Aditya Birla CapitalNSE:ABCAPITAL -1.01%73 WACC % is 9.82% as of Jun. 27, 2026, which is 14% above its 10-year median of 8.64. GuruFocus rates NSE:ABCAPITAL with a GF Score™ of 73/100 and a GF Value™ of ₹244.81 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 583 Diversified Financial Services companies, Aditya Birla Capital ranks better than 55.75% on this metric.
As of today (2026-06-27), Aditya Birla Capital's weighted average cost of capital is 9.82%%. Aditya Birla Capital's ROIC % is 6.91% (calculated using TTM income statement data).
Aditya Birla Capital 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.
Aditya Birla Capital (NSE:ABCAPITAL) 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, Aditya Birla Capital's weighted average cost of capital is 9.82%%. Aditya Birla Capital's ROIC % is 6.91% (calculated using TTM income statement data).
Aditya Birla Capital 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 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.
* 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 Financial Conglomerates subindustry, Aditya Birla Capital'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.
Aditya Birla Capital WACC % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Aditya Birla Capital's WACC % distribution charts can be found below:
* The bar in red indicates where Aditya Birla Capital'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, Aditya Birla Capital's market capitalization (E) is ₹1067707.560 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, Aditya Birla Capital's latest one-year quarterly average Book Value of Debt (D) is ₹1586273.6333 Mil.
a) weight of equity = E / (E + D) = 1067707.560 / (1067707.560 + 1586273.6333) = 0.4023
b) weight of debt = D / (E + D) = 1586273.6333 / (1067707.560 + 1586273.6333) = 0.5977
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. Aditya Birla Capital's beta is 1.5675.
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% + 1.5675 * 6% = 16.425%
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, Aditya Birla Capital's interest expense (positive number) was ₹116382.2 Mil. Its total Book Value of Debt (D) is ₹1586273.6333 Mil.
Cost of Debt = 116382.2 / 1586273.6333 = 7.3368%.
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 = 14074.4 / 52712.5 = 26.7%.
Aditya Birla Capital'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)
=
0.4023
*
16.425%
+
0.5977
*
7.3368%
*
(1 - 26.7%)
=
9.82%
* 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.
Aditya Birla Capital (NSE:ABCAPITAL) has a WACC % of 9.82% 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 Aditya Birla Capital and its competitors. This is 14% above median its historical median of 8.64. Over the past decade, Aditya Birla Capital's WACC % has ranged from 5.68 to 9.81. According to the industry distribution chart, Aditya Birla Capital ranks #258 out of 583 companies in the Diversified Financial Services industry, placing it in the top 44.3%.
Is Aditya Birla Capital's WACC % too high?
Aditya Birla Capital's current WACC % of 9.82% is 14% above median its 10-year median of 8.64. Over the past 10 years, this metric has ranged from a low of 5.68 to a high of 9.81. The Diversified Financial Services industry median WACC % is 10.37. Aditya Birla Capital's value of 9.82% is 5.3% below this industry median. Based on the distribution chart, Aditya Birla Capital ranks #258 out of 583 companies in the Diversified Financial Services industry, which is above the industry midpoint. Overall, Aditya Birla Capital has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aditya Birla Capital's WACC % compare to FRHC and VOYA?
According to the Diversified Financial Services industry distribution chart, Aditya Birla Capital ranks #258 out of 583 companies for WACC %. This puts Aditya Birla Capital in the upper half of its industry. The industry median WACC % is 10.37. Aditya Birla Capital's value of 9.82% is 5.3% below this benchmark. Historically, Aditya Birla Capital's own WACC % has ranged from 5.68 to 9.81 over the past decade. While the company's 10-year median is 8.64 vs. the industry median of 10.37, Aditya Birla Capital 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 Diversified Financial Services company?
The median WACC % among Diversified Financial Services companies is 10.37, based on 583 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. Aditya Birla Capital's current WACC % of 9.82% is 5.3% 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 Aditya Birla Capital and its competitors. For the Diversified Financial Services industry, the median WACC % is 10.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aditya Birla Capital's current WACC % is 9.82%, which is 14% above median its own 10-year median of 8.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aditya Birla Capital stock overvalued right now?
Based on GuruFocus' analysis, Aditya Birla Capital (NSE:ABCAPITAL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹244.81, compared to a current price of ₹390.80 — trading 59.6% above its estimated fair value. The current WACC % is 9.82%, which is 14% above median its 10-year median of 8.64 and 5.3% below the Diversified Financial Services industry median of 10.37. Aditya Birla Capital's overall GF Score™ is 73/100 with 9 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 Aditya Birla Capital (NSE:ABCAPITAL), the current WACC % is 9.82% 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 Aditya Birla Capital (NSE:ABCAPITAL) Overvalued in 2026?
Based on GuruFocus' analysis, Aditya Birla Capital stock appears to be overvalued.
The current stock price of ₹390.80 is trading 59.6% above its estimated GF Value™ of ₹244.81.
GuruFocus considers Aditya Birla Capital to be Significantly Overvalued.
Key valuation signals for NSE:ABCAPITAL:
WACC %: 9.82% (14% above median its 10-year median of 8.64)
GF Value™: ₹244.81 vs. price of ₹390.80 (59.6% above fair value)
Industry Position: 5.3% below the Diversified Financial Services median (#258 of 583)
No single metric tells the full story. See the NSE:ABCAPITAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aditya Birla Capital Ltd is a financial service provider. The company's products include Non-Bank Financial Services, Housing Finance, Life Insurance, Asset Management, General Insurance Broking, Stock and Securities Broking, Health Insurance and Other Financial Services. Its operating segments consist of Lending, and Investing and Others. The Lending segment consists of Loans (personal, business, etc.), loan against property, structured finance, working capital loans, wealth management, distribution of financial products, etc. The Investing and Others segment includes investments in Group companies Geographically, it derives a majority of its revenue from India.
73GF Score
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