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Sun RetailBOM:542025 46 WACC % is 9.06% as of Jul. 24, 2026, which is 19% below its 10-year median of 11.25. GuruFocus rates BOM:542025 with a GF Score™ of 46/100 and a GF Value™ of ₹0.15 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,038 Consumer Packaged Goods companies, Sun Retail ranks worse than 61.53% on this metric.
As of today (2026-07-24), Sun Retail's weighted average cost of capital is 9.06%%. Sun Retail's ROIC % is -11.37% (calculated using TTM income statement data).
Sun Retail 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.
Sun Retail (BOM:542025) 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, Sun Retail's weighted average cost of capital is 9.06%%. Sun Retail's ROIC % is -11.37% (calculated using TTM income statement data).
Sun Retail 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 semi-annual 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 semi-annual average debt to get the simplified cost of debt.
Related Terms
Sun Retail WACC % Historical Data
* Premium members only.
The historical data trend for Sun Retail'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 Packaged Foods subindustry, Sun Retail'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.
Sun Retail WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Sun Retail's WACC % distribution charts can be found below:
* The bar in red indicates where Sun Retail'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, Sun Retail's market capitalization (E) is ₹43.447 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 semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Sun Retail's latest one-year semi-annual average Book Value of Debt (D) is ₹47.9377 Mil.
a) weight of equity = E / (E + D) = 43.447 / (43.447 + 47.9377) = 0.4754
b) weight of debt = D / (E + D) = 47.9377 / (43.447 + 47.9377) = 0.5246
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. Sun Retail's beta is 2.0072.
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% + 2.0072 * 6% = 19.0632%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Mar. 2026, Sun Retail's interest expense (positive number) was ₹-0 Mil. Its total Book Value of Debt (D) is ₹47.9377 Mil.
Cost of Debt = -0 / 47.9377 = 0%.
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 = -0.035 / -1.588 = 2.2%.
Sun Retail'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)
=
0.4754
*
19.0632%
+
0.5246
*
0%
*
(1 - 2.2%)
=
9.06%
* 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.
Sun Retail (BOM:542025) has a WACC % of 9.06% as of Jul. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sun Retail and its competitors. This is 19% below median its historical median of 11.25. Over the past decade, Sun Retail's WACC % has ranged from 7.59 to 12.47. According to the industry distribution chart, Sun Retail ranks #1254 out of 2038 companies in the Consumer Packaged Goods industry, placing it in the top 61.5%.
Is Sun Retail's WACC % too high?
Sun Retail's current WACC % of 9.06% is 19% below median its 10-year median of 11.25. Over the past 10 years, this metric has ranged from a low of 7.59 to a high of 12.47. The Consumer Packaged Goods industry median WACC % is 7.64. Sun Retail's value of 9.06% is 18.7% above this industry median. Based on the distribution chart, Sun Retail ranks #1254 out of 2038 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. Overall, Sun Retail has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sun Retail's WACC % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Sun Retail ranks #1254 out of 2038 companies for WACC %. This places Sun Retail in the lower half of its industry. The industry median WACC % is 7.64. Sun Retail's value of 9.06% is 18.7% above this benchmark. Historically, Sun Retail's own WACC % has ranged from 7.59 to 12.47 over the past decade. While the company's 10-year median is 11.25 vs. the industry median of 7.64, Sun Retail 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 7.64, based on 2,038 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. Sun Retail's current WACC % of 9.06% is 18.7% 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 Sun Retail and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sun Retail's current WACC % is 9.06%, which is 19% below median its own 10-year median of 11.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sun Retail stock overvalued right now?
Based on GuruFocus' analysis, Sun Retail (BOM:542025) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹0.15, compared to a current price of ₹0.28 — trading 86.7% above its estimated fair value. The current WACC % is 9.06%, which is 19% below median its 10-year median of 11.25 and 18.7% above the Consumer Packaged Goods industry median of 7.64. Sun Retail's overall GF Score™ is 46/100 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 Sun Retail (BOM:542025), the current WACC % is 9.06% as of Jul. 24, 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 Sun Retail (BOM:542025) Overvalued in 2026?
Based on GuruFocus' analysis, Sun Retail stock appears to be overvalued.
The current stock price of ₹0.28 is trading 86.7% above its estimated GF Value™ of ₹0.15.
GuruFocus considers Sun Retail to be Significantly Overvalued.
Key valuation signals for BOM:542025:
WACC %: 9.06% (19% below median its 10-year median of 11.25)
GF Value™: ₹0.15 vs. price of ₹0.28 (86.7% above fair value)
Industry Position: 18.7% above the Consumer Packaged Goods median (#1254 of 2038)
No single metric tells the full story. See the BOM:542025 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sun Retail Ltd is an Indian firm engaged in the business of trading in refined/filtered edible oils. The main products of the company include cottonseed oil, groundnut oil, and sunflower oil. Further, the company also performs the activity of bulk trading of palm olein oil and soybean oil.
46GF Score
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