As of today (2026-07-09), Golden Tobacco's weighted average cost of capital is 20.89%%. Golden Tobacco's ROIC % is 0.00% (calculated using TTM income statement data).
Golden Tobacco 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.
Golden Tobacco (BOM:500151) 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, Golden Tobacco's weighted average cost of capital is 20.89%%. Golden Tobacco's ROIC % is 0.00% (calculated using TTM income statement data).
Golden Tobacco 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
Golden Tobacco WACC % Historical Data
* Premium members only.
The historical data trend for Golden Tobacco'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 Tobacco subindustry, Golden Tobacco'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.
Golden Tobacco WACC % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Golden Tobacco's WACC % distribution charts can be found below:
* The bar in red indicates where Golden Tobacco'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, Golden Tobacco's market capitalization (E) is ₹440.220 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 Sep. 2021, Golden Tobacco's latest one-year quarterly average Book Value of Debt (D) is ₹21.073 Mil.
a) weight of equity = E / (E + D) = 440.220 / (440.220 + 21.073) = 0.9543
b) weight of debt = D / (E + D) = 21.073 / (440.220 + 21.073) = 0.0457
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 7.02%. 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. Golden Tobacco's beta is 1.0138.
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 = 7.02% + 1.0138 * 6% = 13.1028%
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 Sep. 2021, Golden Tobacco's interest expense (positive number) was ₹41.652 Mil. Its total Book Value of Debt (D) is ₹21.073 Mil.
Cost of Debt = 41.652 / 21.073 = 197.6558%.
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 = 6.14 / 85.376 = 7.19%.
Golden Tobacco'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)
=
0.9543
*
13.1028%
+
0.0457
*
197.6558%
*
(1 - 7.19%)
=
20.89%
* 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.
Golden Tobacco (BOM:500151) has a WACC % of 20.89% as of Jul. 09, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Golden Tobacco and its competitors.
Is Golden Tobacco's WACC % too high?
Golden Tobacco's current WACC % is 20.89%. The Tobacco Products industry median WACC % is 7.16. Golden Tobacco's value of 20.89% is 191.8% above this industry median. Overall, Golden Tobacco has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Golden Tobacco's WACC % compare to PM and MO?
Golden Tobacco's WACC % of 20.89% can be compared against companies in the Tobacco Products industry. The industry median WACC % is 7.16. Golden Tobacco's value of 20.89% is 191.8% above this benchmark. 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 Tobacco Products company?
The median WACC % among Tobacco Products companies is 7.16, based on 51 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. Golden Tobacco's current WACC % of 20.89% is 191.8% 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 Golden Tobacco and its competitors. For the Tobacco Products industry, the median WACC % is 7.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Golden Tobacco's current WACC % is 20.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Golden Tobacco stock overvalued right now?
Golden Tobacco (BOM:500151) has a current WACC % of 20.89%. The current WACC % is 20.89% and 191.8% above the Tobacco Products industry median of 7.16. Golden Tobacco's overall GF Score™ is 4/100. 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 Golden Tobacco (BOM:500151), the current WACC % is 20.89% as of Jul. 09, 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.
Golden Tobacco Ltd is an Indian based firm engaged in the business of Tobacco. The company is primarily involved in the manufacturing of cigarettes and cigars. Its operating segment includes Tobacco Products and Realty. The company generates maximum revenue from Realty segment. It sells cigarettes and cigars under various brands such as Panama, Chancellor, Golden's, and Steel.
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