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As of today (2026-08-05), Silver Pearl Hospitality & Luxury Spaces's weighted average cost of capital is 9.88%%. Silver Pearl Hospitality & Luxury Spaces's ROIC % is -3.66% (calculated using TTM income statement data).
Silver Pearl Hospitality & Luxury Spaces 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.
Silver Pearl Hospitality & Luxury Spaces (BOM:543536) 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, Silver Pearl Hospitality & Luxury Spaces's weighted average cost of capital is 9.88%%. Silver Pearl Hospitality & Luxury Spaces's ROIC % is -3.66% (calculated using TTM income statement data).
Silver Pearl Hospitality & Luxury Spaces 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
Silver Pearl Hospitality & Luxury Spaces WACC % Historical Data
* 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.
Silver Pearl Hospitality & Luxury Spaces WACC % Chart
Silver Pearl Hospitality & Luxury Spaces Annual Data
* 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.
Silver Pearl Hospitality & Luxury Spaces WACC % vs Travel & Leisure Industry
Silver Pearl Hospitality & Luxury Spaces 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, Silver Pearl Hospitality & Luxury Spaces's market capitalization (E) is ₹36.438 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, Silver Pearl Hospitality & Luxury Spaces's latest one-year semi-annual average Book Value of Debt (D) is ₹0 Mil.
a) weight of equity = E / (E + D) = 36.438 / (36.438 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (36.438 + 0) = 0
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. Silver Pearl Hospitality & Luxury Spaces's beta is 0.4765.
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% + 0.4765 * 6% = 9.879%
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, Silver Pearl Hospitality & Luxury Spaces's interest expense (positive number) was ₹-0 Mil. Its total Book Value of Debt (D) is ₹0 Mil.
Cost of Debt = -0 / 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 = 0.356 / 1.747 = 20.38%.
* 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.
Silver Pearl Hospitality & Luxury Spaces (BOM:543536) has a WACC % of 9.88% as of Aug. 05, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Silver Pearl Hospitality & Luxury Spaces and its competitors. This is 22% below median its historical median of 12.68. Over the past decade, Silver Pearl Hospitality & Luxury Spaces' WACC % has ranged from 0.10 to 13.36. According to the industry distribution chart, Silver Pearl Hospitality & Luxury Spaces ranks #585 out of 869 companies in the Travel & Leisure industry, placing it in the top 67.3%.
Is Silver Pearl Hospitality & Luxury Spaces' WACC % too high?
Silver Pearl Hospitality & Luxury Spaces' current WACC % of 9.88% is 22% below median its 10-year median of 12.68. Over the past 10 years, this metric has ranged from a low of 0.10 to a high of 13.36. The Travel & Leisure industry median WACC % is 7.83. Silver Pearl Hospitality & Luxury Spaces' value of 9.88% is 26.2% above this industry median. Based on the distribution chart, Silver Pearl Hospitality & Luxury Spaces ranks #585 out of 869 companies in the Travel & Leisure industry, which is below the industry midpoint. Overall, Silver Pearl Hospitality & Luxury Spaces has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Silver Pearl Hospitality & Luxury Spaces' WACC % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Silver Pearl Hospitality & Luxury Spaces ranks #585 out of 869 companies for WACC %. This places Silver Pearl Hospitality & Luxury Spaces in the lower half of its industry. The industry median WACC % is 7.83. Silver Pearl Hospitality & Luxury Spaces' value of 9.88% is 26.2% above this benchmark. Historically, Silver Pearl Hospitality & Luxury Spaces' own WACC % has ranged from 0.10 to 13.36 over the past decade. While the company's 10-year median is 12.68 vs. the industry median of 7.83, Silver Pearl Hospitality & Luxury Spaces 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 Travel & Leisure company?
The median WACC % among Travel & Leisure companies is 7.83, based on 869 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. Silver Pearl Hospitality & Luxury Spaces's current WACC % of 9.88% is 26.2% 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 Silver Pearl Hospitality & Luxury Spaces and its competitors. For the Travel & Leisure industry, the median WACC % is 7.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Silver Pearl Hospitality & Luxury Spaces's current WACC % is 9.88%, which is 22% below median its own 10-year median of 12.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silver Pearl Hospitality & Luxury Spaces stock overvalued right now?
Based on GuruFocus' analysis, Silver Pearl Hospitality & Luxury Spaces (BOM:543536) is currently considered Fairly Valued. The stock's GF Value™ is ₹4.61, compared to a current price of ₹4.87 — trading 5.6% above its estimated fair value. The current WACC % is 9.88%, which is 22% below median its 10-year median of 12.68 and 26.2% above the Travel & Leisure industry median of 7.83. Silver Pearl Hospitality & Luxury Spaces' overall GF Score™ is 64/100 with 2 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 Silver Pearl Hospitality & Luxury Spaces (BOM:543536), the current WACC % is 9.88% as of Aug. 05, 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 Silver Pearl Hospitality & Luxury Spaces (BOM:543536) Overvalued in 2026?
Based on GuruFocus' analysis, Silver Pearl Hospitality & Luxury Spaces stock appears to be overvalued.
The current stock price of ₹4.87 is trading 5.6% above its estimated GF Value™ of ₹4.61.
GuruFocus considers Silver Pearl Hospitality & Luxury Spaces to be Fairly Valued.
Key valuation signals for BOM:543536:
WACC %: 9.88% (22% below median its 10-year median of 12.68)
GF Value™: ₹4.61 vs. price of ₹4.87 (5.6% above fair value)
Industry Position: 26.2% above the Travel & Leisure median (#585 of 869)
No single metric tells the full story. See the BOM:543536 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Silver Pearl Hospitality & Luxury Spaces Ltd is a hospitality company. The company is involved in the mid-priced hotel category, which includes upper-midscale, midscale, and economy hotels. The company's properties are located in Rakchham, Kinnaur, Himachal Pradesh & in the state of Goa.
64GF Score
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