Azad EngineeringNSE:AZAD +4.53%53 WACC % is 12.86% as of Jul. 07, 2026, which is 2% above its 10-year median of 12.61. GuruFocus rates NSE:AZAD with a GF Score™ of 53/100. The stock has 9 warning signs investors should review. Among 3,082 Industrial Products companies, Azad Engineering ranks worse than 79.33% on this metric.
As of today (2026-07-07), Azad Engineering's weighted average cost of capital is 12.86%%. Azad Engineering's ROIC % is 7.23% (calculated using TTM income statement data).
Azad Engineering 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.
Azad Engineering (NSE:AZAD) 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, Azad Engineering's weighted average cost of capital is 12.86%%. Azad Engineering's ROIC % is 7.23% (calculated using TTM income statement data).
Azad Engineering 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
Azad Engineering WACC % Historical Data
* Premium members only.
The historical data trend for Azad Engineering'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 Specialty Industrial Machinery subindustry, Azad Engineering'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.
Azad Engineering WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Azad Engineering's WACC % distribution charts can be found below:
* The bar in red indicates where Azad Engineering'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, Azad Engineering's market capitalization (E) is ₹145082.886 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, Azad Engineering's latest one-year quarterly average Book Value of Debt (D) is ₹3500.5667 Mil.
a) weight of equity = E / (E + D) = 145082.886 / (145082.886 + 3500.5667) = 0.9764
b) weight of debt = D / (E + D) = 3500.5667 / (145082.886 + 3500.5667) = 0.0236
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. Azad Engineering'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, Azad Engineering's interest expense (positive number) was ₹308.19 Mil. Its total Book Value of Debt (D) is ₹3500.5667 Mil.
Cost of Debt = 308.19 / 3500.5667 = 8.804%.
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 = 537.43 / 1873.06 = 28.69%.
Azad Engineering'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)
=
0.9764
*
13.02%
+
0.0236
*
8.804%
*
(1 - 28.69%)
=
12.86%
* 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.
Azad Engineering (NSE:AZAD) has a WACC % of 12.86% as of Jul. 07, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Azad Engineering and its competitors. This is near median its historical median of 12.61. According to the industry distribution chart, Azad Engineering ranks #2445 out of 3082 companies in the Industrial Products industry, placing it in the top 79.3%.
Is Azad Engineering's WACC % too high?
Azad Engineering's current WACC % of 12.86% is near median its 10-year median of 12.61. The Industrial Products industry median WACC % is 9.67. Azad Engineering's value of 12.86% is 33.1% above this industry median. Based on the distribution chart, Azad Engineering ranks #2445 out of 3082 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Azad Engineering has a GF Score™ of 53/100, reflecting its overall financial health beyond just this single metric.
How does Azad Engineering's WACC % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Azad Engineering ranks #2445 out of 3082 companies for WACC %. This places Azad Engineering in the lower half of its industry. The industry median WACC % is 9.67. Azad Engineering's value of 12.86% is 33.1% above this benchmark. While the company's 10-year median is 12.61 vs. the industry median of 9.67, Azad Engineering 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 Industrial Products company?
The median WACC % among Industrial Products companies is 9.67, based on 3,082 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. Azad Engineering's current WACC % of 12.86% is 33.1% 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 Azad Engineering and its competitors. For the Industrial Products industry, the median WACC % is 9.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Azad Engineering's current WACC % is 12.86%, which is near median its own 10-year median of 12.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Azad Engineering stock overvalued right now?
Azad Engineering (NSE:AZAD) has a current WACC % of 12.86%. The current WACC % is 12.86%, which is near median its 10-year median of 12.61 and 33.1% above the Industrial Products industry median of 9.67. Azad Engineering's overall GF Score™ is 53/100 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 Azad Engineering (NSE:AZAD), the current WACC % is 12.86% as of Jul. 07, 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.
Azad Engineering Ltd is an Original Equipment Manufacturer (OEM) and national defence agencies across power generation, aerospace, defence, and oil & gas. It delivers complex, high-precision components with uncompromising reliability and has earned the trust of industry leaders, including GE Vernova, Mitsubishi Heavy Industries, Rolls-Royce, Honeywell Aerospace, Siemens Energy, Eaton, Baker Hughes, and others. The company's products include 3D rotating airfoil portions of turbine engines and other key products for combustion, hydraulics, flight-controls, propulsion, and actuation which power defence and civil aircrafts, spaceships, defence missiles, nuclear power, hydrogen, gas power, oil, and thermal power. Geographically, the group generates a majority of its revenue from outside India.
53GF Score
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