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As of today (2026-08-09), Ratnaveer Precision Engineering's weighted average cost of capital is 12.15%%. Ratnaveer Precision Engineering's ROIC % is 11.95% (calculated using TTM income statement data).
Ratnaveer Precision Engineering earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
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, Ratnaveer Precision Engineering's weighted average cost of capital is 12.15%%. Ratnaveer Precision Engineering's ROIC % is 11.95% (calculated using TTM income statement data).
Ratnaveer Precision Engineering earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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
Ratnaveer Precision Engineering 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.
For the Steel subindustry, Ratnaveer Precision Engineering'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.
Ratnaveer Precision Engineering WACC % vs Steel Industry
For the Steel industry and Basic Materials sector, Ratnaveer Precision Engineering's WACC % distribution charts can be found below:
* The bar in red indicates where Ratnaveer Precision Engineering'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, Ratnaveer Precision Engineering's market capitalization (E) is ₹14703.182 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, Ratnaveer Precision Engineering's latest one-year quarterly average Book Value of Debt (D) is ₹2476.88 Mil.
a) weight of equity = E / (E + D) = 14703.182 / (14703.182 + 2476.88) = 0.8558
b) weight of debt = D / (E + D) = 2476.88 / (14703.182 + 2476.88) = 0.1442
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. Ratnaveer Precision Engineering's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 * 6% = 13.02%
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, Ratnaveer Precision Engineering's interest expense (positive number) was ₹204.89 Mil. Its total Book Value of Debt (D) is ₹2476.88 Mil.
Cost of Debt = 204.89 / 2476.88 = 8.2721%.
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 = 116.74 / 759.79 = 15.36%.
* 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.
Ratnaveer Precision Engineering (BOM:543978) has a WACC % of 12.15% as of Aug. 09, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Ratnaveer Precision Engineering and its competitors. This is 11% above median its historical median of 10.97. Over the past decade, Ratnaveer Precision Engineering's WACC % has ranged from 2.83 to 12.15. According to the industry distribution chart, Ratnaveer Precision Engineering ranks #500 out of 638 companies in the Steel industry, placing it in the top 78.4%.
Is Ratnaveer Precision Engineering's WACC % too high?
Ratnaveer Precision Engineering's current WACC % of 12.15% is 11% above median its 10-year median of 10.97. Over the past 10 years, this metric has ranged from a low of 2.83 to a high of 12.15. The Steel industry median WACC % is 7.93. Ratnaveer Precision Engineering's value of 12.15% is 53.2% above this industry median. Based on the distribution chart, Ratnaveer Precision Engineering ranks #500 out of 638 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Ratnaveer Precision Engineering has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ratnaveer Precision Engineering's WACC % compare to NUE and STLD?
According to the Steel industry distribution chart, Ratnaveer Precision Engineering ranks #500 out of 638 companies for WACC %. This places Ratnaveer Precision Engineering in the lower half of its industry. The industry median WACC % is 7.93. Ratnaveer Precision Engineering's value of 12.15% is 53.2% above this benchmark. Historically, Ratnaveer Precision Engineering's own WACC % has ranged from 2.83 to 12.15 over the past decade. While the company's 10-year median is 10.97 vs. the industry median of 7.93, Ratnaveer Precision Engineering 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 Steel company?
The median WACC % among Steel companies is 7.93, based on 638 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. Ratnaveer Precision Engineering's current WACC % of 12.15% is 53.2% 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 Ratnaveer Precision Engineering and its competitors. For the Steel industry, the median WACC % is 7.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ratnaveer Precision Engineering's current WACC % is 12.15%, which is 11% above median its own 10-year median of 10.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ratnaveer Precision Engineering stock overvalued right now?
Based on GuruFocus' analysis, Ratnaveer Precision Engineering (BOM:543978) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹180.23, compared to a current price of ₹205.85 — trading 14.2% above its estimated fair value. The current WACC % is 12.15%, which is 11% above median its 10-year median of 10.97 and 53.2% above the Steel industry median of 7.93. Ratnaveer Precision Engineering's overall GF Score™ is 67/100 with 6 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 Ratnaveer Precision Engineering (BOM:543978), the current WACC % is 12.15% as of Aug. 09, 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 Ratnaveer Precision Engineering (BOM:543978) Overvalued in 2026?
Based on GuruFocus' analysis, Ratnaveer Precision Engineering stock appears to be overvalued.
The current stock price of ₹205.85 is trading 14.2% above its estimated GF Value™ of ₹180.23.
GuruFocus considers Ratnaveer Precision Engineering to be Modestly Overvalued.
Key valuation signals for BOM:543978:
WACC %: 12.15% (11% above median its 10-year median of 10.97)
GF Value™: ₹180.23 vs. price of ₹205.85 (14.2% above fair value)
Industry Position: 53.2% above the Steel median (#500 of 638)
No single metric tells the full story. See the BOM:543978 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ratnaveer Precision Engineering Ltd is a stainless steel (SS) product manufacturer focused on producing finished sheets, washers, solar roofing hooks, pipes and tubes. It manufactures finishing sheets, washers, and solar mounting hooks at Unit I and SS pipes & tubes at Unit II. Unit III and Unit IV are dedicated to the backward integration process where Unit III is the melting unit where the company melts steel scrap and turns it into steel ingots and Unit IV is the rolling unit where flat ingots are further processed to turn them into sheets which are the raw material for washers. Geographically, the company derives a majority of its revenue from its customers within India, and the rest from countries like Germany, Italy, Sweden, Austria, France, and others through exports.
67GF Score
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