a low of 2.24 to a high of 7.06. The Forest Products industry median WACC % is 7.47. Compania Chilena de Fosforos' value of 4.39% is 41.2% below this industry median. Based on the distribution chart, Compania Chilena de Fosforos ranks #75 out of 292 companies in the Forest Products industry, which is above the industry midpoint. Overall, Compania Chilena de Fosforos has a GF Score™ of 61/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Compania Chilena de Fosforos' WACC % compare to SSD and UFPI?
According to the Forest Products industry distribution chart, Compania Chilena de Fosforos ranks #75 out of 292 companies for WACC %. This puts Compania Chilena de Fosforos in the upper half of its industry. The industry median WACC % is 7.47. Compania Chilena de Fosforos' value of 4.39% is 41.2% below this benchmark. Historically, Compania Chilena de Fosforos' own WACC % has ranged from 2.24 to 7.06 over the past decade. While the company's 10-year median is 4.74 vs. the industry median of 7.47, Compania Chilena de Fosforos 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 Forest Products company?
The median WACC % among Forest Products companies is 7.47, 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. Compania Chilena de Fosforos's current WACC % of 4.39% is 41.2% 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 Compania Chilena de Fosforos and its competitors. For the Forest Products industry, the median WACC % is 7.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compania Chilena de Fosforos's current WACC % is 4.39%, which is near median its own 10-year median of 4.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compania Chilena de Fosforos stock overvalued right now?
Based on GuruFocus' analysis, Compania Chilena de Fosforos (XSGO:FOSFOROS) is currently considered Modestly Undervalued. The stock's GF Value™ is CLP456.75, compared to a current price of CLP379.99 — trading 16.8% below its estimated fair value. The current WACC % is 4.39%, which is near median its 10-year median of 4.74 and 41.2% below the Forest Products industry median of 7.47. Compania Chilena de Fosforos' overall GF Score™ is 61/100 with 8 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 Compania Chilena de Fosforos (XSGO:FOSFOROS), the current WACC % is 4.39% as of Jun. 25, 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 Compania Chilena de Fosforos (XSGO:FOSFOROS) Overvalued in 2026?
Based on GuruFocus' analysis, Compania Chilena de Fosforos stock appears to be undervalued.
The current stock price of CLP379.99 is trading 16.8% below its estimated GF Value™ of CLP456.75.
GuruFocus considers Compania Chilena de Fosforos to be Modestly Undervalued.
Key valuation signals for XSGO:FOSFOROS:
WACC %: 4.39% (near median its 10-year median of 4.74)
GF Value™: CLP456.75 vs. price of CLP379.99 (16.8% below fair value)
Industry Position: 41.2% below the Forest Products median (#75 of 292)
No single metric tells the full story. See the XSGO:FOSFOROS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compania Chilena de Fosforos SA manufactures and trades safety matches and various other microwood products. Its product offerings include splints, matches, ice cream sticks, chopsticks, and paint palettes among others. It is also involved in agriculture, and fruit plantations by producing and marketing fruits such as blueberries, apples, wine grapes, and cherries. The company's operating segments are; Products associated with ignition, Agricultural activity, and Wood products. Maximum revenue is derived from the Products associated with ignition segment which includes the sale of household matches. Geographically, a majority of the firm's revenue is generated through the export of its products to markets like the United States, Peru, Brazil, Fiji, Japan, Europe, China, and others.
61GF Score
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