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Nivaka FashionsBOM:542206 -3.77%27 WACC % is 13.17% as of Jul. 23, 2026, which is 9% above its 10-year median of 12.03. GuruFocus rates BOM:542206 with a GF Score™ of 27/100 and a GF Value™ of ₹0.05 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,081 Manufacturing - Apparel & Accessories companies, Nivaka Fashions ranks worse than 88.53% on this metric.
As of today (2026-07-23), Nivaka Fashions's weighted average cost of capital is 13.17%%. Nivaka Fashions's ROIC % is -46.07% (calculated using TTM income statement data).
Nivaka Fashions 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.
Nivaka Fashions (BOM:542206) 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, Nivaka Fashions's weighted average cost of capital is 13.17%%. Nivaka Fashions's ROIC % is -46.07% (calculated using TTM income statement data).
Nivaka Fashions 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
Nivaka Fashions WACC % Historical Data
* Premium members only.
The historical data trend for Nivaka Fashions'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 Apparel Manufacturing subindustry, Nivaka Fashions'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.
Nivaka Fashions WACC % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nivaka Fashions's WACC % distribution charts can be found below:
* The bar in red indicates where Nivaka Fashions'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, Nivaka Fashions's market capitalization (E) is ₹52.372 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, Nivaka Fashions's latest one-year quarterly average Book Value of Debt (D) is ₹15.5347 Mil.
a) weight of equity = E / (E + D) = 52.372 / (52.372 + 15.5347) = 0.7712
b) weight of debt = D / (E + D) = 15.5347 / (52.372 + 15.5347) = 0.2288
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. Nivaka Fashions's beta is 1.0492.
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% + 1.0492 * 6% = 13.3152%
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, Nivaka Fashions's interest expense (positive number) was ₹1.976 Mil. Its total Book Value of Debt (D) is ₹15.5347 Mil.
Cost of Debt = 1.976 / 15.5347 = 12.7199%.
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 = -0.196 / -52.286 = 0.37%.
Nivaka Fashions'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)
=
0.7712
*
13.3152%
+
0.2288
*
12.7199%
*
(1 - 0.37%)
=
13.17%
* 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.
Nivaka Fashions (BOM:542206) has a WACC % of 13.17% as of Jul. 23, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Nivaka Fashions and its competitors. This is near median its historical median of 12.03. Over the past decade, Nivaka Fashions' WACC % has ranged from 2.20 to 13.92. According to the industry distribution chart, Nivaka Fashions ranks #957 out of 1081 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 88.5%.
Is Nivaka Fashions' WACC % too high?
Nivaka Fashions' current WACC % of 13.17% is near median its 10-year median of 12.03. Over the past 10 years, this metric has ranged from a low of 2.20 to a high of 13.92. The Manufacturing - Apparel & Accessories industry median WACC % is 8.48. Nivaka Fashions' value of 13.17% is 55.3% above this industry median. Based on the distribution chart, Nivaka Fashions ranks #957 out of 1081 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Nivaka Fashions has a GF Score™ of 27/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nivaka Fashions' WACC % compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Nivaka Fashions ranks #957 out of 1081 companies for WACC %. This places Nivaka Fashions in the lower half of its industry. The industry median WACC % is 8.48. Nivaka Fashions' value of 13.17% is 55.3% above this benchmark. Historically, Nivaka Fashions' own WACC % has ranged from 2.20 to 13.92 over the past decade. While the company's 10-year median is 12.03 vs. the industry median of 8.48, Nivaka Fashions 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 Manufacturing - Apparel & Accessories company?
The median WACC % among Manufacturing - Apparel & Accessories companies is 8.48, based on 1,081 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. Nivaka Fashions's current WACC % of 13.17% is 55.3% 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 Nivaka Fashions and its competitors. For the Manufacturing - Apparel & Accessories industry, the median WACC % is 8.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nivaka Fashions's current WACC % is 13.17%, which is near median its own 10-year median of 12.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nivaka Fashions stock overvalued right now?
Based on GuruFocus' analysis, Nivaka Fashions (BOM:542206) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹0.05, compared to a current price of ₹0.51 — trading 920% above its estimated fair value. The current WACC % is 13.17%, which is near median its 10-year median of 12.03 and 55.3% above the Manufacturing - Apparel & Accessories industry median of 8.48. Nivaka Fashions' overall GF Score™ is 27/100 with 7 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 Nivaka Fashions (BOM:542206), the current WACC % is 13.17% as of Jul. 23, 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 Nivaka Fashions (BOM:542206) Overvalued in 2026?
Based on GuruFocus' analysis, Nivaka Fashions stock appears to be overvalued.
The current stock price of ₹0.51 is trading 920% above its estimated GF Value™ of ₹0.05.
GuruFocus considers Nivaka Fashions to be Significantly Overvalued.
Key valuation signals for BOM:542206:
WACC %: 13.17% (near median its 10-year median of 12.03)
GF Value™: ₹0.05 vs. price of ₹0.51 (920% above fair value)
Industry Position: 55.3% above the Manufacturing - Apparel & Accessories median (#957 of 1081)
No single metric tells the full story. See the BOM:542206 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nivaka Fashions Ltd is an Indian company engaged in retailing Indian ethnic wear through omni channels like offline retail stores and online e-commerce websites. The company owns the brand 'Ninecolours'. The company manufactures certain products in its own brand in the name of 'Ninecolours West', 'Nine colours Quirk' and 'Ninecolours Luxe'. The company offers products like sarees, lehengas, kurtis, suits and gowns for women; kurtas, sherwanis, jackets and kurta pyjamas for men and ethnic wear collections for children. The company also offers a range of jewellery and Home decors products like Bed sheets, Table tops, Wall art and Dewan sets. The company generates the majority of its revenue from the sale of products.
27GF Score
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