Bajaj Mobility AGFRA:PKTM -0.62%58 WACC % is 7.89% as of Jul. 01, 2026, which is 80% above its 10-year median of 4.39. GuruFocus rates FRA:PKTM with a GF Score™ of 58/100 and a GF Value™ of €11.59 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,345 Vehicles & Parts companies, Bajaj Mobility AG ranks worse than 73.38% on this metric.
As of today (2026-07-01), Bajaj Mobility AG's weighted average cost of capital is 7.89%%. Bajaj Mobility AG's ROIC % is -20.46% (calculated using TTM income statement data).
Bajaj Mobility AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
For a comprehensive WACC calculation, please access the WACC Calculator.
Bajaj Mobility AG (FRA:PKTM) 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, Bajaj Mobility AG's weighted average cost of capital is 7.89%%. Bajaj Mobility AG's ROIC % is -20.46% (calculated using TTM income statement data).
Bajaj Mobility AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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
Bajaj Mobility AG WACC % Historical Data
* Premium members only.
The historical data trend for Bajaj Mobility AG'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.
For the Auto Manufacturers subindustry, Bajaj Mobility AG'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.
Bajaj Mobility AG WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Bajaj Mobility AG's WACC % distribution charts can be found below:
* The bar in red indicates where Bajaj Mobility AG'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, Bajaj Mobility AG's market capitalization (E) is €653.625 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 Dec. 2025, Bajaj Mobility AG's latest one-year semi-annual average Book Value of Debt (D) is €1370.9005 Mil.
a) weight of equity = E / (E + D) = 653.625 / (653.625 + 1370.9005) = 0.3229
b) weight of debt = D / (E + D) = 1370.9005 / (653.625 + 1370.9005) = 0.6771
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 3.3033%. 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. Bajaj Mobility AG's beta is 1.5916.
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 = 3.3033% + 1.5916 * 6% = 12.8529%
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 Dec. 2025, Bajaj Mobility AG's interest expense (positive number) was €85.116 Mil. Its total Book Value of Debt (D) is €1370.9005 Mil.
Cost of Debt = 85.116 / 1370.9005 = 6.2088%.
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 = 72.658 / 662.822 = 10.96%.
Bajaj Mobility AG'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)
=
0.3229
*
12.8529%
+
0.6771
*
6.2088%
*
(1 - 10.96%)
=
7.89%
* 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.
Bajaj Mobility AG (FRA:PKTM) has a WACC % of 7.89% as of Jul. 01, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Bajaj Mobility AG and its competitors. This is 80% above median its historical median of 4.39. According to the industry distribution chart, Bajaj Mobility AG ranks #987 out of 1345 companies in the Vehicles & Parts industry, placing it in the top 73.4%.
Is Bajaj Mobility AG's WACC % too high?
Bajaj Mobility AG's current WACC % of 7.89% is 80% above median its 10-year median of 4.39. The Vehicles & Parts industry median WACC % is 8.47. Bajaj Mobility AG's value of 7.89% is 6.8% below this industry median. Based on the distribution chart, Bajaj Mobility AG ranks #987 out of 1345 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Bajaj Mobility AG has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bajaj Mobility AG's WACC % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Bajaj Mobility AG ranks #987 out of 1345 companies for WACC %. This places Bajaj Mobility AG in the lower half of its industry. The industry median WACC % is 8.47. Bajaj Mobility AG's value of 7.89% is 6.8% below this benchmark. While the company's 10-year median is 4.39 vs. the industry median of 8.47, Bajaj Mobility AG has consistently been below 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 Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.47, based on 1,345 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. Bajaj Mobility AG's current WACC % of 7.89% is 6.8% below 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 Bajaj Mobility AG and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bajaj Mobility AG's current WACC % is 7.89%, which is 80% above median its own 10-year median of 4.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bajaj Mobility AG stock overvalued right now?
Based on GuruFocus' analysis, Bajaj Mobility AG (FRA:PKTM) is currently considered Significantly Overvalued. The stock's GF Value™ is €11.59, compared to a current price of €19.30 — trading 66.5% above its estimated fair value. The current WACC % is 7.89%, which is 80% above median its 10-year median of 4.39 and 6.8% below the Vehicles & Parts industry median of 8.47. Bajaj Mobility AG's overall GF Score™ is 58/100 with 11 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 Bajaj Mobility AG (FRA:PKTM), the current WACC % is 7.89% as of Jul. 01, 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.
Is Bajaj Mobility AG (FRA:PKTM) Overvalued in 2026?
Based on GuruFocus' analysis, Bajaj Mobility AG stock appears to be overvalued.
The current stock price of €19.30 is trading 66.5% above its estimated GF Value™ of €11.59.
GuruFocus considers Bajaj Mobility AG to be Significantly Overvalued.
Key valuation signals for FRA:PKTM:
WACC %: 7.89% (80% above median its 10-year median of 4.39)
GF Value™: €11.59 vs. price of €19.30 (66.5% above fair value)
Industry Position: 6.8% below the Vehicles & Parts median (#987 of 1345)
No single metric tells the full story. See the FRA:PKTM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bajaj Mobility AG is a manufacturer of premium motorcycles and two- and three-wheelers, bringing together performance-driven brands such as KTM, Husqvarna Motorcycles, and GASGAS, along with high-performance components under the WP brand. Focused on the premium segment, the company emphasizes innovation, engineering excellence, and brand positioning. Its Motorcycle segment, which generates the highest revenue, covers the development, production, and sale of motorcycles and components across international markets. The Bicycle segment, operated through PIERER New Mobility GmbH, includes brands such as Husqvarna E-Bicycles, GASGAS Bicycles, and FELT Bicycles, offering electric and conventional bikes. The company derives the majority of its revenue from Europe (excluding Austria).
58GF Score
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