Cochin Malabar Estates & Industries (BOM:508571) WACC %:10.44% (As of Jul. 20, 2026) — 31% Above Median

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Director of Data and Quant Analytics at GuruFocus
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BOM:508571 Cochin Malabar Estates & Industries Ltd BOM:508571
27 GF Score
Price ₹140.00
! 1 Warning Sign
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What is Cochin Malabar Estates & Industries WACC %?

Cochin Malabar Estates & Industries BOM:508571 27 WACC % is 10.44% as of Jul. 20, 2026, which is 31% above its 10-year median of 8.00. GuruFocus rates BOM:508571 with a GF Score™ of 27/100. The stock has 1 warning sign investors should review. Among 2,041 Consumer Packaged Goods companies, Cochin Malabar Estates & Industries ranks worse than 75.16% on this metric.

As of today (2026-07-20), Cochin Malabar Estates & Industries's weighted average cost of capital is 10.44%%. Cochin Malabar Estates & Industries's ROIC % is -6.17% (calculated using TTM income statement data). Cochin Malabar Estates & Industries 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.


Cochin Malabar Estates & Industries  (BOM:508571) 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, Cochin Malabar Estates & Industries's weighted average cost of capital is 10.44%%. Cochin Malabar Estates & Industries's ROIC % is -6.17% (calculated using TTM income statement data). Cochin Malabar Estates & Industries 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

Cochin Malabar Estates & Industries WACC % Historical Data

* Premium members only.

The historical data trend for Cochin Malabar Estates & Industries'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.

Cochin Malabar Estates & Industries WACC % Chart

Cochin Malabar Estates & Industries Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
WACC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.95 7.67 8.10 12.05 12.41

Cochin Malabar Estates & Industries Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.05 0.00 13.13 0.00 12.41

BOM:508571 vs ADM, BG, TSN: WACC % Comparison

For the Farm Products subindustry, Cochin Malabar Estates & Industries'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.


Cochin Malabar Estates & Industries WACC % vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Cochin Malabar Estates & Industries's WACC % distribution charts can be found below:

* The bar in red indicates where Cochin Malabar Estates & Industries's WACC % falls into.


BOM:508571
27GF Score
Cochin Malabar Estates & Industries Ltd BOM:508571
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Cochin Malabar Estates & Industries WACC % Calculation

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, Cochin Malabar Estates & Industries's market capitalization (E) is ₹248.067 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, Cochin Malabar Estates & Industries's latest one-year quarterly average Book Value of Debt (D) is ₹37.0667 Mil.
a) weight of equity = E / (E + D) = 248.067 / (248.067 + 37.0667) = 0.87
b) weight of debt = D / (E + D) = 37.0667 / (248.067 + 37.0667) = 0.13

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. Cochin Malabar Estates & Industries's beta is 0.6333.
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% + 0.6333 * 6% = 10.8198%

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, Cochin Malabar Estates & Industries's interest expense (positive number) was ₹3.913 Mil. Its total Book Value of Debt (D) is ₹37.0667 Mil.
Cost of Debt = 3.913 / 37.0667 = 10.5566%.

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 = -1.548 / -6.15 = 25.17%.

Cochin Malabar Estates & Industries'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)
=0.87*10.8198%+0.13*10.5566%*(1 - 25.17%)
=10.44%

* 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.

Frequently Asked Questions Learn more about WACC % →
What does a WACC % of 10.44% mean?
Cochin Malabar Estates & Industries (BOM:508571) has a WACC % of 10.44% as of Jul. 20, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Cochin Malabar Estates & Industries and its competitors. This is 31% above median its historical median of 8.00. Over the past decade, Cochin Malabar Estates & Industries' WACC % has ranged from 6.95 to 12.41. According to the industry distribution chart, Cochin Malabar Estates & Industries ranks #1534 out of 2041 companies in the Consumer Packaged Goods industry, placing it in the top 75.2%.
Is Cochin Malabar Estates & Industries' WACC % too high?
Cochin Malabar Estates & Industries' current WACC % of 10.44% is 31% above median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 6.95 to a high of 12.41. The Consumer Packaged Goods industry median WACC % is 7.62. Cochin Malabar Estates & Industries' value of 10.44% is 37% above this industry median. Based on the distribution chart, Cochin Malabar Estates & Industries ranks #1534 out of 2041 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Cochin Malabar Estates & Industries has a GF Score™ of 27/100, reflecting its overall financial health beyond just this single metric.
How does Cochin Malabar Estates & Industries' WACC % compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, Cochin Malabar Estates & Industries ranks #1534 out of 2041 companies for WACC %. This places Cochin Malabar Estates & Industries in the lower half of its industry. The industry median WACC % is 7.62. Cochin Malabar Estates & Industries' value of 10.44% is 37% above this benchmark. Historically, Cochin Malabar Estates & Industries' own WACC % has ranged from 6.95 to 12.41 over the past decade. While the company's 10-year median is 8.00 vs. the industry median of 7.62, Cochin Malabar Estates & Industries 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 Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.62, based on 2,041 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. Cochin Malabar Estates & Industries's current WACC % of 10.44% is 37% 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 Cochin Malabar Estates & Industries and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cochin Malabar Estates & Industries's current WACC % is 10.44%, which is 31% above median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cochin Malabar Estates & Industries stock overvalued right now?
Cochin Malabar Estates & Industries (BOM:508571) has a current WACC % of 10.44%. The current WACC % is 10.44%, which is 31% above median its 10-year median of 8.00 and 37% above the Consumer Packaged Goods industry median of 7.62. Cochin Malabar Estates & Industries' overall GF Score™ is 27/100 with 1 warning sign 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 Cochin Malabar Estates & Industries (BOM:508571), the current WACC % is 10.44% as of Jul. 20, 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.

Cochin Malabar Estates & Industries Business Description

Address 21, Strand Road, Kolkata, WB, IND, 700 001
Cochin Malabar Estates & Industries Ltd is engaged in carrying on the business of rubber and tea plantations in the States of Kerala and Karnataka. The company's product, latex, is processed into a stabilized concentrated form of latex, smoked sheets, crepes, and crumb/block rubber in a wide variety of grades. Currently, the company's Rubber wood factory is not in operation, and it is developing land assets in Goa.
27GF Score

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