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As of today (2026-07-18), Sree Rayalaseema Hi-Strength Hypo's weighted average cost of capital is 15.81%%. Sree Rayalaseema Hi-Strength Hypo's ROIC % is 8.71% (calculated using TTM income statement data).
Sree Rayalaseema Hi-Strength Hypo 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.
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, Sree Rayalaseema Hi-Strength Hypo's weighted average cost of capital is 15.81%%. Sree Rayalaseema Hi-Strength Hypo's ROIC % is 8.71% (calculated using TTM income statement data).
Sree Rayalaseema Hi-Strength Hypo 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
Sree Rayalaseema Hi-Strength Hypo 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 Chemicals subindustry, Sree Rayalaseema Hi-Strength Hypo'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.
Sree Rayalaseema Hi-Strength Hypo WACC % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sree Rayalaseema Hi-Strength Hypo's WACC % distribution charts can be found below:
* The bar in red indicates where Sree Rayalaseema Hi-Strength Hypo'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, Sree Rayalaseema Hi-Strength Hypo's market capitalization (E) is ₹8359.268 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, Sree Rayalaseema Hi-Strength Hypo's latest one-year quarterly average Book Value of Debt (D) is ₹138.427 Mil.
a) weight of equity = E / (E + D) = 8359.268 / (8359.268 + 138.427) = 0.9837
b) weight of debt = D / (E + D) = 138.427 / (8359.268 + 138.427) = 0.0163
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. Sree Rayalaseema Hi-Strength Hypo's beta is 1.4841.
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% + 1.4841 * 6% = 15.9246%
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, Sree Rayalaseema Hi-Strength Hypo's interest expense (positive number) was ₹16.779 Mil. Its total Book Value of Debt (D) is ₹138.427 Mil.
Cost of Debt = 16.779 / 138.427 = 12.1212%.
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 = 312.856 / 1208.421 = 25.89%.
* 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.
Sree Rayalaseema Hi-Strength Hypo (BOM:532842) has a WACC % of 15.81% as of Jul. 18, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sree Rayalaseema Hi-Strength Hypo and its competitors. This is near median its historical median of 16.40. Over the past decade, Sree Rayalaseema Hi-Strength Hypo's WACC % has ranged from 8.49 to 18.99. According to the industry distribution chart, Sree Rayalaseema Hi-Strength Hypo ranks #1526 out of 1630 companies in the Chemicals industry, placing it in the top 93.6%.
Is Sree Rayalaseema Hi-Strength Hypo's WACC % too high?
Sree Rayalaseema Hi-Strength Hypo's current WACC % of 15.81% is near median its 10-year median of 16.40. Over the past 10 years, this metric has ranged from a low of 8.49 to a high of 18.99. The Chemicals industry median WACC % is 9.19. Sree Rayalaseema Hi-Strength Hypo's value of 15.81% is 72.1% above this industry median. Based on the distribution chart, Sree Rayalaseema Hi-Strength Hypo ranks #1526 out of 1630 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Sree Rayalaseema Hi-Strength Hypo has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sree Rayalaseema Hi-Strength Hypo's WACC % compare to DOW?
According to the Chemicals industry distribution chart, Sree Rayalaseema Hi-Strength Hypo ranks #1526 out of 1630 companies for WACC %. This places Sree Rayalaseema Hi-Strength Hypo in the lower half of its industry. The industry median WACC % is 9.19. Sree Rayalaseema Hi-Strength Hypo's value of 15.81% is 72.1% above this benchmark. Historically, Sree Rayalaseema Hi-Strength Hypo's own WACC % has ranged from 8.49 to 18.99 over the past decade. While the company's 10-year median is 16.40 vs. the industry median of 9.19, Sree Rayalaseema Hi-Strength Hypo 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 9.19, based on 1,630 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. Sree Rayalaseema Hi-Strength Hypo's current WACC % of 15.81% is 72.1% 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 Sree Rayalaseema Hi-Strength Hypo and its competitors. For the Chemicals industry, the median WACC % is 9.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sree Rayalaseema Hi-Strength Hypo's current WACC % is 15.81%, which is near median its own 10-year median of 16.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sree Rayalaseema Hi-Strength Hypo stock overvalued right now?
Based on GuruFocus' analysis, Sree Rayalaseema Hi-Strength Hypo (BOM:532842) is currently considered Fairly Valued. The stock's GF Value™ is ₹464.54, compared to a current price of ₹487.00 — trading 4.8% above its estimated fair value. The current WACC % is 15.81%, which is near median its 10-year median of 16.40 and 72.1% above the Chemicals industry median of 9.19. Sree Rayalaseema Hi-Strength Hypo's overall GF Score™ is 69/100 with 2 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 Sree Rayalaseema Hi-Strength Hypo (BOM:532842), the current WACC % is 15.81% as of Jul. 18, 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 Sree Rayalaseema Hi-Strength Hypo (BOM:532842) Overvalued in 2026?
Based on GuruFocus' analysis, Sree Rayalaseema Hi-Strength Hypo stock appears to be overvalued.
The current stock price of ₹487.00 is trading 4.8% above its estimated GF Value™ of ₹464.54.
GuruFocus considers Sree Rayalaseema Hi-Strength Hypo to be Fairly Valued.
Key valuation signals for BOM:532842:
WACC %: 15.81% (near median its 10-year median of 16.40)
GF Value™: ₹464.54 vs. price of ₹487.00 (4.8% above fair value)
Industry Position: 72.1% above the Chemicals median (#1526 of 1630)
No single metric tells the full story. See the BOM:532842 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sree Rayalaseema Hi-Strength Hypo Business Description
Sree Rayalaseema Hi-Strength Hypo Ltd is an India-based company engaged in manufacturing inorganic chemicals and generating power through wind and thermal. The company has three reportable segments: Chemical manufacturing and Power Generation, and Trading in Coal, of which Chemical manufacturing segment. The company's products include Sulphuric acid, Chlorosulphonic acid, Chloramine, oleum, Hydrochloric acid, Monochloro acetic acid, Sodium dichloro isocyanurate, Hydrogen gas, Aluminium sulfate, Stable bleaching powder, Sodium hydride, Sodium methoxide powder, Sodium methoxide solution, and Water treatment chemicals.
69GF Score
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