Bharat Road NetworkBOM:540700 -3.54%51 WACC % is 2.55% as of Jul. 09, 2026, which is 77% below its 10-year median of 11.05. GuruFocus rates BOM:540700 with a GF Score™ of 51/100 and a GF Value™ of ₹16.51 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,807 Construction companies, Bharat Road Network ranks better than 91.09% on this metric.
As of today (2026-07-09), Bharat Road Network's weighted average cost of capital is 2.55%%. Bharat Road Network's ROIC % is -7.20% (calculated using TTM income statement data).
Bharat Road Network 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.
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, Bharat Road Network's weighted average cost of capital is 2.55%%. Bharat Road Network's ROIC % is -7.20% (calculated using TTM income statement data).
Bharat Road Network 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
Bharat Road Network WACC % Historical Data
* Premium members only.
The historical data trend for Bharat Road Network'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 Infrastructure Operations subindustry, Bharat Road Network'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.
Bharat Road Network WACC % vs Construction Industry
For the Construction industry and Industrials sector, Bharat Road Network's WACC % distribution charts can be found below:
* The bar in red indicates where Bharat Road Network'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, Bharat Road Network's market capitalization (E) is ₹1509.421 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, Bharat Road Network's latest one-year quarterly average Book Value of Debt (D) is ₹4343.087 Mil.
a) weight of equity = E / (E + D) = 1509.421 / (1509.421 + 4343.087) = 0.2579
b) weight of debt = D / (E + D) = 4343.087 / (1509.421 + 4343.087) = 0.7421
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. Bharat Road Network's beta is 0.4723.
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% + 0.4723 * 6% = 9.8538%
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, Bharat Road Network's interest expense (positive number) was ₹0.233 Mil. Its total Book Value of Debt (D) is ₹4343.087 Mil.
Cost of Debt = 0.233 / 4343.087 = 0.0054%.
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 = 3.3 / -591.292 = -0.56%, which is less than 0%. Therefore it's set to 0%.
Bharat Road Network'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)
=
0.2579
*
9.8538%
+
0.7421
*
0.0054%
*
(1 - 0%)
=
2.55%
* 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.
Bharat Road Network (BOM:540700) has a WACC % of 2.55% as of Jul. 09, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Bharat Road Network and its competitors. This is 77% below median its historical median of 11.05. Over the past decade, Bharat Road Network's WACC % has ranged from 0.78 to 15.47. According to the industry distribution chart, Bharat Road Network ranks #161 out of 1807 companies in the Construction industry, placing it in the top 8.9%.
Is Bharat Road Network's WACC % too high?
Bharat Road Network's current WACC % of 2.55% is 77% below median its 10-year median of 11.05. Over the past 10 years, this metric has ranged from a low of 0.78 to a high of 15.47. The Construction industry median WACC % is 7.68. Bharat Road Network's value of 2.55% is 66.8% below this industry median. Based on the distribution chart, Bharat Road Network ranks #161 out of 1807 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Bharat Road Network has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Bharat Road Network's WACC % compare to competitors?
According to the Construction industry distribution chart, Bharat Road Network ranks #161 out of 1807 companies for WACC %. This places Bharat Road Network in the top 9% of its industry — outperforming the majority of peers. The industry median WACC % is 7.68. Bharat Road Network's value of 2.55% is 66.8% below this benchmark. Historically, Bharat Road Network's own WACC % has ranged from 0.78 to 15.47 over the past decade. While the company's 10-year median is 11.05 vs. the industry median of 7.68, Bharat Road Network 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 Construction company?
The median WACC % among Construction companies is 7.68, based on 1,807 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. Bharat Road Network's current WACC % of 2.55% is 66.8% 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 Bharat Road Network and its competitors. For the Construction industry, the median WACC % is 7.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bharat Road Network's current WACC % is 2.55%, which is 77% below median its own 10-year median of 11.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bharat Road Network stock overvalued right now?
Based on GuruFocus' analysis, Bharat Road Network (BOM:540700) is currently considered Fairly Valued. The stock's GF Value™ is ₹16.51, compared to a current price of ₹17.98 — trading 8.9% above its estimated fair value. The current WACC % is 2.55%, which is 77% below median its 10-year median of 11.05 and 66.8% below the Construction industry median of 7.68. Bharat Road Network's overall GF Score™ is 51/100 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 Bharat Road Network (BOM:540700), the current WACC % is 2.55% as of Jul. 09, 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 Bharat Road Network (BOM:540700) Overvalued in 2026?
Based on GuruFocus' analysis, Bharat Road Network stock appears to be overvalued.
The current stock price of ₹17.98 is trading 8.9% above its estimated GF Value™ of ₹16.51.
GuruFocus considers Bharat Road Network to be Fairly Valued.
Key valuation signals for BOM:540700:
WACC %: 2.55% (77% below median its 10-year median of 11.05)
GF Value™: ₹16.51 vs. price of ₹17.98 (8.9% above fair value)
Industry Position: 66.8% below the Construction median (#161 of 1807)
No single metric tells the full story. See the BOM:540700 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bharat Road Network Ltd is a road BOT company in India which is focused on the development, implementation, operation and maintenance of roads and highways projects. The company is a developer and operator of highways, roads and related projects on a BOT basis. The company is involved in the development, operation and maintenance of national and state highways in several states in India with experience of managing projects in the states of Uttar Pradesh, Kerala, Haryana, Madhya Pradesh, Maharashtra and Odisha through partnerships with experienced EPC players in the local space where the project is located.
51GF Score
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