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Aditya Birla Sun Life AMCBOM:543374 -1.31%78 WACC % is 11.12% as of Jul. 17, 2026, which is 13% below its 10-year median of 12.74. GuruFocus rates BOM:543374 with a GF Score™ of 78/100 and a GF Value™ of ₹820.79 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,651 Asset Management companies, Aditya Birla Sun Life AMC ranks worse than 82.19% on this metric.
As of today (2026-07-17), Aditya Birla Sun Life AMC's weighted average cost of capital is 11.12%%. Aditya Birla Sun Life AMC's ROIC % is 36.89% (calculated using TTM income statement data).
Aditya Birla Sun Life AMC 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.
Aditya Birla Sun Life AMC (BOM:543374) 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, Aditya Birla Sun Life AMC's weighted average cost of capital is 11.12%%. Aditya Birla Sun Life AMC's ROIC % is 36.89% (calculated using TTM income statement data).
Aditya Birla Sun Life AMC 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 Asset Management subindustry, Aditya Birla Sun Life AMC'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.
Aditya Birla Sun Life AMC WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Aditya Birla Sun Life AMC's WACC % distribution charts can be found below:
* The bar in red indicates where Aditya Birla Sun Life AMC'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, Aditya Birla Sun Life AMC's market capitalization (E) is ₹327851.530 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, Aditya Birla Sun Life AMC's latest one-year quarterly average Book Value of Debt (D) is ₹668.4667 Mil.
a) weight of equity = E / (E + D) = 327851.530 / (327851.530 + 668.4667) = 0.998
b) weight of debt = D / (E + D) = 668.4667 / (327851.530 + 668.4667) = 0.002
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. Aditya Birla Sun Life AMC's beta is 0.6855.
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% + 0.6855 * 6% = 11.133%
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, Aditya Birla Sun Life AMC's interest expense (positive number) was ₹50.1 Mil. Its total Book Value of Debt (D) is ₹668.4667 Mil.
Cost of Debt = 50.1 / 668.4667 = 7.4948%.
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 = 2904.9 / 12655.5 = 22.95%.
* 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.
Aditya Birla Sun Life AMC (BOM:543374) has a WACC % of 11.12% as of Jul. 17, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Aditya Birla Sun Life AMC and its competitors. This is 13% below median its historical median of 12.74. Over the past decade, Aditya Birla Sun Life AMC's WACC % has ranged from 6.82 to 13.31. According to the industry distribution chart, Aditya Birla Sun Life AMC ranks #1357 out of 1651 companies in the Asset Management industry, placing it in the top 82.2%.
Is Aditya Birla Sun Life AMC's WACC % too high?
Aditya Birla Sun Life AMC's current WACC % of 11.12% is 13% below median its 10-year median of 12.74. Over the past 10 years, this metric has ranged from a low of 6.82 to a high of 13.31. The Asset Management industry median WACC % is 8.49. Aditya Birla Sun Life AMC's value of 11.12% is 31% above this industry median. Based on the distribution chart, Aditya Birla Sun Life AMC ranks #1357 out of 1651 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Aditya Birla Sun Life AMC has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aditya Birla Sun Life AMC's WACC % compare to BLK and BX?
According to the Asset Management industry distribution chart, Aditya Birla Sun Life AMC ranks #1357 out of 1651 companies for WACC %. This places Aditya Birla Sun Life AMC in the lower half of its industry. The industry median WACC % is 8.49. Aditya Birla Sun Life AMC's value of 11.12% is 31% above this benchmark. Historically, Aditya Birla Sun Life AMC's own WACC % has ranged from 6.82 to 13.31 over the past decade. While the company's 10-year median is 12.74 vs. the industry median of 8.49, Aditya Birla Sun Life AMC 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 an Asset Management company?
The median WACC % among Asset Management companies is 8.49, based on 1,651 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. Aditya Birla Sun Life AMC's current WACC % of 11.12% is 31% 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 Aditya Birla Sun Life AMC and its competitors. For the Asset Management industry, the median WACC % is 8.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aditya Birla Sun Life AMC's current WACC % is 11.12%, which is 13% below median its own 10-year median of 12.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aditya Birla Sun Life AMC stock overvalued right now?
Based on GuruFocus' analysis, Aditya Birla Sun Life AMC (BOM:543374) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹820.79, compared to a current price of ₹1,133.40 — trading 38.1% above its estimated fair value. The current WACC % is 11.12%, which is 13% below median its 10-year median of 12.74 and 31% above the Asset Management industry median of 8.49. Aditya Birla Sun Life AMC's overall GF Score™ is 78/100 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 Aditya Birla Sun Life AMC (BOM:543374), the current WACC % is 11.12% as of Jul. 17, 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 Aditya Birla Sun Life AMC (BOM:543374) Overvalued in 2026?
Based on GuruFocus' analysis, Aditya Birla Sun Life AMC stock appears to be overvalued.
The current stock price of ₹1,133.40 is trading 38.1% above its estimated GF Value™ of ₹820.79.
GuruFocus considers Aditya Birla Sun Life AMC to be Significantly Overvalued.
Key valuation signals for BOM:543374:
WACC %: 11.12% (13% below median its 10-year median of 12.74)
GF Value™: ₹820.79 vs. price of ₹1,133.40 (38.1% above fair value)
Industry Position: 31% above the Asset Management median (#1357 of 1651)
No single metric tells the full story. See the BOM:543374 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aditya Birla Sun Life AMC Ltd principally acts as an investment manager to Aditya Birla Sun Life Mutual Fund and Aditya Birla Real Estate Funds (Category II). It also provides Portfolio Management Services (PMS) and investment advisory services to offshore funds and high-net-worth investors. Geographically, the company derives its key revenue within India and the rest from outside India.
78GF Score
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