Gian Life Care (BOM:542918) WACC %:10.03% (As of Aug. 06, 2026) — 14% Below Median

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Director of Data and Quant Analytics at GuruFocus
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BOM:542918 Gian Life Care Ltd BOM:542918
59 GF Score
Price ₹4.91
GF Value ₹5.88
Valuation Modestly Undervalued
! 4 Warning Signs
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What is Gian Life Care WACC %?

Gian Life Care BOM:542918 -0.41% 59 WACC % is 10.03% as of Aug. 06, 2026, which is 14% below its 10-year median of 11.62. GuruFocus rates BOM:542918 with a GF Score™ of 59/100 and a GF Value™ of ₹5.88 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 217 Medical Diagnostics & Research companies, Gian Life Care ranks worse than 55.3% on this metric.

As of today (2026-08-06), Gian Life Care's weighted average cost of capital is 10.03%%. Gian Life Care's ROIC % is -1.75% (calculated using TTM income statement data). Gian Life Care 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.


Gian Life Care  (BOM:542918) 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, Gian Life Care's weighted average cost of capital is 10.03%%. Gian Life Care's ROIC % is -1.75% (calculated using TTM income statement data). Gian Life Care 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

Gian Life Care WACC % Historical Data

* Premium members only.

The historical data trend for Gian Life Care'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.

Gian Life Care WACC % Chart

Gian Life Care Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
WACC %
Get a 7-Day Free Trial 9.35 12.67 15.25 17.08 10.57

Gian Life Care Quarterly Data
Sep20 Mar21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25
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 0.00 10.57 0.00 8.70 0.00

BOM:542918 vs TMO, DHR, IDXX: WACC % Comparison

For the Diagnostics & Research subindustry, Gian Life Care'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.


Gian Life Care WACC % vs Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Gian Life Care's WACC % distribution charts can be found below:

* The bar in red indicates where Gian Life Care's WACC % falls into.


BOM:542918
59GF Score
Gian Life Care Ltd BOM:542918
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Gian Life Care 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, Gian Life Care's market capitalization (E) is ₹50.777 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, Gian Life Care's latest one-year quarterly average Book Value of Debt (D) is ₹54.2753 Mil.
a) weight of equity = E / (E + D) = 50.777 / (50.777 + 54.2753) = 0.4833
b) weight of debt = D / (E + D) = 54.2753 / (50.777 + 54.2753) = 0.5167

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. Gian Life Care's beta is 0.7954.
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% + 0.7954 * 6% = 11.7924%

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, Gian Life Care's interest expense (positive number) was ₹4.645 Mil. Its total Book Value of Debt (D) is ₹54.2753 Mil.
Cost of Debt = 4.645 / 54.2753 = 8.5582%.

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 = -0.15 / -7.197 = 2.08%.

Gian Life Care'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)
=0.4833*11.7924%+0.5167*8.5582%*(1 - 2.08%)
=10.03%

* 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 10.03% mean?
Gian Life Care (BOM:542918) has a WACC % of 10.03% as of Aug. 06, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Gian Life Care and its competitors. This is 14% below median its historical median of 11.62. Over the past decade, Gian Life Care's WACC % has ranged from 9.35 to 17.08. According to the industry distribution chart, Gian Life Care ranks #120 out of 217 companies in the Medical Diagnostics & Research industry, placing it in the top 55.3%.
Is Gian Life Care's WACC % too high?
Gian Life Care's current WACC % of 10.03% is 14% below median its 10-year median of 11.62. Over the past 10 years, this metric has ranged from a low of 9.35 to a high of 17.08. The Medical Diagnostics & Research industry median WACC % is 8.95. Gian Life Care's value of 10.03% is 12.1% above this industry median. Based on the distribution chart, Gian Life Care ranks #120 out of 217 companies in the Medical Diagnostics & Research industry, which is below the industry midpoint. Overall, Gian Life Care has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gian Life Care's WACC % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Gian Life Care ranks #120 out of 217 companies for WACC %. This places Gian Life Care in the lower half of its industry. The industry median WACC % is 8.95. Gian Life Care's value of 10.03% is 12.1% above this benchmark. Historically, Gian Life Care's own WACC % has ranged from 9.35 to 17.08 over the past decade. While the company's 10-year median is 11.62 vs. the industry median of 8.95, Gian Life Care 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 Medical Diagnostics & Research company?
The median WACC % among Medical Diagnostics & Research companies is 8.95, based on 217 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. Gian Life Care's current WACC % of 10.03% is 12.1% 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 Gian Life Care and its competitors. For the Medical Diagnostics & Research industry, the median WACC % is 8.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gian Life Care's current WACC % is 10.03%, which is 14% below median its own 10-year median of 11.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gian Life Care stock overvalued right now?
Based on GuruFocus' analysis, Gian Life Care (BOM:542918) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹5.88, compared to a current price of ₹4.91 — trading 16.5% below its estimated fair value. The current WACC % is 10.03%, which is 14% below median its 10-year median of 11.62 and 12.1% above the Medical Diagnostics & Research industry median of 8.95. Gian Life Care's overall GF Score™ is 59/100 with 4 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 Gian Life Care (BOM:542918), the current WACC % is 10.03% as of Aug. 06, 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 Gian Life Care (BOM:542918) Overvalued in 2026?

Based on GuruFocus' analysis, Gian Life Care stock appears to be undervalued. The current stock price of ₹4.91 is trading 16.5% below its estimated GF Value™ of ₹5.88. GuruFocus considers Gian Life Care to be Modestly Undervalued.

Key valuation signals for BOM:542918:

  • WACC %: 10.03% (14% below median its 10-year median of 11.62)
  • GF Value™: ₹5.88 vs. price of ₹4.91 (16.5% below fair value)
  • GF Score™: 59/100 with 4 warning signs
  • Industry Position: 12.1% above the Medical Diagnostics & Research median (#120 of 217)

No single metric tells the full story. See the BOM:542918 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Gian Life Care Business Description

Address 7/216 (6) Swaroop Nagar, Infront of L-L.R. Hospital, Kanpur, UP, IND, 208002
Gian Life Care Ltd is an Indian firm engaged in the business of providing diagnostic and related healthcare tests and services in Kanpur and nearby areas. The company provides a broad range of diagnostic and related healthcare tests and services such as patient diagnosis, prevention, and wellness diagnosis services to its patients and healthcare providers. Its customers include individual patients, hospitals, other healthcare providers, and corporate customers. Substantial revenue accrues from the Pathological Testing Fees. The company has only one operating segment namely, Laboratories Pathological Investigations.
59GF Score

Get the complete analysis for BOM:542918

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

₹4.91
Price
₹5.88
GF Value