Oceanic Foods (BOM:540405) WACC %:12.37% (As of Jul. 22, 2026) — 17% Above Median

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Director of Data and Quant Analytics at GuruFocus
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BOM:540405 Oceanic Foods Ltd BOM:540405
82 GF Score
Price ₹54.87
GF Value ₹64.24
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Oceanic Foods WACC %?

Oceanic Foods BOM:540405 +0.04% 82 WACC % is 12.37% as of Jul. 22, 2026, which is 17% above its 10-year median of 10.59. GuruFocus rates BOM:540405 with a GF Score™ of 82/100 and a GF Value™ of ₹64.24 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,039 Consumer Packaged Goods companies, Oceanic Foods ranks worse than 87.98% on this metric.

As of today (2026-07-22), Oceanic Foods's weighted average cost of capital is 12.37%%. Oceanic Foods's ROIC % is 11.40% (calculated using TTM income statement data). Oceanic Foods 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.


Oceanic Foods  (BOM:540405) 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, Oceanic Foods's weighted average cost of capital is 12.37%%. Oceanic Foods's ROIC % is 11.40% (calculated using TTM income statement data). Oceanic Foods 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

Oceanic Foods WACC % Historical Data

* Premium members only.

The historical data trend for Oceanic Foods'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.

Oceanic Foods WACC % Chart

Oceanic Foods Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
WACC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.00 9.68 9.55 8.60 10.64

Oceanic Foods Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.60 0.00 10.00 0.00 10.64

BOM:540405 vs KHC, GIS: WACC % Comparison

For the Packaged Foods subindustry, Oceanic Foods'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.


Oceanic Foods WACC % vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Oceanic Foods's WACC % distribution charts can be found below:

* The bar in red indicates where Oceanic Foods's WACC % falls into.


BOM:540405
82GF Score
Oceanic Foods Ltd BOM:540405
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Oceanic Foods WACC % Calculation

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, Oceanic Foods's market capitalization (E) is ₹617.288 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, Oceanic Foods's latest one-year quarterly average Book Value of Debt (D) is ₹374.278 Mil.
a) weight of equity = E / (E + D) = 617.288 / (617.288 + 374.278) = 0.6225
b) weight of debt = D / (E + D) = 374.278 / (617.288 + 374.278) = 0.3775

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. Oceanic Foods's beta is 1.4426.
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% + 1.4426 * 6% = 15.6756%

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, Oceanic Foods's interest expense (positive number) was ₹34.548 Mil. Its total Book Value of Debt (D) is ₹374.278 Mil.
Cost of Debt = 34.548 / 374.278 = 9.2306%.

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 = 22.854 / 90.77 = 25.18%.

Oceanic Foods'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)
=0.6225*15.6756%+0.3775*9.2306%*(1 - 25.18%)
=12.37%

* 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.

Frequently Asked Questions Learn more about WACC % →
What does a WACC % of 12.37% mean?
Oceanic Foods (BOM:540405) has a WACC % of 12.37% 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 Oceanic Foods and its competitors. This is 17% above median its historical median of 10.59. Over the past decade, Oceanic Foods' WACC % has ranged from 8.60 to 12.55. According to the industry distribution chart, Oceanic Foods ranks #1794 out of 2039 companies in the Consumer Packaged Goods industry, placing it in the top 88%.
Is Oceanic Foods' WACC % too high?
Oceanic Foods' current WACC % of 12.37% is 17% above median its 10-year median of 10.59. Over the past 10 years, this metric has ranged from a low of 8.60 to a high of 12.55. The Consumer Packaged Goods industry median WACC % is 7.63. Oceanic Foods' value of 12.37% is 62.1% above this industry median. Based on the distribution chart, Oceanic Foods ranks #1794 out of 2039 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Oceanic Foods has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Oceanic Foods' WACC % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Oceanic Foods ranks #1794 out of 2039 companies for WACC %. This places Oceanic Foods in the lower half of its industry. The industry median WACC % is 7.63. Oceanic Foods' value of 12.37% is 62.1% above this benchmark. Historically, Oceanic Foods' own WACC % has ranged from 8.60 to 12.55 over the past decade. While the company's 10-year median is 10.59 vs. the industry median of 7.63, Oceanic Foods 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 Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.63, based on 2,039 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. Oceanic Foods's current WACC % of 12.37% is 62.1% 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 Oceanic Foods and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oceanic Foods's current WACC % is 12.37%, which is 17% above median its own 10-year median of 10.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oceanic Foods stock overvalued right now?
Based on GuruFocus' analysis, Oceanic Foods (BOM:540405) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹64.24, compared to a current price of ₹54.87 — trading 14.6% below its estimated fair value. The current WACC % is 12.37%, which is 17% above median its 10-year median of 10.59 and 62.1% above the Consumer Packaged Goods industry median of 7.63. Oceanic Foods' overall GF Score™ is 82/100 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 Oceanic Foods (BOM:540405), the current WACC % is 12.37% 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 Oceanic Foods (BOM:540405) Overvalued in 2026?

Based on GuruFocus' analysis, Oceanic Foods stock appears to be undervalued. The current stock price of ₹54.87 is trading 14.6% below its estimated GF Value™ of ₹64.24. GuruFocus considers Oceanic Foods to be Modestly Undervalued.

Key valuation signals for BOM:540405:

  • WACC %: 12.37% (17% above median its 10-year median of 10.59)
  • GF Value™: ₹64.24 vs. price of ₹54.87 (14.6% below fair value)
  • GF Score™: 82/100 with 3 warning signs
  • Industry Position: 62.1% above the Consumer Packaged Goods median (#1794 of 2039)

No single metric tells the full story. See the BOM:540405 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Oceanic Foods Business Description

Address Pandit Nehru Marg, Opposite Brooke Bond Factory, Jamnagar, GJ, IND, 361002
Oceanic Foods Ltd is a manufacturer and exporter of dehydrated spices and vegetables. The company's products include dehydrated onion, dehydrated garlic, dehydrated vegetables, and others in various forms like flakes, minced, powder, and others.
82GF Score

Get the complete analysis for BOM:540405

WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹54.87
Price
₹64.24
GF Value