Forbo Holding AGXSWX:FORN +0.41%73 WACC % is 8.8% as of Jun. 25, 2026, which is 28% above its 10-year median of 6.86. GuruFocus rates XSWX:FORN with a GF Score™ of 73/100 and a GF Value™ of CHF879.59 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,809 Construction companies, Forbo Holding AG ranks worse than 57.27% on this metric.
As of today (2026-06-25), Forbo Holding AG's weighted average cost of capital is 8.8%%. Forbo Holding AG's ROIC % is 8.78% (calculated using TTM income statement data).
Forbo Holding AG 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.
Forbo Holding AG (XSWX:FORN) 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, Forbo Holding AG's weighted average cost of capital is 8.8%%. Forbo Holding AG's ROIC % is 8.78% (calculated using TTM income statement data).
Forbo Holding AG 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 semi-annual 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 semi-annual average debt to get the simplified cost of debt.
Related Terms
Forbo Holding AG WACC % Historical Data
* Premium members only.
The historical data trend for Forbo Holding AG'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 Building Products & Equipment subindustry, Forbo Holding AG'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.
Forbo Holding AG WACC % vs Construction Industry
For the Construction industry and Industrials sector, Forbo Holding AG's WACC % distribution charts can be found below:
* The bar in red indicates where Forbo Holding AG'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, Forbo Holding AG's market capitalization (E) is CHF1048.624 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 semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Forbo Holding AG's latest one-year semi-annual average Book Value of Debt (D) is CHF0 Mil.
a) weight of equity = E / (E + D) = 1048.624 / (1048.624 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (1048.624 + 0) = 0
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 0.44%. 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. Forbo Holding AG's beta is 1.3941.
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 = 0.44% + 1.3941 * 6% = 8.8046%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, Forbo Holding AG's interest expense (positive number) was CHF1.2 Mil. Its total Book Value of Debt (D) is CHF0 Mil.
Cost of Debt = 1.2 / 0 = %.
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 = 18 / 86.9 = 20.71%.
Forbo Holding AG'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)
=
1
*
8.8046%
+
0
*
%
*
(1 - 20.71%)
=
8.8%
* 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.
Forbo Holding AG (XSWX:FORN) has a WACC % of 8.8% 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 Forbo Holding AG and its competitors. This is 28% above median its historical median of 6.86. According to the industry distribution chart, Forbo Holding AG ranks #1036 out of 1809 companies in the Construction industry, placing it in the top 57.3%.
Is Forbo Holding AG's WACC % too high?
Forbo Holding AG's current WACC % of 8.8% is 28% above median its 10-year median of 6.86. The Construction industry median WACC % is 7.78. Forbo Holding AG's value of 8.8% is 13.1% above this industry median. Based on the distribution chart, Forbo Holding AG ranks #1036 out of 1809 companies in the Construction industry, which is below the industry midpoint. Overall, Forbo Holding AG has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Forbo Holding AG's WACC % compare to TT and JCI?
According to the Construction industry distribution chart, Forbo Holding AG ranks #1036 out of 1809 companies for WACC %. This places Forbo Holding AG in the lower half of its industry. The industry median WACC % is 7.78. Forbo Holding AG's value of 8.8% is 13.1% above this benchmark. While the company's 10-year median is 6.86 vs. the industry median of 7.78, Forbo Holding AG 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 a Construction company?
The median WACC % among Construction companies is 7.78, based on 1,809 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. Forbo Holding AG's current WACC % of 8.8% is 13.1% 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 Forbo Holding AG and its competitors. For the Construction industry, the median WACC % is 7.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forbo Holding AG's current WACC % is 8.8%, which is 28% above median its own 10-year median of 6.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forbo Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Forbo Holding AG (XSWX:FORN) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF879.59, compared to a current price of CHF739.00 — trading 16% below its estimated fair value. The current WACC % is 8.8%, which is 28% above median its 10-year median of 6.86 and 13.1% above the Construction industry median of 7.78. Forbo Holding AG's overall GF Score™ is 73/100 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 Forbo Holding AG (XSWX:FORN), the current WACC % is 8.8% 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 Forbo Holding AG (XSWX:FORN) Overvalued in 2026?
Based on GuruFocus' analysis, Forbo Holding AG stock appears to be undervalued.
The current stock price of CHF739.00 is trading 16% below its estimated GF Value™ of CHF879.59.
GuruFocus considers Forbo Holding AG to be Modestly Undervalued.
Key valuation signals for XSWX:FORN:
WACC %: 8.8% (28% above median its 10-year median of 6.86)
GF Value™: CHF879.59 vs. price of CHF739.00 (16% below fair value)
Industry Position: 13.1% above the Construction median (#1036 of 1809)
No single metric tells the full story. See the XSWX:FORN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Forbo Holding AG manufactures and sells flooring and movement systems. The company organizes itself into two segments based on product type. The Flooring Systems segment, which generates the majority of revenue, sells commercial and residential floor coverings, entrance flooring systems, and building and construction flooring adhesives to the construction and remodeling industries. The Movement Systems segment sells conveyor and processing belts, plastic modular belts, power transmission belts, and flat modular belts, to the food, automotive, and fitness equipment industries. The majority of revenue comes from Europe, and also has its presence in Americas and Asia/Pacific and Africa.
73GF Score
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