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Vijaya Diagnostic CentreBOM:543350 -5.16%83 WACC % is 11.12% as of Jul. 18, 2026, which is 2% below its 10-year median of 11.32. GuruFocus rates BOM:543350 with a GF Score™ of 83/100 and a GF Value™ of ₹1,191.11 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 217 Medical Diagnostics & Research companies, Vijaya Diagnostic Centre ranks worse than 67.74% on this metric.
As of today (2026-07-18), Vijaya Diagnostic Centre's weighted average cost of capital is 11.12%%. Vijaya Diagnostic Centre's ROIC % is 15.45% (calculated using TTM income statement data).
Vijaya Diagnostic Centre generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Vijaya Diagnostic Centre (BOM:543350) 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, Vijaya Diagnostic Centre's weighted average cost of capital is 11.12%%. Vijaya Diagnostic Centre's ROIC % is 15.45% (calculated using TTM income statement data).
Vijaya Diagnostic Centre generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
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.
* 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 Diagnostics & Research subindustry, Vijaya Diagnostic Centre'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.
Vijaya Diagnostic Centre WACC % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Vijaya Diagnostic Centre's WACC % distribution charts can be found below:
* The bar in red indicates where Vijaya Diagnostic Centre'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, Vijaya Diagnostic Centre's market capitalization (E) is ₹137994.802 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, Vijaya Diagnostic Centre's latest one-year quarterly average Book Value of Debt (D) is ₹3691.4263 Mil.
a) weight of equity = E / (E + D) = 137994.802 / (137994.802 + 3691.4263) = 0.9739
b) weight of debt = D / (E + D) = 3691.4263 / (137994.802 + 3691.4263) = 0.0261
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. Vijaya Diagnostic Centre's beta is 0.7023.
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% + 0.7023 * 6% = 11.2338%
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, Vijaya Diagnostic Centre's interest expense (positive number) was ₹332.309 Mil. Its total Book Value of Debt (D) is ₹3691.4263 Mil.
Cost of Debt = 332.309 / 3691.4263 = 9.0022%.
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 = 597.023 / 2326.789 = 25.66%.
* 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.
Vijaya Diagnostic Centre (BOM:543350) has a WACC % of 11.12% as of Jul. 18, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Vijaya Diagnostic Centre and its competitors. This is near median its historical median of 11.32. Over the past decade, Vijaya Diagnostic Centre's WACC % has ranged from 6.69 to 13.01. According to the industry distribution chart, Vijaya Diagnostic Centre ranks #147 out of 217 companies in the Medical Diagnostics & Research industry, placing it in the top 67.7%.
Is Vijaya Diagnostic Centre's WACC % too high?
Vijaya Diagnostic Centre's current WACC % of 11.12% is near median its 10-year median of 11.32. Over the past 10 years, this metric has ranged from a low of 6.69 to a high of 13.01. The Medical Diagnostics & Research industry median WACC % is 8.97. Vijaya Diagnostic Centre's value of 11.12% is 24% above this industry median. Based on the distribution chart, Vijaya Diagnostic Centre ranks #147 out of 217 companies in the Medical Diagnostics & Research industry, which is below the industry midpoint. Overall, Vijaya Diagnostic Centre has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vijaya Diagnostic Centre's WACC % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Vijaya Diagnostic Centre ranks #147 out of 217 companies for WACC %. This places Vijaya Diagnostic Centre in the lower half of its industry. The industry median WACC % is 8.97. Vijaya Diagnostic Centre's value of 11.12% is 24% above this benchmark. Historically, Vijaya Diagnostic Centre's own WACC % has ranged from 6.69 to 13.01 over the past decade. While the company's 10-year median is 11.32 vs. the industry median of 8.97, Vijaya Diagnostic Centre 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 8.97, 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. Vijaya Diagnostic Centre's current WACC % of 11.12% is 24% 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 Vijaya Diagnostic Centre and its competitors. For the Medical Diagnostics & Research industry, the median WACC % is 8.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vijaya Diagnostic Centre's current WACC % is 11.12%, which is near median its own 10-year median of 11.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vijaya Diagnostic Centre stock overvalued right now?
Based on GuruFocus' analysis, Vijaya Diagnostic Centre (BOM:543350) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,191.11, compared to a current price of ₹1,341.10 — trading 12.6% above its estimated fair value. The current WACC % is 11.12%, which is near median its 10-year median of 11.32 and 24% above the Medical Diagnostics & Research industry median of 8.97. Vijaya Diagnostic Centre's overall GF Score™ is 83/100 with 5 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 Vijaya Diagnostic Centre (BOM:543350), the current WACC % is 11.12% as of Jul. 18, 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 Vijaya Diagnostic Centre (BOM:543350) Overvalued in 2026?
Based on GuruFocus' analysis, Vijaya Diagnostic Centre stock appears to be overvalued.
The current stock price of ₹1,341.10 is trading 12.6% above its estimated GF Value™ of ₹1,191.11.
GuruFocus considers Vijaya Diagnostic Centre to be Modestly Overvalued.
Key valuation signals for BOM:543350:
WACC %: 11.12% (near median its 10-year median of 11.32)
GF Value™: ₹1,191.11 vs. price of ₹1,341.10 (12.6% above fair value)
Industry Position: 24% above the Medical Diagnostics & Research median (#147 of 217)
No single metric tells the full story. See the BOM:543350 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vijaya Diagnostic Centre Ltd operates a diagnostic chain in Southern India. The company offers a one-stop solution for pathology and radiology testing services. It provides routine tests, specialized pathology tests, basic tests, and radiology tests. The company also offers a broad spectrum of customized health and wellness packages to its customers. The company's revenue comes from many diagnostic centers, where high-volume sales drive its earnings. The Company operates within India. The company's operations fall within a single business segment, which is Diagnostic Services.
83GF Score
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