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Garware Hi-Tech FilmsBOM:500655 -0.06%62 WACC % is 12.74% as of Jul. 14, 2026, which is 5% above its 10-year median of 12.10. GuruFocus rates BOM:500655 with a GF Score™ of 62/100 and a GF Value™ of ₹3,354.55 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,629 Chemicals companies, Garware Hi-Tech Films ranks worse than 80.6% on this metric.
As of today (2026-07-14), Garware Hi-Tech Films's weighted average cost of capital is 12.74%%. Garware Hi-Tech Films's ROIC % is 15.09% (calculated using TTM income statement data).
Garware Hi-Tech Films 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.
Garware Hi-Tech Films (BOM:500655) 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, Garware Hi-Tech Films's weighted average cost of capital is 12.74%%. Garware Hi-Tech Films's ROIC % is 15.09% (calculated using TTM income statement data).
Garware Hi-Tech Films 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.
* 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 Specialty Chemicals subindustry, Garware Hi-Tech Films'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.
Garware Hi-Tech Films WACC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Garware Hi-Tech Films's WACC % distribution charts can be found below:
* The bar in red indicates where Garware Hi-Tech Films'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, Garware Hi-Tech Films's market capitalization (E) is ₹163468.932 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, Garware Hi-Tech Films's latest one-year quarterly average Book Value of Debt (D) is ₹164.2667 Mil.
a) weight of equity = E / (E + D) = 163468.932 / (163468.932 + 164.2667) = 0.999
b) weight of debt = D / (E + D) = 164.2667 / (163468.932 + 164.2667) = 0.001
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. Garware Hi-Tech Films's beta is 0.9487.
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% + 0.9487 * 6% = 12.7122%
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, Garware Hi-Tech Films's interest expense (positive number) was ₹82 Mil. Its total Book Value of Debt (D) is ₹164.2667 Mil.
Cost of Debt = 82 / 164.2667 = 49.9188%.
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 = 1079.9 / 4462.2 = 24.2%.
Garware Hi-Tech Films'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)
=
0.999
*
12.7122%
+
0.001
*
49.9188%
*
(1 - 24.2%)
=
12.74%
* 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.
Garware Hi-Tech Films (BOM:500655) has a WACC % of 12.74% as of Jul. 14, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Garware Hi-Tech Films and its competitors. This is near median its historical median of 12.10. Over the past decade, Garware Hi-Tech Films' WACC % has ranged from 6.09 to 15.03. According to the industry distribution chart, Garware Hi-Tech Films ranks #1313 out of 1629 companies in the Chemicals industry, placing it in the top 80.6%.
Is Garware Hi-Tech Films' WACC % too high?
Garware Hi-Tech Films' current WACC % of 12.74% is near median its 10-year median of 12.10. Over the past 10 years, this metric has ranged from a low of 6.09 to a high of 15.03. The Chemicals industry median WACC % is 9.17. Garware Hi-Tech Films' value of 12.74% is 38.9% above this industry median. Based on the distribution chart, Garware Hi-Tech Films ranks #1313 out of 1629 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Garware Hi-Tech Films has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Garware Hi-Tech Films' WACC % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Garware Hi-Tech Films ranks #1313 out of 1629 companies for WACC %. This places Garware Hi-Tech Films in the lower half of its industry. The industry median WACC % is 9.17. Garware Hi-Tech Films' value of 12.74% is 38.9% above this benchmark. Historically, Garware Hi-Tech Films' own WACC % has ranged from 6.09 to 15.03 over the past decade. While the company's 10-year median is 12.10 vs. the industry median of 9.17, Garware Hi-Tech Films 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 Chemicals company?
The median WACC % among Chemicals companies is 9.17, based on 1,629 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. Garware Hi-Tech Films's current WACC % of 12.74% is 38.9% 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 Garware Hi-Tech Films and its competitors. For the Chemicals industry, the median WACC % is 9.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Garware Hi-Tech Films's current WACC % is 12.74%, which is near median its own 10-year median of 12.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Garware Hi-Tech Films stock overvalued right now?
Based on GuruFocus' analysis, Garware Hi-Tech Films (BOM:500655) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹3,354.55, compared to a current price of ₹7,036.25 — trading 109.8% above its estimated fair value. The current WACC % is 12.74%, which is near median its 10-year median of 12.10 and 38.9% above the Chemicals industry median of 9.17. Garware Hi-Tech Films' overall GF Score™ is 62/100 with 6 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 Garware Hi-Tech Films (BOM:500655), the current WACC % is 12.74% as of Jul. 14, 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 Garware Hi-Tech Films (BOM:500655) Overvalued in 2026?
Based on GuruFocus' analysis, Garware Hi-Tech Films stock appears to be overvalued.
The current stock price of ₹7,036.25 is trading 109.8% above its estimated GF Value™ of ₹3,354.55.
GuruFocus considers Garware Hi-Tech Films to be Significantly Overvalued.
Key valuation signals for BOM:500655:
WACC %: 12.74% (near median its 10-year median of 12.10)
GF Value™: ₹3,354.55 vs. price of ₹7,036.25 (109.8% above fair value)
Industry Position: 38.9% above the Chemicals median (#1313 of 1629)
No single metric tells the full story. See the BOM:500655 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Garware Hi-Tech Films Ltd is engaged in the business of manufacturing & Trading of specialty performance polyester Films like Sun Control window films used in Automobiles, Buildings, Paint Protection Films used in Automobiles and a variety of other specialty polyester films such as PET Shrink films used for Label applications, Low Oligomer PET films used for insulation of hermetically sealed compressors motors, Electric motor insulation and cable insulation, sequin application films, TV and LCD screen application, Packaging applications etc. The company leverages its nano-dispersion and other cutting-edge technologies and other cutting-edge technologies to maintain its market. Geographically, the company derives maximum revenue from USA customers. It has one segment: Polyester films.
62GF Score
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