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Luxury TimeBOM:544635 -4.95%19 WACC % is 13.1% as of Jul. 28, 2026, which is 19% below its 10-year median of 16.23. GuruFocus rates BOM:544635 with a GF Score™ of 19/100. The stock has 2 warning signs investors should review. Among 1,145 Retail - Cyclical companies, Luxury Time ranks worse than 90.48% on this metric.
As of today (2026-07-28), Luxury Time's weighted average cost of capital is 13.1%%. Luxury Time's ROIC % is 21.58% (calculated using TTM income statement data).
Luxury Time 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.
*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.
Luxury Time (BOM:544635) 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, Luxury Time's weighted average cost of capital is 13.1%%. Luxury Time's ROIC % is 21.58% (calculated using TTM income statement data).
Luxury Time 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.
*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
Luxury Time WACC % Historical Data
* Premium members only.
The historical data trend for Luxury Time's WACC % can be seen below:
* 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.
Luxury Time WACC % Chart
Luxury Time Annual Data
Trend
Mar23
Mar24
Mar25
Mar26
WACC %
0.00
0.00
19.53
12.93
Luxury Time Semi-Annual Data
Mar23
Mar24
Mar25
Sep25
Mar26
WACC %
0.00
0.00
19.53
21.61
12.93
BOM:544635 vs TPR: WACC % Comparison
For the Luxury Goods subindustry, Luxury Time'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.
Luxury Time WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Luxury Time's WACC % distribution charts can be found below:
* The bar in red indicates where Luxury Time'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, Luxury Time's market capitalization (E) is ₹572.637 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, Luxury Time's latest one-year semi-annual average Book Value of Debt (D) is ₹18.6773 Mil.
a) weight of equity = E / (E + D) = 572.637 / (572.637 + 18.6773) = 0.9684
b) weight of debt = D / (E + D) = 18.6773 / (572.637 + 18.6773) = 0.0316
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. Luxury Time'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, Luxury Time's interest expense (positive number) was ₹3.79 Mil. Its total Book Value of Debt (D) is ₹18.6773 Mil.
Cost of Debt = 3.79 / 18.6773 = 20.292%.
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 = 16.002 / 66.749 = 23.97%.
Luxury Time's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.9684
*
13.02%
+
0.0316
*
20.292%
*
(1 - 23.97%)
=
13.1%
* 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.
Luxury Time (BOM:544635) has a WACC % of 13.1% as of Jul. 28, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Luxury Time and its competitors. This is 19% below median its historical median of 16.23. Over the past decade, Luxury Time's WACC % has ranged from 12.93 to 19.53. According to the industry distribution chart, Luxury Time ranks #1036 out of 1145 companies in the Retail - Cyclical industry, placing it in the top 90.5%.
Is Luxury Time's WACC % too high?
Luxury Time's current WACC % of 13.1% is 19% below median its 10-year median of 16.23. Over the past 10 years, this metric has ranged from a low of 12.93 to a high of 19.53. The Retail - Cyclical industry median WACC % is 7.56. Luxury Time's value of 13.1% is 73.3% above this industry median. Based on the distribution chart, Luxury Time ranks #1036 out of 1145 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Luxury Time has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Luxury Time's WACC % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Luxury Time ranks #1036 out of 1145 companies for WACC %. This places Luxury Time in the lower half of its industry. The industry median WACC % is 7.56. Luxury Time's value of 13.1% is 73.3% above this benchmark. Historically, Luxury Time's own WACC % has ranged from 12.93 to 19.53 over the past decade. While the company's 10-year median is 16.23 vs. the industry median of 7.56, Luxury Time 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 Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.56, based on 1,145 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. Luxury Time's current WACC % of 13.1% is 73.3% 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 Luxury Time and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luxury Time's current WACC % is 13.1%, which is 19% below median its own 10-year median of 16.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luxury Time stock overvalued right now?
Luxury Time (BOM:544635) has a current WACC % of 13.1%. The current WACC % is 13.1%, which is 19% below median its 10-year median of 16.23 and 73.3% above the Retail - Cyclical industry median of 7.56. Luxury Time's overall GF Score™ is 19/100 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 Luxury Time (BOM:544635), the current WACC % is 13.1% as of Jul. 28, 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.
Luxury Time Ltd trades in luxury watches and clocks such as TAG Heuer, Hublot, and Zenith, and provides watch servicing through a fully operational service center. The Company undertakes the distribution, marketing, retailing, and after-sales servicing of Swiss luxury watches, along with the distribution of watch service-related tools and equipment in India. Its business operates across five integrated segments, including Watch Distribution B2B, Direct to Consumer and e-commerce Sales, After Sales Services, Branding, PR and Marketing Support, and Tools and Machinery Distribution, with the majority of revenue derived from the Watch Distribution B2B segment.
19GF Score
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