Knorr-Bremse AGXSWX:KBX 83 WACC % is 2.52% as of Jun. 25, 2026, which is 58% below its 10-year median of 6.05. GuruFocus rates XSWX:KBX with a GF Score™ of 83/100 and a GF Value™ of CHF68.27. The stock has 3 warning signs investors should review. Among 1,346 Vehicles & Parts companies, Knorr-Bremse AG ranks better than 51.63% on this metric.
As of today (2026-06-25), Knorr-Bremse AG's weighted average cost of capital is 2.52%%. Knorr-Bremse AG's ROIC % is 11.06% (calculated using TTM income statement data).
Knorr-Bremse AG 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.
Knorr-Bremse AG (XSWX:KBX) 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, Knorr-Bremse AG's weighted average cost of capital is 2.52%%. Knorr-Bremse AG's ROIC % is 11.06% (calculated using TTM income statement data).
Knorr-Bremse AG 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
Knorr-Bremse AG WACC % Historical Data
* Premium members only.
The historical data trend for Knorr-Bremse 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 Auto Parts subindustry, Knorr-Bremse 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.
Knorr-Bremse AG WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Knorr-Bremse AG's WACC % distribution charts can be found below:
* The bar in red indicates where Knorr-Bremse 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, Knorr-Bremse AG's market capitalization (E) is CHF15047.224 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, Knorr-Bremse AG's latest one-year quarterly average Book Value of Debt (D) is CHF3785.629 Mil.
a) weight of equity = E / (E + D) = 15047.224 / (15047.224 + 3785.629) = 0.799
b) weight of debt = D / (E + D) = 3785.629 / (15047.224 + 3785.629) = 0.201
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 3.0465%. 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. Knorr-Bremse AG's beta is -0.0699.
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 = 3.0465% + -0.0699 * 6% = 2.6271%
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, Knorr-Bremse AG's interest expense (positive number) was CHF114.304 Mil. Its total Book Value of Debt (D) is CHF3785.629 Mil.
Cost of Debt = 114.304 / 3785.629 = 3.0194%.
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 = 236.04 / 782.902 = 30.15%.
Knorr-Bremse 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)
=
0.799
*
2.6271%
+
0.201
*
3.0194%
*
(1 - 30.15%)
=
2.52%
* 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.
Knorr-Bremse AG (XSWX:KBX) has a WACC % of 2.52% 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 Knorr-Bremse AG and its competitors. This is 58% below median its historical median of 6.05. Over the past decade, Knorr-Bremse AG's WACC % has ranged from 2.49 to 8.66. According to the industry distribution chart, Knorr-Bremse AG ranks #651 out of 1346 companies in the Vehicles & Parts industry, placing it in the top 48.4%.
Is Knorr-Bremse AG's WACC % too high?
Knorr-Bremse AG's current WACC % of 2.52% is 58% below median its 10-year median of 6.05. Over the past 10 years, this metric has ranged from a low of 2.49 to a high of 8.66. The Vehicles & Parts industry median WACC % is 8.59. Knorr-Bremse AG's value of 2.52% is 70.6% below this industry median. Based on the distribution chart, Knorr-Bremse AG ranks #651 out of 1346 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Knorr-Bremse AG has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Knorr-Bremse AG's WACC % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Knorr-Bremse AG ranks #651 out of 1346 companies for WACC %. This puts Knorr-Bremse AG in the upper half of its industry. The industry median WACC % is 8.59. Knorr-Bremse AG's value of 2.52% is 70.6% below this benchmark. Historically, Knorr-Bremse AG's own WACC % has ranged from 2.49 to 8.66 over the past decade. While the company's 10-year median is 6.05 vs. the industry median of 8.59, Knorr-Bremse AG 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 Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.59, based on 1,346 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. Knorr-Bremse AG's current WACC % of 2.52% is 70.6% 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 Knorr-Bremse AG and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knorr-Bremse AG's current WACC % is 2.52%, which is 58% below median its own 10-year median of 6.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knorr-Bremse AG stock overvalued right now?
Knorr-Bremse AG (XSWX:KBX) has a current WACC % of 2.52%. The stock's GF Value™ is CHF68.27, compared to a current price of CHF94.40 — trading 38.3% above its estimated fair value. The current WACC % is 2.52%, which is 58% below median its 10-year median of 6.05 and 70.6% below the Vehicles & Parts industry median of 8.59. Knorr-Bremse AG's overall GF Score™ is 83/100 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 Knorr-Bremse AG (XSWX:KBX), the current WACC % is 2.52% 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 Knorr-Bremse AG (XSWX:KBX) Overvalued in 2026?
Based on GuruFocus' analysis, Knorr-Bremse AG stock appears to be overvalued.
The current stock price of CHF94.40 is trading 38.3% above its estimated GF Value™ of CHF68.27.
Key valuation signals for XSWX:KBX:
WACC %: 2.52% (58% below median its 10-year median of 6.05)
GF Value™: CHF68.27 vs. price of CHF94.40 (38.3% above fair value)
Industry Position: 70.6% below the Vehicles & Parts median (#651 of 1346)
No single metric tells the full story. See the XSWX:KBX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knorr-Bremse AG is engaged in the development, production, marketing, and servicing of Automotive parts. It operates its business activities in two divisions: Rail Vehicle Systems and Commercial Vehicle Systems. Its product portfolio comprises Braking, entrance, and HVAC systems; power electric and control technology; digital solutions; couplers; signal systems; pneumatic braking systems; energy supply and distribution systems; wiper and wash systems; and others. Maximum of revenue is from Rail Vehicle System. Its geographical segments are Europe/Africa, North America, South America, and Asia-Pacific. The majority of its revenue is from Europe/Africa.
83GF Score
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