Drone DestinationNSE:DRONE -0.97%54 WACC % is 18.75% as of Jul. 04, 2026, which is 125% above its 10-year median of 8.34. GuruFocus rates NSE:DRONE with a GF Score™ of 54/100 and a GF Value™ of ₹192.00 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 269 Education companies, Drone Destination ranks worse than 82.9% on this metric.
As of today (2026-07-04), Drone Destination's weighted average cost of capital is 18.75%%. Drone Destination's ROIC % is 3.14% (calculated using TTM income statement data).
Drone Destination 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.
Drone Destination (NSE:DRONE) 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, Drone Destination's weighted average cost of capital is 18.75%%. Drone Destination's ROIC % is 3.14% (calculated using TTM income statement data).
Drone Destination 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 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 annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
Related Terms
Drone Destination WACC % Historical Data
* Premium members only.
The historical data trend for Drone Destination'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 Education & Training Services subindustry, Drone Destination'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.
Drone Destination WACC % vs Education Industry
For the Education industry and Consumer Defensive sector, Drone Destination's WACC % distribution charts can be found below:
* The bar in red indicates where Drone Destination'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, Drone Destination's market capitalization (E) is ₹1000.400 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 annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Drone Destination's latest one-year annual average Book Value of Debt (D) is ₹198.0835 Mil.
a) weight of equity = E / (E + D) = 1000.400 / (1000.400 + 198.0835) = 0.8347
b) weight of debt = D / (E + D) = 198.0835 / (1000.400 + 198.0835) = 0.1653
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. Drone Destination's beta is 2.2911.
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% + 2.2911 * 6% = 20.7666%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Mar. 2026, Drone Destination's interest expense (positive number) was ₹29.115 Mil. Its total Book Value of Debt (D) is ₹198.0835 Mil.
Cost of Debt = 29.115 / 198.0835 = 14.6983%.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual 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 annual Tax Rate = 8.449 / 20.17 = 41.89%.
Drone Destination'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)
=
0.8347
*
20.7666%
+
0.1653
*
14.6983%
*
(1 - 41.89%)
=
18.75%
* 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.
Drone Destination (NSE:DRONE) has a WACC % of 18.75% as of Jul. 04, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Drone Destination and its competitors. This is 125% above median its historical median of 8.34. Over the past decade, Drone Destination's WACC % has ranged from 0.01 to 13.03. According to the industry distribution chart, Drone Destination ranks #223 out of 269 companies in the Education industry, placing it in the top 82.9%.
Is Drone Destination's WACC % too high?
Drone Destination's current WACC % of 18.75% is 125% above median its 10-year median of 8.34. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 13.03. The Education industry median WACC % is 7.94. Drone Destination's value of 18.75% is 136.1% above this industry median. Based on the distribution chart, Drone Destination ranks #223 out of 269 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Drone Destination has a GF Score™ of 54/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Drone Destination's WACC % compare to EDU and TAL?
According to the Education industry distribution chart, Drone Destination ranks #223 out of 269 companies for WACC %. This places Drone Destination in the lower half of its industry. The industry median WACC % is 7.94. Drone Destination's value of 18.75% is 136.1% above this benchmark. Historically, Drone Destination's own WACC % has ranged from 0.01 to 13.03 over the past decade. While the company's 10-year median is 8.34 vs. the industry median of 7.94, Drone Destination 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 Education company?
The median WACC % among Education companies is 7.94, based on 269 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. Drone Destination's current WACC % of 18.75% is 136.1% 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 Drone Destination and its competitors. For the Education industry, the median WACC % is 7.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Drone Destination's current WACC % is 18.75%, which is 125% above median its own 10-year median of 8.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Drone Destination stock overvalued right now?
Based on GuruFocus' analysis, Drone Destination (NSE:DRONE) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹192.00, compared to a current price of ₹41.00 — trading 78.6% below its estimated fair value. The current WACC % is 18.75%, which is 125% above median its 10-year median of 8.34 and 136.1% above the Education industry median of 7.94. Drone Destination's overall GF Score™ is 54/100 with 7 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 Drone Destination (NSE:DRONE), the current WACC % is 18.75% as of Jul. 04, 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 Drone Destination (NSE:DRONE) Overvalued in 2026?
Based on GuruFocus' analysis, Drone Destination stock appears to be undervalued.
The current stock price of ₹41.00 is trading 78.6% below its estimated GF Value™ of ₹192.00.
GuruFocus considers Drone Destination to be Significantly Undervalued.
Key valuation signals for NSE:DRONE:
WACC %: 18.75% (125% above median its 10-year median of 8.34)
GF Value™: ₹192.00 vs. price of ₹41.00 (78.6% below fair value)
Industry Position: 136.1% above the Education median (#223 of 269)
No single metric tells the full story. See the NSE:DRONE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressOffice. No 005B & 006, Ground Floor, NSIC Business Park, Software Technology Park, FB-05, Okhla Industrial Estate, Okhla Phase-III, South Delhi, New Delhi, IND, 110020
Drone Destination Ltd is a DGCA-authorized Remote Pilot Training Organization that has developed an integrated drone eco-system built around drone manufacturing, certified training, services, and renting a drone. The company operates a massive network of DGCA-certified Drone Pilot Training Programs. The company currently operates Drone Hubs at locations such as Gurugram, Dharamshala, Chandigarh, Gwalior, Ahmedabad, Bangalore, Coimbatore, Madurai, and IFFCO Phulpur.
54GF Score
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