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Surana SolarBOM:533298 -0.34%49 WACC % is 20.06% as of Jul. 20, 2026, which is 74% above its 10-year median of 11.52. GuruFocus rates BOM:533298 with a GF Score™ of 49/100 and a GF Value™ of ₹11.13 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,032 Semiconductors companies, Surana Solar ranks worse than 95.45% on this metric.
As of today (2026-07-20), Surana Solar's weighted average cost of capital is 20.06%%. Surana Solar's ROIC % is -5.17% (calculated using TTM income statement data).
Surana Solar 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.
Surana Solar (BOM:533298) 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, Surana Solar's weighted average cost of capital is 20.06%%. Surana Solar's ROIC % is -5.17% (calculated using TTM income statement data).
Surana Solar 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
Surana Solar WACC % Historical Data
* Premium members only.
The historical data trend for Surana Solar'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 Solar subindustry, Surana Solar'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.
Surana Solar WACC % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Surana Solar's WACC % distribution charts can be found below:
* The bar in red indicates where Surana Solar'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, Surana Solar's market capitalization (E) is ₹1286.753 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 Sep. 2025, Surana Solar's latest one-year quarterly average Book Value of Debt (D) is ₹18.6925 Mil.
a) weight of equity = E / (E + D) = 1286.753 / (1286.753 + 18.6925) = 0.9857
b) weight of debt = D / (E + D) = 18.6925 / (1286.753 + 18.6925) = 0.0143
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. Surana Solar's beta is 2.2212.
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% + 2.2212 * 6% = 20.3472%
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 Sep. 2025, Surana Solar's interest expense (positive number) was ₹0.032 Mil. Its total Book Value of Debt (D) is ₹18.6925 Mil.
Cost of Debt = 0.032 / 18.6925 = 0.1712%.
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 = 0.566 / 0.658 = 86.02%.
Surana Solar'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)
=
0.9857
*
20.3472%
+
0.0143
*
0.1712%
*
(1 - 86.02%)
=
20.06%
* 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.
Surana Solar (BOM:533298) has a WACC % of 20.06% 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 Surana Solar and its competitors. This is 74% above median its historical median of 11.52. Over the past decade, Surana Solar's WACC % has ranged from 9.14 to 20.06. According to the industry distribution chart, Surana Solar ranks #985 out of 1032 companies in the Semiconductors industry, placing it in the top 95.4%.
Is Surana Solar's WACC % too high?
Surana Solar's current WACC % of 20.06% is 74% above median its 10-year median of 11.52. Over the past 10 years, this metric has ranged from a low of 9.14 to a high of 20.06. The Semiconductors industry median WACC % is 9.29. Surana Solar's value of 20.06% is 115.9% above this industry median. Based on the distribution chart, Surana Solar ranks #985 out of 1032 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Surana Solar has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Surana Solar's WACC % compare to FSLR and NXT?
According to the Semiconductors industry distribution chart, Surana Solar ranks #985 out of 1032 companies for WACC %. This places Surana Solar in the lower half of its industry. The industry median WACC % is 9.29. Surana Solar's value of 20.06% is 115.9% above this benchmark. Historically, Surana Solar's own WACC % has ranged from 9.14 to 20.06 over the past decade. While the company's 10-year median is 11.52 vs. the industry median of 9.29, Surana Solar 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 Semiconductors company?
The median WACC % among Semiconductors companies is 9.29, based on 1,032 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. Surana Solar's current WACC % of 20.06% is 115.9% 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 Surana Solar and its competitors. For the Semiconductors industry, the median WACC % is 9.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Surana Solar's current WACC % is 20.06%, which is 74% above median its own 10-year median of 11.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Surana Solar stock overvalued right now?
Based on GuruFocus' analysis, Surana Solar (BOM:533298) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹11.13, compared to a current price of ₹26.15 — trading 135% above its estimated fair value. The current WACC % is 20.06%, which is 74% above median its 10-year median of 11.52 and 115.9% above the Semiconductors industry median of 9.29. Surana Solar's overall GF Score™ is 49/100 with 4 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 Surana Solar (BOM:533298), the current WACC % is 20.06% 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.
Is Surana Solar (BOM:533298) Overvalued in 2026?
Based on GuruFocus' analysis, Surana Solar stock appears to be overvalued.
The current stock price of ₹26.15 is trading 135% above its estimated GF Value™ of ₹11.13.
GuruFocus considers Surana Solar to be Significantly Overvalued.
Key valuation signals for BOM:533298:
WACC %: 20.06% (74% above median its 10-year median of 11.52)
GF Value™: ₹11.13 vs. price of ₹26.15 (135% above fair value)
Industry Position: 115.9% above the Semiconductors median (#985 of 1032)
No single metric tells the full story. See the BOM:533298 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Surana Solar Ltd is engaged in the business of manufacturing solar panels/photovoltaic (PV) cells. The company is also engaged in the generation of wind power energy and the trading of other solar-related products. It operates through the following reportable segments: Solar Products, Trading and others, and Renewable Energy (Solar). The majority of the company's revenue is derived from the Solar and Traded products business, which involves the manufacturing and trading of Solar Photovoltaic (SPV) Modules and other related products. The Renewable Energy segment represents revenue derived from the generation of solar and wind power.
49GF Score
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