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As of today (2026-09-03), Emkay Taps and Cutting Tools's weighted average cost of capital is 12.99%%. Emkay Taps and Cutting Tools's ROIC % is -0.39% (calculated using TTM income statement data).
Emkay Taps and Cutting Tools 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.
Emkay Taps and Cutting Tools (NSE:EMKAYTOOLS) 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, Emkay Taps and Cutting Tools's weighted average cost of capital is 12.99%%. Emkay Taps and Cutting Tools's ROIC % is -0.39% (calculated using TTM income statement data).
Emkay Taps and Cutting Tools 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 semi-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 TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Emkay Taps and Cutting Tools WACC % Historical Data
* 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.
NSE:EMKAYTOOLS vs SNA, RBC, LECO: WACC % Comparison
For the Tools & Accessories subindustry, Emkay Taps and Cutting Tools'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.
Emkay Taps and Cutting Tools WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Emkay Taps and Cutting Tools's WACC % distribution charts can be found below:
* The bar in red indicates where Emkay Taps and Cutting Tools'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, Emkay Taps and Cutting Tools's market capitalization (E) is ₹981.760 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 semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Emkay Taps and Cutting Tools's latest one-year semi-annual average Book Value of Debt (D) is ₹39.961 Mil.
a) weight of equity = E / (E + D) = 981.760 / (981.760 + 39.961) = 0.9609
b) weight of debt = D / (E + D) = 39.961 / (981.760 + 39.961) = 0.0391
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 6.89%. 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. Emkay Taps and Cutting Tools's beta is 1.1043.
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 = 6.89% + 1.1043 * 6% = 13.5158%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Mar. 2026, Emkay Taps and Cutting Tools's interest expense (positive number) was ₹0.022 Mil. Its total Book Value of Debt (D) is ₹39.961 Mil.
Cost of Debt = 0.022 / 39.961 = 0.0551%.
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 = 23.498 / 139.048 = 16.9%.
* 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.
Emkay Taps and Cutting Tools (NSE:EMKAYTOOLS) has a WACC % of 12.99% as of Sep. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Emkay Taps and Cutting Tools and its competitors. This is near median its historical median of 11.98. Over the past decade, Emkay Taps and Cutting Tools' WACC % has ranged from 8.05 to 13.27. According to the industry distribution chart, Emkay Taps and Cutting Tools ranks #2442 out of 3104 companies in the Industrial Products industry, placing it in the top 78.7%.
Is Emkay Taps and Cutting Tools' WACC % too high?
Emkay Taps and Cutting Tools' current WACC % of 12.99% is near median its 10-year median of 11.98. Over the past 10 years, this metric has ranged from a low of 8.05 to a high of 13.27. The Industrial Products industry median WACC % is 9.83. Emkay Taps and Cutting Tools' value of 12.99% is 32.1% above this industry median. Based on the distribution chart, Emkay Taps and Cutting Tools ranks #2442 out of 3104 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Emkay Taps and Cutting Tools has a GF Score™ of 61/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Emkay Taps and Cutting Tools' WACC % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Emkay Taps and Cutting Tools ranks #2442 out of 3104 companies for WACC %. This places Emkay Taps and Cutting Tools in the lower half of its industry. The industry median WACC % is 9.83. Emkay Taps and Cutting Tools' value of 12.99% is 32.1% above this benchmark. Historically, Emkay Taps and Cutting Tools' own WACC % has ranged from 8.05 to 13.27 over the past decade. While the company's 10-year median is 11.98 vs. the industry median of 9.83, Emkay Taps and Cutting Tools 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 9.83, based on 3,104 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. Emkay Taps and Cutting Tools's current WACC % of 12.99% is 32.1% 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 Emkay Taps and Cutting Tools and its competitors. For the Industrial Products industry, the median WACC % is 9.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emkay Taps and Cutting Tools's current WACC % is 12.99%, which is near median its own 10-year median of 11.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emkay Taps and Cutting Tools stock overvalued right now?
Based on GuruFocus' analysis, Emkay Taps and Cutting Tools (NSE:EMKAYTOOLS) is currently considered Possible Value Trap. The stock's GF Value™ is ₹153.45, compared to a current price of ₹92.00 — trading 40% below its estimated fair value. The current WACC % is 12.99%, which is near median its 10-year median of 11.98 and 32.1% above the Industrial Products industry median of 9.83. Emkay Taps and Cutting Tools' overall GF Score™ is 61/100 with 2 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 Emkay Taps and Cutting Tools (NSE:EMKAYTOOLS), the current WACC % is 12.99% as of Sep. 03, 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 Emkay Taps and Cutting Tools (NSE:EMKAYTOOLS) Overvalued in 2026?
Based on GuruFocus' analysis, Emkay Taps and Cutting Tools stock appears to be undervalued.
The current stock price of ₹92.00 is trading 40% below its estimated GF Value™ of ₹153.45.
GuruFocus considers Emkay Taps and Cutting Tools to be Possible Value Trap.
Key valuation signals for NSE:EMKAYTOOLS:
WACC %: 12.99% (near median its 10-year median of 11.98)
GF Value™: ₹153.45 vs. price of ₹92.00 (40% below fair value)
Industry Position: 32.1% above the Industrial Products median (#2442 of 3104)
No single metric tells the full story. See the NSE:EMKAYTOOLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Emkay Taps and Cutting Tools Ltd is engaged in manufacturing and selling taps and cutting tools. The company operates two main segments: the manufacturing of taps and cutting tools, and the production of power through windmills. The majority of its revenue is generated from the tools segment. It runs two wind farm projects located in Shivapura Kavalu Village, Belur Taluka, Hassan District, Karnataka, and Kita & Ugawa, Jaisalmer District, Rajasthan.
61GF Score
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