SAR Auto ProductsBOM:538992 +4.69%62 WACC % is 5.74% as of Jul. 07, 2026, which is 13% below its 10-year median of 6.62. GuruFocus rates BOM:538992 with a GF Score™ of 62/100 and a GF Value™ of ₹1,351.82 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,343 Vehicles & Parts companies, SAR Auto Products ranks better than 68.73% on this metric.
As of today (2026-07-07), SAR Auto Products's weighted average cost of capital is 5.74%%. SAR Auto Products's ROIC % is -0.63% (calculated using TTM income statement data).
SAR Auto Products 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.
SAR Auto Products (BOM:538992) 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, SAR Auto Products's weighted average cost of capital is 5.74%%. SAR Auto Products's ROIC % is -0.63% (calculated using TTM income statement data).
SAR Auto Products 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
SAR Auto Products WACC % Historical Data
* Premium members only.
The historical data trend for SAR Auto Products'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 Auto Parts subindustry, SAR Auto Products'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.
SAR Auto Products WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, SAR Auto Products's WACC % distribution charts can be found below:
* The bar in red indicates where SAR Auto Products'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, SAR Auto Products's market capitalization (E) is ₹13562.356 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, SAR Auto Products's latest one-year quarterly average Book Value of Debt (D) is ₹211.1787 Mil.
a) weight of equity = E / (E + D) = 13562.356 / (13562.356 + 211.1787) = 0.9847
b) weight of debt = D / (E + D) = 211.1787 / (13562.356 + 211.1787) = 0.0153
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. SAR Auto Products's beta is -0.1997.
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% + -0.1997 * 6% = 5.8218%
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, SAR Auto Products's interest expense (positive number) was ₹1.12 Mil. Its total Book Value of Debt (D) is ₹211.1787 Mil.
Cost of Debt = 1.12 / 211.1787 = 0.5304%.
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 = 0.723 / 7.384 = 9.79%.
SAR Auto Products'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)
=
0.9847
*
5.8218%
+
0.0153
*
0.5304%
*
(1 - 9.79%)
=
5.74%
* 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.
SAR Auto Products (BOM:538992) has a WACC % of 5.74% as of Jul. 07, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on SAR Auto Products and its competitors. This is 13% below median its historical median of 6.62. Over the past decade, SAR Auto Products' WACC % has ranged from 1.14 to 12.94. According to the industry distribution chart, SAR Auto Products ranks #420 out of 1343 companies in the Vehicles & Parts industry, placing it in the top 31.3%.
Is SAR Auto Products' WACC % too high?
SAR Auto Products' current WACC % of 5.74% is 13% below median its 10-year median of 6.62. Over the past 10 years, this metric has ranged from a low of 1.14 to a high of 12.94. The Vehicles & Parts industry median WACC % is 8.57. SAR Auto Products' value of 5.74% is 33% below this industry median. Based on the distribution chart, SAR Auto Products ranks #420 out of 1343 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, SAR Auto Products has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SAR Auto Products' WACC % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, SAR Auto Products ranks #420 out of 1343 companies for WACC %. This puts SAR Auto Products in the upper half of its industry. The industry median WACC % is 8.57. SAR Auto Products' value of 5.74% is 33% below this benchmark. Historically, SAR Auto Products' own WACC % has ranged from 1.14 to 12.94 over the past decade. While the company's 10-year median is 6.62 vs. the industry median of 8.57, SAR Auto Products has consistently been below 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 Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.57, based on 1,343 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. SAR Auto Products's current WACC % of 5.74% is 33% below 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 SAR Auto Products and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SAR Auto Products's current WACC % is 5.74%, which is 13% below median its own 10-year median of 6.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SAR Auto Products stock overvalued right now?
Based on GuruFocus' analysis, SAR Auto Products (BOM:538992) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1,351.82, compared to a current price of ₹2,846.40 — trading 110.6% above its estimated fair value. The current WACC % is 5.74%, which is 13% below median its 10-year median of 6.62 and 33% below the Vehicles & Parts industry median of 8.57. SAR Auto Products' overall GF Score™ is 62/100 with 6 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 SAR Auto Products (BOM:538992), the current WACC % is 5.74% as of Jul. 07, 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 SAR Auto Products (BOM:538992) Overvalued in 2026?
Based on GuruFocus' analysis, SAR Auto Products stock appears to be overvalued.
The current stock price of ₹2,846.40 is trading 110.6% above its estimated GF Value™ of ₹1,351.82.
GuruFocus considers SAR Auto Products to be Significantly Overvalued.
Key valuation signals for BOM:538992:
WACC %: 5.74% (13% below median its 10-year median of 6.62)
GF Value™: ₹1,351.82 vs. price of ₹2,846.40 (110.6% above fair value)
Industry Position: 33% below the Vehicles & Parts median (#420 of 1343)
No single metric tells the full story. See the BOM:538992 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SAR Auto Products Ltd is carrying on the business of manufacturing auto components. The company manufactures auto components comprising of automobile gears like a spur, helical, straight bevel, sprockets along with transmission spline shafts, couplings, and power takeoff clutches which are used for transmission, engine, and differential gearboxes. It operates in the manufacturing segment. The company caters to both domestic and international markets. It derives maximum revenue from the domestic market.
62GF Score
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