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Recode StudiosBOM:544755 +2.93%17 WACC % is 10.65% as of Aug. 14, 2026, which is 6% above its 10-year median of 10.06. GuruFocus rates BOM:544755 with a GF Score™ of 17/100. The stock has 1 warning sign investors should review. Among 2,033 Consumer Packaged Goods companies, Recode Studios ranks worse than 78.46% on this metric.
As of today (2026-08-14), Recode Studios's weighted average cost of capital is 10.65%%. Recode Studios's ROIC % is 27.30% (calculated using TTM income statement data).
Recode Studios 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.
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, Recode Studios's weighted average cost of capital is 10.65%%. Recode Studios's ROIC % is 27.30% (calculated using TTM income statement data).
Recode Studios 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 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 annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
Related Terms
Recode Studios WACC % Historical Data
* Premium members only.
The historical data trend for Recode Studios'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.
Recode Studios WACC % Chart
Recode Studios Annual Data
Trend
Mar23
Mar24
Mar25
WACC %
5.26
10.06
10.35
Recode Studios Semi-Annual Data
Mar23
Mar24
Mar25
WACC %
5.26
10.06
10.35
BOM:544755 vs PG, CL, KVUE: WACC % Comparison
For the Household & Personal Products subindustry, Recode Studios'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.
Recode Studios WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Recode Studios's WACC % distribution charts can be found below:
* The bar in red indicates where Recode Studios'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, Recode Studios's market capitalization (E) is ₹2786.157 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 annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2025, Recode Studios's latest one-year annual average Book Value of Debt (D) is ₹77.054 Mil.
a) weight of equity = E / (E + D) = 2786.157 / (2786.157 + 77.054) = 0.9731
b) weight of debt = D / (E + D) = 77.054 / (2786.157 + 77.054) = 0.0269
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 4.657%. 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. Recode Studios'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 = 4.657% + 1 * 6% = 10.657%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Mar. 2025, Recode Studios's interest expense (positive number) was ₹10.706 Mil. Its total Book Value of Debt (D) is ₹77.054 Mil.
Cost of Debt = 10.706 / 77.054 = 13.8942%.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual 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 annual Tax Rate = 11.317 / 44.345 = 25.52%.
Recode Studios'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)
=
0.9731
*
10.657%
+
0.0269
*
13.8942%
*
(1 - 25.52%)
=
10.65%
* 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.
Recode Studios (BOM:544755) has a WACC % of 10.65% as of Aug. 14, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Recode Studios and its competitors. This is near median its historical median of 10.06. Over the past decade, Recode Studios' WACC % has ranged from 5.26 to 10.64. According to the industry distribution chart, Recode Studios ranks #1595 out of 2033 companies in the Consumer Packaged Goods industry, placing it in the top 78.5%.
Is Recode Studios' WACC % too high?
Recode Studios' current WACC % of 10.65% is near median its 10-year median of 10.06. Over the past 10 years, this metric has ranged from a low of 5.26 to a high of 10.64. The Consumer Packaged Goods industry median WACC % is 7.55. Recode Studios' value of 10.65% is 41.1% above this industry median. Based on the distribution chart, Recode Studios ranks #1595 out of 2033 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Recode Studios has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Recode Studios' WACC % compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Recode Studios ranks #1595 out of 2033 companies for WACC %. This places Recode Studios in the lower half of its industry. The industry median WACC % is 7.55. Recode Studios' value of 10.65% is 41.1% above this benchmark. Historically, Recode Studios' own WACC % has ranged from 5.26 to 10.64 over the past decade. While the company's 10-year median is 10.06 vs. the industry median of 7.55, Recode Studios 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 Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.55, based on 2,033 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. Recode Studios's current WACC % of 10.65% is 41.1% 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 Recode Studios and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Recode Studios's current WACC % is 10.65%, which is near median its own 10-year median of 10.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Recode Studios stock overvalued right now?
Recode Studios (BOM:544755) has a current WACC % of 10.65%. The current WACC % is 10.65%, which is near median its 10-year median of 10.06 and 41.1% above the Consumer Packaged Goods industry median of 7.55. Recode Studios' overall GF Score™ is 17/100 with 1 warning sign 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 Recode Studios (BOM:544755), the current WACC % is 10.65% as of Aug. 14, 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.
Recode Studios Ltd is a beauty and personal care (BPC) company operating in the beauty, cosmetics and personal care segment in India. It is engaged in the branding, procurement and distribution of beauty and personal care products under the "Recode" brand. The company offers a diversified portfolio of products across make-up, skincare, body care and beauty accessories. Its product portfolio includes face make-up, eye make-up, lip makeup, face and body care products and beauty accessories. The majority of revenue is derived from the Face Make-Up category, which includes products such as foundations, primers, concealers and related face cosmetics.
17GF Score
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