Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Palco MetalsBOM:539121 +0.50%81 WACC % is 13.73% as of Jul. 19, 2026, which is 91% above its 10-year median of 7.17. GuruFocus rates BOM:539121 with a GF Score™ of 81/100 and a GF Value™ of ₹175.32 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,669 Metals & Mining companies, Palco Metals ranks worse than 74.9% on this metric.
As of today (2026-07-19), Palco Metals's weighted average cost of capital is 13.73%%. Palco Metals's ROIC % is 11.38% (calculated using TTM income statement data).
Palco Metals 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.
Palco Metals (BOM:539121) 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, Palco Metals's weighted average cost of capital is 13.73%%. Palco Metals's ROIC % is 11.38% (calculated using TTM income statement data).
Palco Metals 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
Palco Metals WACC % Historical Data
* Premium members only.
The historical data trend for Palco Metals'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 Aluminum subindustry, Palco Metals'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.
Palco Metals WACC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Palco Metals's WACC % distribution charts can be found below:
* The bar in red indicates where Palco Metals'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, Palco Metals's market capitalization (E) is ₹567.200 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, Palco Metals's latest one-year quarterly average Book Value of Debt (D) is ₹336.8237 Mil.
a) weight of equity = E / (E + D) = 567.200 / (567.200 + 336.8237) = 0.6274
b) weight of debt = D / (E + D) = 336.8237 / (567.200 + 336.8237) = 0.3726
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. Palco Metals's beta is 1.7498.
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% + 1.7498 * 6% = 17.5188%
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, Palco Metals's interest expense (positive number) was ₹33.766 Mil. Its total Book Value of Debt (D) is ₹336.8237 Mil.
Cost of Debt = 33.766 / 336.8237 = 10.0248%.
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 = 23.236 / 87.077 = 26.68%.
Palco Metals'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)
=
0.6274
*
17.5188%
+
0.3726
*
10.0248%
*
(1 - 26.68%)
=
13.73%
* 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.
Palco Metals (BOM:539121) has a WACC % of 13.73% as of Jul. 19, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Palco Metals and its competitors. This is 91% above median its historical median of 7.17. Over the past decade, Palco Metals' WACC % has ranged from 4.34 to 13.73. According to the industry distribution chart, Palco Metals ranks #1999 out of 2669 companies in the Metals & Mining industry, placing it in the top 74.9%.
Is Palco Metals' WACC % too high?
Palco Metals' current WACC % of 13.73% is 91% above median its 10-year median of 7.17. Over the past 10 years, this metric has ranged from a low of 4.34 to a high of 13.73. The Metals & Mining industry median WACC % is 9.62. Palco Metals' value of 13.73% is 42.7% above this industry median. Based on the distribution chart, Palco Metals ranks #1999 out of 2669 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, Palco Metals has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Palco Metals' WACC % compare to AA?
According to the Metals & Mining industry distribution chart, Palco Metals ranks #1999 out of 2669 companies for WACC %. This places Palco Metals in the lower half of its industry. The industry median WACC % is 9.62. Palco Metals' value of 13.73% is 42.7% above this benchmark. Historically, Palco Metals' own WACC % has ranged from 4.34 to 13.73 over the past decade. While the company's 10-year median is 7.17 vs. the industry median of 9.62, Palco Metals 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 Metals & Mining company?
The median WACC % among Metals & Mining companies is 9.62, based on 2,669 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. Palco Metals's current WACC % of 13.73% is 42.7% 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 Palco Metals and its competitors. For the Metals & Mining industry, the median WACC % is 9.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palco Metals's current WACC % is 13.73%, which is 91% above median its own 10-year median of 7.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palco Metals stock overvalued right now?
Based on GuruFocus' analysis, Palco Metals (BOM:539121) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹175.32, compared to a current price of ₹141.80 — trading 19.1% below its estimated fair value. The current WACC % is 13.73%, which is 91% above median its 10-year median of 7.17 and 42.7% above the Metals & Mining industry median of 9.62. Palco Metals' overall GF Score™ is 81/100 with 3 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 Palco Metals (BOM:539121), the current WACC % is 13.73% as of Jul. 19, 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 Palco Metals (BOM:539121) Overvalued in 2026?
Based on GuruFocus' analysis, Palco Metals stock appears to be undervalued.
The current stock price of ₹141.80 is trading 19.1% below its estimated GF Value™ of ₹175.32.
GuruFocus considers Palco Metals to be Modestly Undervalued.
Key valuation signals for BOM:539121:
WACC %: 13.73% (91% above median its 10-year median of 7.17)
GF Value™: ₹175.32 vs. price of ₹141.80 (19.1% below fair value)
Industry Position: 42.7% above the Metals & Mining median (#1999 of 2669)
No single metric tells the full story. See the BOM:539121 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palco Metals Ltd is an India-based company. The company its subsidiary are incorporated to carry on the business of manufacturing and selling of Aluminum Wire rod & other Aluminum Dioxident like Aluminum Ingot, Aluminum Notchbar , Aluminum Shots, Aluminum Alloys. It has integrated facility to manufacture wire rods of various grades, Deoxident in the form of Aluminium substance, notchbar and cables & has laboratory to test all types of wire rod and cables. The company operates in single segment of manufacturing and trading of non-ferrous metals and all other activities.
81GF Score
Get the complete analysis for BOM:539121
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:539121 has been successfully added to your 
