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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.
Advance AgrolifeNSE:ADVANCE -0.49%17 WACC % is 12.35% as of Jul. 21, 2026, which is 28% above its 10-year median of 9.67. GuruFocus rates NSE:ADVANCE with a GF Score™ of 17/100. The stock has 5 warning signs investors should review. Among 264 Agriculture companies, Advance Agrolife ranks worse than 76.52% on this metric.
As of today (2026-07-21), Advance Agrolife's weighted average cost of capital is 12.35%%. Advance Agrolife's ROIC % is 11.62% (calculated using TTM income statement data).
Advance Agrolife 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.
Advance Agrolife (NSE:ADVANCE) 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, Advance Agrolife's weighted average cost of capital is 12.35%%. Advance Agrolife's ROIC % is 11.62% (calculated using TTM income statement data).
Advance Agrolife 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
Advance Agrolife WACC % Historical Data
* Premium members only.
The historical data trend for Advance Agrolife'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 Agricultural Inputs subindustry, Advance Agrolife'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.
Advance Agrolife WACC % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Advance Agrolife's WACC % distribution charts can be found below:
* The bar in red indicates where Advance Agrolife'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, Advance Agrolife's market capitalization (E) is ₹7270.715 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, Advance Agrolife's latest one-year quarterly average Book Value of Debt (D) is ₹878.9033 Mil.
a) weight of equity = E / (E + D) = 7270.715 / (7270.715 + 878.9033) = 0.8922
b) weight of debt = D / (E + D) = 878.9033 / (7270.715 + 878.9033) = 0.1078
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. Advance Agrolife'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, Advance Agrolife's interest expense (positive number) was ₹80.6933 Mil. Its total Book Value of Debt (D) is ₹878.9033 Mil.
Cost of Debt = 80.6933 / 878.9033 = 9.1811%.
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 = 121.8133 / 473.04 = 25.75%.
Advance Agrolife'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)
=
0.8922
*
13.02%
+
0.1078
*
9.1811%
*
(1 - 25.75%)
=
12.35%
* 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.
Advance Agrolife (NSE:ADVANCE) has a WACC % of 12.35% as of Jul. 21, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Advance Agrolife and its competitors. This is 28% above median its historical median of 9.67. Over the past decade, Advance Agrolife's WACC % has ranged from 7.32 to 12.35. According to the industry distribution chart, Advance Agrolife ranks #202 out of 264 companies in the Agriculture industry, placing it in the top 76.5%.
Is Advance Agrolife's WACC % too high?
Advance Agrolife's current WACC % of 12.35% is 28% above median its 10-year median of 9.67. Over the past 10 years, this metric has ranged from a low of 7.32 to a high of 12.35. The Agriculture industry median WACC % is 9.87. Advance Agrolife's value of 12.35% is 25.1% above this industry median. Based on the distribution chart, Advance Agrolife ranks #202 out of 264 companies in the Agriculture industry, which is in the bottom quartile relative to peers. Overall, Advance Agrolife has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Advance Agrolife's WACC % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Advance Agrolife ranks #202 out of 264 companies for WACC %. This places Advance Agrolife in the lower half of its industry. The industry median WACC % is 9.87. Advance Agrolife's value of 12.35% is 25.1% above this benchmark. Historically, Advance Agrolife's own WACC % has ranged from 7.32 to 12.35 over the past decade. While the company's 10-year median is 9.67 vs. the industry median of 9.87, Advance Agrolife 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 an Agriculture company?
The median WACC % among Agriculture companies is 9.87, based on 264 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. Advance Agrolife's current WACC % of 12.35% is 25.1% 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 Advance Agrolife and its competitors. For the Agriculture industry, the median WACC % is 9.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advance Agrolife's current WACC % is 12.35%, which is 28% above median its own 10-year median of 9.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advance Agrolife stock overvalued right now?
Advance Agrolife (NSE:ADVANCE) has a current WACC % of 12.35%. The current WACC % is 12.35%, which is 28% above median its 10-year median of 9.67 and 25.1% above the Agriculture industry median of 9.87. Advance Agrolife's overall GF Score™ is 17/100 with 5 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 Advance Agrolife (NSE:ADVANCE), the current WACC % is 12.35% as of Jul. 21, 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.
Advance Agrolife Ltd is engaged in the manufacturing and distribution of a broad spectrum of technical and formulated grade of agrochemicals. Its products include insecticides, fungicides, herbicides, micronutrient fertilizers, formulation-grade products, technical-grade products, bio-fertilizers, and plant growth regulators. The company operates in manufacturing and trading as a single business segment based on its products and has one reportable segment, namely Pesticides Products.
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