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Arrowhead Seperation EngineeringBOM:544025 34 WACC % is 10.78% as of Jul. 27, 2026, which is 3% below its 10-year median of 11.15. GuruFocus rates BOM:544025 with a GF Score™ of 34/100. The stock has 4 warning signs investors should review. Among 3,092 Industrial Products companies, Arrowhead Seperation Engineering ranks worse than 63.62% on this metric.
As of today (2026-07-27), Arrowhead Seperation Engineering's weighted average cost of capital is 10.78%%. Arrowhead Seperation Engineering's ROIC % is 1.79% (calculated using TTM income statement data).
Arrowhead Seperation 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, Arrowhead Seperation Engineering's weighted average cost of capital is 10.78%%. Arrowhead Seperation Engineering's ROIC % is 1.79% (calculated using TTM income statement data).
Arrowhead Seperation 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 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
Arrowhead Seperation 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 Specialty Industrial Machinery subindustry, Arrowhead Seperation 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.
Arrowhead Seperation Engineering WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Arrowhead Seperation Engineering's WACC % distribution charts can be found below:
* The bar in red indicates where Arrowhead Seperation 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, Arrowhead Seperation Engineering's market capitalization (E) is ₹130.993 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, Arrowhead Seperation Engineering's latest one-year semi-annual average Book Value of Debt (D) is ₹54.9673 Mil.
a) weight of equity = E / (E + D) = 130.993 / (130.993 + 54.9673) = 0.7044
b) weight of debt = D / (E + D) = 54.9673 / (130.993 + 54.9673) = 0.2956
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. Arrowhead Seperation 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 semi-annual average debt to get the simplified cost of debt.
As of Mar. 2026, Arrowhead Seperation Engineering's interest expense (positive number) was ₹4.879 Mil. Its total Book Value of Debt (D) is ₹54.9673 Mil.
Cost of Debt = 4.879 / 54.9673 = 8.8762%.
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 = 1.042 / 2.699 = 38.61%.
* 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.
Arrowhead Seperation Engineering (BOM:544025) has a WACC % of 10.78% as of Jul. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Arrowhead Seperation Engineering and its competitors. This is near median its historical median of 11.15. Over the past decade, Arrowhead Seperation Engineering's WACC % has ranged from 10.66 to 12.93. According to the industry distribution chart, Arrowhead Seperation Engineering ranks #1967 out of 3092 companies in the Industrial Products industry, placing it in the top 63.6%.
Is Arrowhead Seperation Engineering's WACC % too high?
Arrowhead Seperation Engineering's current WACC % of 10.78% is near median its 10-year median of 11.15. Over the past 10 years, this metric has ranged from a low of 10.66 to a high of 12.93. The Industrial Products industry median WACC % is 9.71. Arrowhead Seperation Engineering's value of 10.78% is 11% above this industry median. Based on the distribution chart, Arrowhead Seperation Engineering ranks #1967 out of 3092 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Arrowhead Seperation Engineering has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Arrowhead Seperation Engineering's WACC % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Arrowhead Seperation Engineering ranks #1967 out of 3092 companies for WACC %. This places Arrowhead Seperation Engineering in the lower half of its industry. The industry median WACC % is 9.71. Arrowhead Seperation Engineering's value of 10.78% is 11% above this benchmark. Historically, Arrowhead Seperation Engineering's own WACC % has ranged from 10.66 to 12.93 over the past decade. While the company's 10-year median is 11.15 vs. the industry median of 9.71, Arrowhead Seperation 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 an Industrial Products company?
The median WACC % among Industrial Products companies is 9.71, based on 3,092 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. Arrowhead Seperation Engineering's current WACC % of 10.78% is 11% 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 Arrowhead Seperation Engineering and its competitors. For the Industrial Products industry, the median WACC % is 9.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arrowhead Seperation Engineering's current WACC % is 10.78%, which is near median its own 10-year median of 11.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arrowhead Seperation Engineering stock overvalued right now?
Arrowhead Seperation Engineering (BOM:544025) has a current WACC % of 10.78%. The current WACC % is 10.78%, which is near median its 10-year median of 11.15 and 11% above the Industrial Products industry median of 9.71. Arrowhead Seperation Engineering's overall GF Score™ is 34/100 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 Arrowhead Seperation Engineering (BOM:544025), the current WACC % is 10.78% as of Jul. 27, 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.
Arrowhead Seperation Engineering Business Description
Arrowhead Seperation Engineering Ltd is engaged in the design and manufacture of various chemical process equipment with a specialization in continuous drying and cooling system equipment. The company's product list consists of Vacuum Double Drum Dryer, Rotary Dryers, Flaker Systems, Zero Liquid Discharge System, Double Drum Dryer, Paddle Dryer, and Belt Dryer. The company generates revenue from local sales as well as export sales.
34GF Score
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