Dhaval Packaging (BOM:544854) WACC %:12.16% (As of Aug. 31, 2026) — 162% Above Median

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Director of Data and Quant Analytics at GuruFocus
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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

BOM:544854 Dhaval Packaging Ltd BOM:544854
17 GF Score
Price ₹120.53
! 1 Warning Sign
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What is Dhaval Packaging WACC %?

Dhaval Packaging BOM:544854 -1.82% 17 WACC % is 12.16% as of Aug. 31, 2026, which is 162% above its 10-year median of 4.65. GuruFocus rates BOM:544854 with a GF Score™ of 17/100. The stock has 1 warning sign investors should review. Among 421 Packaging & Containers companies, Dhaval Packaging ranks worse than 84.56% on this metric.

As of today (2026-08-31), Dhaval Packaging's weighted average cost of capital is 12.16%%. Dhaval Packaging's ROIC % is 19.94% (calculated using TTM income statement data). Dhaval Packaging 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.


Dhaval Packaging  (BOM:544854) 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, Dhaval Packaging's weighted average cost of capital is 12.16%%. Dhaval Packaging's ROIC % is 19.94% (calculated using TTM income statement data). Dhaval Packaging 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

Dhaval Packaging WACC % Historical Data

* Premium members only.

The historical data trend for Dhaval Packaging'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.

Dhaval Packaging WACC % Chart

Dhaval Packaging Annual Data
Trend Mar23 Mar24 Mar25 Mar26
WACC %
0.00 0.00 0.00 0.00

Dhaval Packaging Semi-Annual Data
Mar23 Mar24 Mar25 Mar26
WACC % 0.00 0.00 0.00 0.00

BOM:544854 vs SW, AMCR, PKG: WACC % Comparison

For the Packaging & Containers subindustry, Dhaval Packaging'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.


Dhaval Packaging WACC % vs Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Dhaval Packaging's WACC % distribution charts can be found below:

* The bar in red indicates where Dhaval Packaging's WACC % falls into.


BOM:544854
17GF Score
Dhaval Packaging Ltd BOM:544854
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Dhaval Packaging 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, Dhaval Packaging's market capitalization (E) is ₹1655.697 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. 2026, Dhaval Packaging's latest one-year annual average Book Value of Debt (D) is ₹203.419 Mil.
a) weight of equity = E / (E + D) = 1655.697 / (1655.697 + 203.419) = 0.8906
b) weight of debt = D / (E + D) = 203.419 / (1655.697 + 203.419) = 0.1094

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 6.89%. 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. Dhaval Packaging'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 = 6.89% + 1 * 6% = 12.89%

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. 2026, Dhaval Packaging's interest expense (positive number) was ₹16.74 Mil. Its total Book Value of Debt (D) is ₹203.419 Mil.
Cost of Debt = 16.74 / 203.419 = 8.2293%.

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 = 26.792 / 107.181 = 25%.

Dhaval Packaging'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)
=0.8906*12.89%+0.1094*8.2293%*(1 - 25%)
=12.16%

* 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 12.16% mean?
Dhaval Packaging (BOM:544854) has a WACC % of 12.16% 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 Dhaval Packaging and its competitors. This is 162% above median its historical median of 4.65. Over the past decade, Dhaval Packaging's WACC % has ranged from 3.46 to 12.16. According to the industry distribution chart, Dhaval Packaging ranks #356 out of 421 companies in the Packaging & Containers industry, placing it in the top 84.6%.
Is Dhaval Packaging's WACC % too high?
Dhaval Packaging's current WACC % of 12.16% is 162% above median its 10-year median of 4.65. Over the past 10 years, this metric has ranged from a low of 3.46 to a high of 12.16. The Packaging & Containers industry median WACC % is 7.48. Dhaval Packaging's value of 12.16% is 62.6% above this industry median. Based on the distribution chart, Dhaval Packaging ranks #356 out of 421 companies in the Packaging & Containers industry, which is in the bottom quartile relative to peers. Overall, Dhaval Packaging has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Dhaval Packaging's WACC % compare to SW and AMCR?
According to the Packaging & Containers industry distribution chart, Dhaval Packaging ranks #356 out of 421 companies for WACC %. This places Dhaval Packaging in the lower half of its industry. The industry median WACC % is 7.48. Dhaval Packaging's value of 12.16% is 62.6% above this benchmark. Historically, Dhaval Packaging's own WACC % has ranged from 3.46 to 12.16 over the past decade. While the company's 10-year median is 4.65 vs. the industry median of 7.48, Dhaval Packaging 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 Packaging & Containers company?
The median WACC % among Packaging & Containers companies is 7.48, based on 421 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. Dhaval Packaging's current WACC % of 12.16% is 62.6% 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 Dhaval Packaging and its competitors. For the Packaging & Containers industry, the median WACC % is 7.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dhaval Packaging's current WACC % is 12.16%, which is 162% above median its own 10-year median of 4.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dhaval Packaging stock overvalued right now?
Dhaval Packaging (BOM:544854) has a current WACC % of 12.16%. The current WACC % is 12.16%, which is 162% above median its 10-year median of 4.65 and 62.6% above the Packaging & Containers industry median of 7.48. Dhaval Packaging's 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 Dhaval Packaging (BOM:544854), the current WACC % is 12.16% 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.

Dhaval Packaging Business Description

Address Shilaj Cross Road, S.P. Ring Road, Office No. D/1214, Swati Crimson & Clover, Near Shilaj Circle, Shilaj, Ahmedabad, GJ, IND, 380059
Dhaval Packaging Ltd is engaged in the business of manufacturing and trading of plastic packaging materials, pipe protection material and related products. It caters to industrial clients across various sectors requiring customized packaging solutions. The company's product portfolio is organized into two categories, which also represent its primary reportable segments: 1. In-Mold Labelling (IML) Containers, 2. SAW Pipe Protection Plastic Caps (End Caps). The majority of the company's revenue is derived from the IML Containers segment. Geographically, it operates predominantly in India.
17GF Score

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