Zapp Electric Vehicles GroupZAPPF WACC % is 22.1% as of Jun. 24, 2026, which is 85% above its 10-year median of 11.96. The stock has 7 warning signs investors should review. Among 1,346 Vehicles & Parts companies, Zapp Electric Vehicles Group ranks worse than 98.44% on this metric.
As of today (2026-06-24), Zapp Electric Vehicles Group's weighted average cost of capital is 22.1%%. Zapp Electric Vehicles Group's ROIC % is -83.89% (calculated using TTM income statement data).
Zapp Electric Vehicles Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Zapp Electric Vehicles Group (OTCPK:ZAPPF) 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, Zapp Electric Vehicles Group's weighted average cost of capital is 22.1%%. Zapp Electric Vehicles Group's ROIC % is -83.89% (calculated using TTM income statement data).
Zapp Electric Vehicles Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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
Zapp Electric Vehicles Group 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.
For the Auto Manufacturers subindustry, Zapp Electric Vehicles Group'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.
Zapp Electric Vehicles Group WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Zapp Electric Vehicles Group's WACC % distribution charts can be found below:
* The bar in red indicates where Zapp Electric Vehicles Group'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, Zapp Electric Vehicles Group's market capitalization (E) is $0.004 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 Mar. 2025, Zapp Electric Vehicles Group's latest one-year semi-annual average Book Value of Debt (D) is $5.784 Mil.
a) weight of equity = E / (E + D) = 0.004 / (0.004 + 5.784) = 0.0007
b) weight of debt = D / (E + D) = 5.784 / (0.004 + 5.784) = 0.9993
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 4.398%. 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. Zapp Electric Vehicles Group's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 = 4.398% + 1 * 6% = 10.398%
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 Mar. 2025, Zapp Electric Vehicles Group's interest expense (positive number) was $1.279 Mil. Its total Book Value of Debt (D) is $5.784 Mil.
Cost of Debt = 1.279 / 5.784 = 22.1127%.
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 = 0.859 / -7.438 = -11.55%, which is less than 0%. Therefore it's set to 0%.
* 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.
Zapp Electric Vehicles Group (ZAPPF) has a WACC % of 22.1% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Zapp Electric Vehicles Group and its competitors. This is 85% above median its historical median of 11.96. Over the past decade, Zapp Electric Vehicles Group's WACC % has ranged from 11.17 to 22.07. According to the industry distribution chart, Zapp Electric Vehicles Group ranks #1325 out of 1346 companies in the Vehicles & Parts industry, placing it in the top 98.4%.
Is Zapp Electric Vehicles Group's WACC % too high?
Zapp Electric Vehicles Group's current WACC % of 22.1% is 85% above median its 10-year median of 11.96. Over the past 10 years, this metric has ranged from a low of 11.17 to a high of 22.07. The Vehicles & Parts industry median WACC % is 8.61. Zapp Electric Vehicles Group's value of 22.1% is 156.8% above this industry median. Based on the distribution chart, Zapp Electric Vehicles Group ranks #1325 out of 1346 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers.
How does Zapp Electric Vehicles Group's WACC % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Zapp Electric Vehicles Group ranks #1325 out of 1346 companies for WACC %. This places Zapp Electric Vehicles Group in the lower half of its industry. The industry median WACC % is 8.61. Zapp Electric Vehicles Group's value of 22.1% is 156.8% above this benchmark. Historically, Zapp Electric Vehicles Group's own WACC % has ranged from 11.17 to 22.07 over the past decade. While the company's 10-year median is 11.96 vs. the industry median of 8.61, Zapp Electric Vehicles Group 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 Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.61, 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. Zapp Electric Vehicles Group's current WACC % of 22.1% is 156.8% 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 Zapp Electric Vehicles Group and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zapp Electric Vehicles Group's current WACC % is 22.1%, which is 85% above median its own 10-year median of 11.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zapp Electric Vehicles Group stock overvalued right now?
Zapp Electric Vehicles Group (ZAPPF) has a current WACC % of 22.1%. The current WACC % is 22.1%, which is 85% above median its 10-year median of 11.96 and 156.8% above the Vehicles & Parts industry median of 8.61. 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 Zapp Electric Vehicles Group (ZAPPF), the current WACC % is 22.1% as of Jun. 24, 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.
Zapp Electric Vehicles Group Ltd designs manufactures, and sells high-performance electric vehicles, including maintenance and repair of electric vehicles and related parts and accessories. Companies founders are automotive professionals from all over the world who share a commitment to sustainability, a long passion for electric vehicles, motorcycles, and believe in the choice of personal urban mobility. The company operates in Cayman Islands, Europe, Thailand. Maximum of revenue is from Thailand.
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