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As of today (2026-07-22), Elitecon International's weighted average cost of capital is -3.35%%. Elitecon International's ROIC % is 69.58% (calculated using TTM income statement data).
Elitecon International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Elitecon International (BOM:539533) 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, Elitecon International's weighted average cost of capital is -3.35%%. Elitecon International's ROIC % is 69.58% (calculated using TTM income statement data).
Elitecon International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
* 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 Tobacco subindustry, Elitecon International'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.
Elitecon International WACC % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Elitecon International's WACC % distribution charts can be found below:
* The bar in red indicates where Elitecon International'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, Elitecon International's market capitalization (E) is ₹28357.390 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, Elitecon International's latest one-year quarterly average Book Value of Debt (D) is ₹1646.0593 Mil.
a) weight of equity = E / (E + D) = 28357.390 / (28357.390 + 1646.0593) = 0.9451
b) weight of debt = D / (E + D) = 1646.0593 / (28357.390 + 1646.0593) = 0.0549
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. Elitecon International's beta is -1.8499.
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% + -1.8499 * 6% = -4.0794%
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, Elitecon International's interest expense (positive number) was ₹166.584 Mil. Its total Book Value of Debt (D) is ₹1646.0593 Mil.
Cost of Debt = 166.584 / 1646.0593 = 10.1202%.
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 = 217.865 / 2673.815 = 8.15%.
Elitecon International'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)
=
0.9451
*
-4.0794%
+
0.0549
*
10.1202%
*
(1 - 8.15%)
=
-3.35%
* 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.
Elitecon International (BOM:539533) has a WACC % of -3.35% as of Jul. 22, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Elitecon International and its competitors. According to the industry distribution chart, Elitecon International ranks #3 out of 51 companies in the Tobacco Products industry, placing it in the top 5.9%.
Is Elitecon International's WACC % too high?
Elitecon International's current WACC % is -3.35%. Based on the distribution chart, Elitecon International ranks #3 out of 51 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, Elitecon International has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Elitecon International's WACC % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Elitecon International ranks #3 out of 51 companies for WACC %. This places Elitecon International in the top 6% of its industry — outperforming the majority of peers. The industry median WACC % is 7.91. 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 Tobacco Products company?
The median WACC % among Tobacco Products companies is 7.91, based on 51 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. 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 Elitecon International and its competitors. For the Tobacco Products industry, the median WACC % is 7.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elitecon International's current WACC % is -3.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elitecon International stock overvalued right now?
Based on GuruFocus' analysis, Elitecon International (BOM:539533) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹2.13, compared to a current price of ₹17.74 — trading 732.9% above its estimated fair value. The current WACC % is -3.35%. Elitecon International's overall GF Score™ is 59/100 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 Elitecon International (BOM:539533), the current WACC % is -3.35% as of Jul. 22, 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 Elitecon International (BOM:539533) Overvalued in 2026?
Based on GuruFocus' analysis, Elitecon International stock appears to be overvalued.
The current stock price of ₹17.74 is trading 732.9% above its estimated GF Value™ of ₹2.13.
GuruFocus considers Elitecon International to be Significantly Overvalued.
Key valuation signals for BOM:539533:
WACC %: -3.35%
GF Value™: ₹2.13 vs. price of ₹17.74 (732.9% above fair value)
No single metric tells the full story. See the BOM:539533 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elitecon International Ltd operates in the manufacturing and trading of tobacco products including cigarettes, smoking mixtures, and sheesha. The company serves both domestic and international markets, with notable exports to regions such as the Middle East, Asia, and Europe. Elitecon has expanded its portfolio to include fast-moving consumer goods (FMCG), with upcoming plans to introduce products like snacks, edible oils, and other essentials. Its revenue is generated majorly through the sale of tobacco-based products and FMCG items, supported by a manufacturing infrastructure focused on innovation and sustainability. The company has two reportable segments, "tobacco and allied products" and "Agro Commodities".
59GF Score
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