ICICI BankHAM:ICBA 79 WACC % is 16.39% as of Jun. 27, 2026, which is 5% above its 10-year median of 15.63. GuruFocus rates HAM:ICBA with a GF Score™ of 79/100 and a GF Value™ of €25.01 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,543 Banks companies, ICICI Bank ranks worse than 62.61% on this metric.
As of today (2026-06-27), ICICI Bank's weighted average cost of capital is 16.39%%. ICICI Bank's ROIC % is 0.00% (calculated using TTM income statement data).
ICICI Bank earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*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.
ICICI Bank (HAM:ICBA) 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, ICICI Bank's weighted average cost of capital is 16.39%%. ICICI Bank's ROIC % is 0.00% (calculated using TTM income statement data).
ICICI Bank earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*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 quarterly 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 quarterly average debt to get the simplified cost of debt.
Related Terms
ICICI Bank WACC % Historical Data
* Premium members only.
The historical data trend for ICICI Bank'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 Banks - Regional subindustry, ICICI Bank'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.
ICICI Bank WACC % vs Banks Industry
For the Banks industry and Financial Services sector, ICICI Bank's WACC % distribution charts can be found below:
* The bar in red indicates where ICICI Bank'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, ICICI Bank's market capitalization (E) is €88582.104 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 quarterly average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, ICICI Bank's latest one-year quarterly average Book Value of Debt (D) is €21043.6492 Mil.
a) weight of equity = E / (E + D) = 88582.104 / (88582.104 + 21043.6492) = 0.808
b) weight of debt = D / (E + D) = 21043.6492 / (88582.104 + 21043.6492) = 0.192
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. ICICI Bank'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 quarterly average debt to get the simplified cost of debt.
As of Mar. 2026, ICICI Bank's interest expense (positive number) was €8584.505 Mil. Its total Book Value of Debt (D) is €21043.6492 Mil.
Cost of Debt = 8584.505 / 21043.6492 = 40.7938%.
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 = 1868.999 / 7449.745 = 25.09%.
ICICI Bank'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)
=
0.808
*
13.02%
+
0.192
*
40.7938%
*
(1 - 25.09%)
=
16.39%
* 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.
ICICI Bank (HAM:ICBA) has a WACC % of 16.39% as of Jun. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on ICICI Bank and its competitors. This is near median its historical median of 15.63. Over the past decade, ICICI Bank's WACC % has ranged from 7.35 to 16.61. According to the industry distribution chart, ICICI Bank ranks #966 out of 1543 companies in the Banks industry, placing it in the top 62.6%.
Is ICICI Bank's WACC % too high?
ICICI Bank's current WACC % of 16.39% is near median its 10-year median of 15.63. Over the past 10 years, this metric has ranged from a low of 7.35 to a high of 16.61. The Banks industry median WACC % is 13.20. ICICI Bank's value of 16.39% is 24.2% above this industry median. Based on the distribution chart, ICICI Bank ranks #966 out of 1543 companies in the Banks industry, which is below the industry midpoint. Overall, ICICI Bank has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ICICI Bank's WACC % compare to PNC?
According to the Banks industry distribution chart, ICICI Bank ranks #966 out of 1543 companies for WACC %. This places ICICI Bank in the lower half of its industry. The industry median WACC % is 13.20. ICICI Bank's value of 16.39% is 24.2% above this benchmark. Historically, ICICI Bank's own WACC % has ranged from 7.35 to 16.61 over the past decade. While the company's 10-year median is 15.63 vs. the industry median of 13.20, ICICI Bank 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 Banks company?
The median WACC % among Banks companies is 13.20, based on 1,543 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. ICICI Bank's current WACC % of 16.39% is 24.2% 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 ICICI Bank and its competitors. For the Banks industry, the median WACC % is 13.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ICICI Bank's current WACC % is 16.39%, which is near median its own 10-year median of 15.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ICICI Bank stock overvalued right now?
Based on GuruFocus' analysis, ICICI Bank (HAM:ICBA) is currently considered Fairly Valued. The stock's GF Value™ is €25.01, compared to a current price of €24.70 — trading 1.2% below its estimated fair value. The current WACC % is 16.39%, which is near median its 10-year median of 15.63 and 24.2% above the Banks industry median of 13.20. ICICI Bank's overall GF Score™ is 79/100 with 3 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 ICICI Bank (HAM:ICBA), the current WACC % is 16.39% as of Jun. 27, 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 ICICI Bank (HAM:ICBA) Overvalued in 2026?
Based on GuruFocus' analysis, ICICI Bank stock appears to be undervalued.
The current stock price of €24.70 is trading 1.2% below its estimated GF Value™ of €25.01.
GuruFocus considers ICICI Bank to be Fairly Valued.
Key valuation signals for HAM:ICBA:
WACC %: 16.39% (near median its 10-year median of 15.63)
GF Value™: €25.01 vs. price of €24.70 (1.2% below fair value)
Industry Position: 24.2% above the Banks median (#966 of 1543)
No single metric tells the full story. See the HAM:ICBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ICICI Bank Ltd provides banking services. The company's operating segments include Retail Banking; Wholesale Banking; Treasury, Life insurance, Other Banking Business, and Others. The company generates maximum revenue from the Retail Banking segment which includes exposures of the Bank, which satisfy the four qualifying criteria of a regulatory retail portfolio as stipulated by RBI guidelines on the Basel III framework as well as includes income from credit cards, debit cards, third party product distribution, and the associated costs. Geographical segments include Domestic operations and Foreign operations. The company generates the majority of its revenue from the domestic operations.
79GF Score
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