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Godrej PropertiesBOM:533150 +1.28%83 WACC % is 14.87% as of Jul. 14, 2026, which is 5% above its 10-year median of 14.14. GuruFocus rates BOM:533150 with a GF Score™ of 83/100 and a GF Value™ of ₹3,460.70 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,844 Real Estate companies, Godrej Properties ranks worse than 94.2% on this metric.
As of today (2026-07-14), Godrej Properties's weighted average cost of capital is 14.87%%. Godrej Properties's ROIC % is -0.70% (calculated using TTM income statement data).
Godrej Properties 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.
Godrej Properties (BOM:533150) 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, Godrej Properties's weighted average cost of capital is 14.87%%. Godrej Properties's ROIC % is -0.70% (calculated using TTM income statement data).
Godrej Properties 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
Godrej Properties WACC % Historical Data
* Premium members only.
The historical data trend for Godrej Properties'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 Real Estate - Development subindustry, Godrej Properties'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.
Godrej Properties WACC % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Godrej Properties's WACC % distribution charts can be found below:
* The bar in red indicates where Godrej Properties'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, Godrej Properties's market capitalization (E) is ₹651431.265 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, Godrej Properties's latest one-year quarterly average Book Value of Debt (D) is ₹149533 Mil.
a) weight of equity = E / (E + D) = 651431.265 / (651431.265 + 149533) = 0.8133
b) weight of debt = D / (E + D) = 149533 / (651431.265 + 149533) = 0.1867
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. Godrej Properties's beta is 1.8513.
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% + 1.8513 * 6% = 18.1278%
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, Godrej Properties's interest expense (positive number) was ₹1368.6 Mil. Its total Book Value of Debt (D) is ₹149533 Mil.
Cost of Debt = 1368.6 / 149533 = 0.9152%.
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 = 7099.1 / 25506.1 = 27.83%.
Godrej Properties'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)
=
0.8133
*
18.1278%
+
0.1867
*
0.9152%
*
(1 - 27.83%)
=
14.87%
* 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.
Godrej Properties (BOM:533150) has a WACC % of 14.87% 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 Godrej Properties and its competitors. This is near median its historical median of 14.14. Over the past decade, Godrej Properties' WACC % has ranged from 9.89 to 16.59. According to the industry distribution chart, Godrej Properties ranks #1737 out of 1844 companies in the Real Estate industry, placing it in the top 94.2%.
Is Godrej Properties' WACC % too high?
Godrej Properties' current WACC % of 14.87% is near median its 10-year median of 14.14. Over the past 10 years, this metric has ranged from a low of 9.89 to a high of 16.59. The Real Estate industry median WACC % is 6.50. Godrej Properties' value of 14.87% is 128.8% above this industry median. Based on the distribution chart, Godrej Properties ranks #1737 out of 1844 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, Godrej Properties has a GF Score™ of 83/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Godrej Properties' WACC % compare to competitors?
According to the Real Estate industry distribution chart, Godrej Properties ranks #1737 out of 1844 companies for WACC %. This places Godrej Properties in the lower half of its industry. The industry median WACC % is 6.50. Godrej Properties' value of 14.87% is 128.8% above this benchmark. Historically, Godrej Properties' own WACC % has ranged from 9.89 to 16.59 over the past decade. While the company's 10-year median is 14.14 vs. the industry median of 6.50, Godrej Properties 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 Real Estate company?
The median WACC % among Real Estate companies is 6.50, based on 1,844 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. Godrej Properties's current WACC % of 14.87% is 128.8% 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 Godrej Properties and its competitors. For the Real Estate industry, the median WACC % is 6.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Godrej Properties's current WACC % is 14.87%, which is near median its own 10-year median of 14.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Godrej Properties stock overvalued right now?
Based on GuruFocus' analysis, Godrej Properties (BOM:533150) is currently considered Possible Value Trap. The stock's GF Value™ is ₹3,460.70, compared to a current price of ₹2,160.85 — trading 37.6% below its estimated fair value. The current WACC % is 14.87%, which is near median its 10-year median of 14.14 and 128.8% above the Real Estate industry median of 6.50. Godrej Properties' overall GF Score™ is 83/100 with 7 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 Godrej Properties (BOM:533150), the current WACC % is 14.87% 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 Godrej Properties (BOM:533150) Overvalued in 2026?
Based on GuruFocus' analysis, Godrej Properties stock appears to be undervalued.
The current stock price of ₹2,160.85 is trading 37.6% below its estimated GF Value™ of ₹3,460.70.
GuruFocus considers Godrej Properties to be Possible Value Trap.
Key valuation signals for BOM:533150:
WACC %: 14.87% (near median its 10-year median of 14.14)
GF Value™: ₹3,460.70 vs. price of ₹2,160.85 (37.6% below fair value)
Industry Position: 128.8% above the Real Estate median (#1737 of 1844)
No single metric tells the full story. See the BOM:533150 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Godrej Properties Ltd develops residential, commercial, and township properties in multiple cities. The company derives a majority of its revenue from the sale of properties. Other operating sources of revenue include the sale of services, compensation received from projects, and lease rents. The company's operations occur in two main business areas Residential Real Estate and Commercial Real Estate. The company takes on projects in each of these segments. Some of the company's Residential Real Estate projects include Godrej Garden City, Godrej Prakriti, and Godrej Palm Grove. The company's key Commercial Real Estate projects include Godrej BKC and Godrej Eternia. The company generates a majority of its revenue from India.
83GF Score
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