Tourism Finance of IndiaBOM:526650 -4.92%51 WACC % is 9.44% as of Jul. 09, 2026, which is 56% above its 10-year median of 6.04. GuruFocus rates BOM:526650 with a GF Score™ of 51/100 and a GF Value™ of ₹39.81 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 553 Credit Services companies, Tourism Finance of India ranks worse than 67.27% on this metric.
As of today (2026-07-09), Tourism Finance of India's weighted average cost of capital is 9.44%%. Tourism Finance of India's ROIC % is 5.71% (calculated using TTM income statement data).
Tourism Finance of India 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.
Tourism Finance of India (BOM:526650) 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, Tourism Finance of India's weighted average cost of capital is 9.44%%. Tourism Finance of India's ROIC % is 5.71% (calculated using TTM income statement data).
Tourism Finance of India 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.
* 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 Credit Services subindustry, Tourism Finance of India'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.
Tourism Finance of India WACC % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Tourism Finance of India's WACC % distribution charts can be found below:
* The bar in red indicates where Tourism Finance of India'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, Tourism Finance of India's market capitalization (E) is ₹34700.144 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, Tourism Finance of India's latest one-year quarterly average Book Value of Debt (D) is ₹9902.606 Mil.
a) weight of equity = E / (E + D) = 34700.144 / (34700.144 + 9902.606) = 0.778
b) weight of debt = D / (E + D) = 9902.606 / (34700.144 + 9902.606) = 0.222
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. Tourism Finance of India's beta is 0.8523.
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% + 0.8523 * 6% = 12.1338%
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, Tourism Finance of India's interest expense (positive number) was ₹-0 Mil. Its total Book Value of Debt (D) is ₹9902.606 Mil.
Cost of Debt = -0 / 9902.606 = 0%.
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 = 323.178 / 1557.811 = 20.75%.
* 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.
Tourism Finance of India (BOM:526650) has a WACC % of 9.44% 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 Tourism Finance of India and its competitors. This is 56% above median its historical median of 6.04. Over the past decade, Tourism Finance of India's WACC % has ranged from 2.39 to 9.56. According to the industry distribution chart, Tourism Finance of India ranks #372 out of 553 companies in the Credit Services industry, placing it in the top 67.3%.
Is Tourism Finance of India's WACC % too high?
Tourism Finance of India's current WACC % of 9.44% is 56% above median its 10-year median of 6.04. Over the past 10 years, this metric has ranged from a low of 2.39 to a high of 9.56. The Credit Services industry median WACC % is 7.18. Tourism Finance of India's value of 9.44% is 31.5% above this industry median. Based on the distribution chart, Tourism Finance of India ranks #372 out of 553 companies in the Credit Services industry, which is below the industry midpoint. Overall, Tourism Finance of India has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tourism Finance of India's WACC % compare to V and MA?
According to the Credit Services industry distribution chart, Tourism Finance of India ranks #372 out of 553 companies for WACC %. This places Tourism Finance of India in the lower half of its industry. The industry median WACC % is 7.18. Tourism Finance of India's value of 9.44% is 31.5% above this benchmark. Historically, Tourism Finance of India's own WACC % has ranged from 2.39 to 9.56 over the past decade. While the company's 10-year median is 6.04 vs. the industry median of 7.18, Tourism Finance of India 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 Credit Services company?
The median WACC % among Credit Services companies is 7.18, based on 553 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. Tourism Finance of India's current WACC % of 9.44% is 31.5% 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 Tourism Finance of India and its competitors. For the Credit Services industry, the median WACC % is 7.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tourism Finance of India's current WACC % is 9.44%, which is 56% above median its own 10-year median of 6.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tourism Finance of India stock overvalued right now?
Based on GuruFocus' analysis, Tourism Finance of India (BOM:526650) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹39.81, compared to a current price of ₹74.95 — trading 88.3% above its estimated fair value. The current WACC % is 9.44%, which is 56% above median its 10-year median of 6.04 and 31.5% above the Credit Services industry median of 7.18. Tourism Finance of India's overall GF Score™ is 51/100 with 11 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 Tourism Finance of India (BOM:526650), the current WACC % is 9.44% 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.
Is Tourism Finance of India (BOM:526650) Overvalued in 2026?
Based on GuruFocus' analysis, Tourism Finance of India stock appears to be overvalued.
The current stock price of ₹74.95 is trading 88.3% above its estimated GF Value™ of ₹39.81.
GuruFocus considers Tourism Finance of India to be Significantly Overvalued.
Key valuation signals for BOM:526650:
WACC %: 9.44% (56% above median its 10-year median of 6.04)
GF Value™: ₹39.81 vs. price of ₹74.95 (88.3% above fair value)
Industry Position: 31.5% above the Credit Services median (#372 of 553)
No single metric tells the full story. See the BOM:526650 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tourism Finance Corp of India Ltd is engaged in the provision of financial services. It provides financial assistance by way of rupee term loans, subscriptions to equity/debentures, and corporate loans mainly to hotel projects, amusement parks, ropeways, multiplexes, restaurants, and others. The company products and services include tourism project financing, other financings, and tourism advisory services. Its only operating segment being Financing and Investment Activities. Geographically, the company generates majority of revenue from India.
51GF Score
Get the complete analysis for BOM:526650
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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