Gulf Lloyds India (BOM:544834) WACC %:10.02% (As of Aug. 31, 2026) — 18% Above Median

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Director of Data and Quant Analytics at GuruFocus
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BOM:544834 Gulf Lloyds India Ltd BOM:544834
15 GF Score
Price ₹37.45
! 2 Warning Signs
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What is Gulf Lloyds India WACC %?

Gulf Lloyds India BOM:544834 +0.43% 15 WACC % is 10.02% as of Aug. 31, 2026, which is 18% above its 10-year median of 8.46. GuruFocus rates BOM:544834 with a GF Score™ of 15/100. The stock has 2 warning signs investors should review. Among 1,110 Business Services companies, Gulf Lloyds India ranks worse than 72.25% on this metric.

As of today (2026-08-31), Gulf Lloyds India's weighted average cost of capital is 10.02%%. Gulf Lloyds India's ROIC % is 22.71% (calculated using TTM income statement data). Gulf Lloyds India 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.


Gulf Lloyds India  (BOM:544834) 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, Gulf Lloyds India's weighted average cost of capital is 10.02%%. Gulf Lloyds India's ROIC % is 22.71% (calculated using TTM income statement data). Gulf Lloyds India 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

Gulf Lloyds India WACC % Historical Data

* Premium members only.

The historical data trend for Gulf Lloyds India'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.

Gulf Lloyds India WACC % Chart

Gulf Lloyds India Annual Data
Trend Mar23 Mar24 Mar25 Mar26
WACC %
0.00 0.00 0.00 0.00

Gulf Lloyds India Semi-Annual Data
Mar23 Mar24 Mar25 Sep25 Mar26
WACC % 0.00 0.00 0.00 0.00 0.00

BOM:544834 vs CTAS, CPRT, GPN: WACC % Comparison

For the Specialty Business Services subindustry, Gulf Lloyds India'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.


Gulf Lloyds India WACC % vs Business Services Industry

For the Business Services industry and Industrials sector, Gulf Lloyds India's WACC % distribution charts can be found below:

* The bar in red indicates where Gulf Lloyds India's WACC % falls into.


BOM:544834
15GF Score
Gulf Lloyds India Ltd BOM:544834
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Gulf Lloyds India 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, Gulf Lloyds India's market capitalization (E) is ₹252.009 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, Gulf Lloyds India's latest one-year semi-annual average Book Value of Debt (D) is ₹119.282 Mil.
a) weight of equity = E / (E + D) = 252.009 / (252.009 + 119.282) = 0.6787
b) weight of debt = D / (E + D) = 119.282 / (252.009 + 119.282) = 0.3213

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 4.76%. 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. Gulf Lloyds India'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 = 4.76% + 1 * 6% = 10.76%

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, Gulf Lloyds India's interest expense (positive number) was ₹13.24 Mil. Its total Book Value of Debt (D) is ₹119.282 Mil.
Cost of Debt = 13.24 / 119.282 = 11.0997%.

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 = 13.397 / 56.426 = 23.74%.

Gulf Lloyds India'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)
=0.6787*10.76%+0.3213*11.0997%*(1 - 23.74%)
=10.02%

* 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.

Frequently Asked Questions Learn more about WACC % →
What does a WACC % of 10.02% mean?
Gulf Lloyds India (BOM:544834) has a WACC % of 10.02% as of Aug. 31, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Gulf Lloyds India and its competitors. This is 18% above median its historical median of 8.46. Over the past decade, Gulf Lloyds India's WACC % has ranged from 8.46 to 10.00. According to the industry distribution chart, Gulf Lloyds India ranks #802 out of 1110 companies in the Business Services industry, placing it in the top 72.3%.
Is Gulf Lloyds India's WACC % too high?
Gulf Lloyds India's current WACC % of 10.02% is 18% above median its 10-year median of 8.46. Over the past 10 years, this metric has ranged from a low of 8.46 to a high of 10.00. The Business Services industry median WACC % is 7.14. Gulf Lloyds India's value of 10.02% is 40.4% above this industry median. Based on the distribution chart, Gulf Lloyds India ranks #802 out of 1110 companies in the Business Services industry, which is below the industry midpoint. Overall, Gulf Lloyds India has a GF Score™ of 15/100, reflecting its overall financial health beyond just this single metric.
How does Gulf Lloyds India's WACC % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Gulf Lloyds India ranks #802 out of 1110 companies for WACC %. This places Gulf Lloyds India in the lower half of its industry. The industry median WACC % is 7.14. Gulf Lloyds India's value of 10.02% is 40.4% above this benchmark. Historically, Gulf Lloyds India's own WACC % has ranged from 8.46 to 10.00 over the past decade. While the company's 10-year median is 8.46 vs. the industry median of 7.14, Gulf Lloyds India 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 Business Services company?
The median WACC % among Business Services companies is 7.14, based on 1,110 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. Gulf Lloyds India's current WACC % of 10.02% is 40.4% 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 Gulf Lloyds India and its competitors. For the Business Services industry, the median WACC % is 7.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gulf Lloyds India's current WACC % is 10.02%, which is 18% above median its own 10-year median of 8.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gulf Lloyds India stock overvalued right now?
Gulf Lloyds India (BOM:544834) has a current WACC % of 10.02%. The current WACC % is 10.02%, which is 18% above median its 10-year median of 8.46 and 40.4% above the Business Services industry median of 7.14. Gulf Lloyds India's overall GF Score™ is 15/100 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 Gulf Lloyds India (BOM:544834), the current WACC % is 10.02% as of Aug. 31, 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.

Gulf Lloyds India Business Description

Address Drive in Road, Thaltej Road, 910-909, Gala Empire, Opposite TV Tower, Ahmedabad, GJ, IND, 380054
Gulf Lloyds India Ltd is engaged in the business of Third Party Inspection Services. The company provides Third-Party Inspection, Auditing, Testing, Training and Certification services across various industries and regions. It serves the Government, Public and Private Sector Organizations involved in Onshore, Offshore & Marine activities. The company operates in only one segment. The majority of the company's revenue is derived from the provision of Inspection Services.
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