Gujarat Mineral DevelopmentNSE:GMDCLTD -0.73%64 WACC % is 11.93% as of Jun. 24, 2026, which is 24% below its 10-year median of 15.62. GuruFocus rates NSE:GMDCLTD with a GF Score™ of 64/100 and a GF Value™ of ₹372.56 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 184 Other Energy Sources companies, Gujarat Mineral Development ranks worse than 82.61% on this metric.
As of today (2026-06-24), Gujarat Mineral Development's weighted average cost of capital is 11.93%%. Gujarat Mineral Development's ROIC % is 3.75% (calculated using TTM income statement data).
Gujarat Mineral Development 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.
Gujarat Mineral Development (NSE:GMDCLTD) 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, Gujarat Mineral Development's weighted average cost of capital is 11.93%%. Gujarat Mineral Development's ROIC % is 3.75% (calculated using TTM income statement data).
Gujarat Mineral Development 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.
Related Terms
Gujarat Mineral Development 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.
Gujarat Mineral Development WACC % Competitor Comparison
For the Thermal Coal subindustry, Gujarat Mineral Development'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.
Gujarat Mineral Development WACC % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Gujarat Mineral Development's WACC % distribution charts can be found below:
* The bar in red indicates where Gujarat Mineral Development'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, Gujarat Mineral Development's market capitalization (E) is ₹189925.500 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, Gujarat Mineral Development's latest one-year quarterly average Book Value of Debt (D) is ₹2403.9333 Mil.
a) weight of equity = E / (E + D) = 189925.500 / (189925.500 + 2403.9333) = 0.9875
b) weight of debt = D / (E + D) = 2403.9333 / (189925.500 + 2403.9333) = 0.0125
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. Gujarat Mineral Development's beta is 0.8380.
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% + 0.8380 * 6% = 12.048%
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, Gujarat Mineral Development's interest expense (positive number) was ₹70.5 Mil. Its total Book Value of Debt (D) is ₹2403.9333 Mil.
Cost of Debt = 70.5 / 2403.9333 = 2.9327%.
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 = 3110.7 / 12681.2 = 24.53%.
* 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.
Gujarat Mineral Development (NSE:GMDCLTD) has a WACC % of 11.93% as of Jun. 24, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Gujarat Mineral Development and its competitors. This is 24% below median its historical median of 15.62. Over the past decade, Gujarat Mineral Development's WACC % has ranged from 10.43 to 17.48. According to the industry distribution chart, Gujarat Mineral Development ranks #152 out of 184 companies in the Other Energy Sources industry, placing it in the top 82.6%.
Is Gujarat Mineral Development's WACC % too high?
Gujarat Mineral Development's current WACC % of 11.93% is 24% below median its 10-year median of 15.62. Over the past 10 years, this metric has ranged from a low of 10.43 to a high of 17.48. The Other Energy Sources industry median WACC % is 7.42. Gujarat Mineral Development's value of 11.93% is 60.8% above this industry median. Based on the distribution chart, Gujarat Mineral Development ranks #152 out of 184 companies in the Other Energy Sources industry, which is in the bottom quartile relative to peers. Overall, Gujarat Mineral Development has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Gujarat Mineral Development's WACC % compare to competitors?
According to the Other Energy Sources industry distribution chart, Gujarat Mineral Development ranks #152 out of 184 companies for WACC %. This places Gujarat Mineral Development in the lower half of its industry. The industry median WACC % is 7.42. Gujarat Mineral Development's value of 11.93% is 60.8% above this benchmark. Historically, Gujarat Mineral Development's own WACC % has ranged from 10.43 to 17.48 over the past decade. While the company's 10-year median is 15.62 vs. the industry median of 7.42, Gujarat Mineral Development 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 Other Energy Sources company?
The median WACC % among Other Energy Sources companies is 7.42, based on 184 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. Gujarat Mineral Development's current WACC % of 11.93% is 60.8% 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 Gujarat Mineral Development and its competitors. For the Other Energy Sources industry, the median WACC % is 7.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gujarat Mineral Development's current WACC % is 11.93%, which is 24% below median its own 10-year median of 15.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gujarat Mineral Development stock overvalued right now?
Based on GuruFocus' analysis, Gujarat Mineral Development (NSE:GMDCLTD) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹372.56, compared to a current price of ₹597.00 — trading 60.2% above its estimated fair value. The current WACC % is 11.93%, which is 24% below median its 10-year median of 15.62 and 60.8% above the Other Energy Sources industry median of 7.42. Gujarat Mineral Development's overall GF Score™ is 64/100 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 Gujarat Mineral Development (NSE:GMDCLTD), the current WACC % is 11.93% as of Jun. 24, 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 Gujarat Mineral Development (NSE:GMDCLTD) Overvalued in 2026?
Based on GuruFocus' analysis, Gujarat Mineral Development stock appears to be overvalued.
The current stock price of ₹597.00 is trading 60.2% above its estimated GF Value™ of ₹372.56.
GuruFocus considers Gujarat Mineral Development to be Significantly Overvalued.
Key valuation signals for NSE:GMDCLTD:
WACC %: 11.93% (24% below median its 10-year median of 15.62)
GF Value™: ₹372.56 vs. price of ₹597.00 (60.2% above fair value)
Industry Position: 60.8% above the Other Energy Sources median (#152 of 184)
No single metric tells the full story. See the NSE:GMDCLTD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gujarat Mineral Development Corp Ltd is a mineral resource mining company. Its operations include lignite mining, bauxite mining, fluorspar mining, manganese mining, and power generation. The company's segments include Mining and Power. The majority of its revenue is derived from the Mining segment which engages in the mining and sale of manganese, bauxite, limestone, silica sand, and others. Geographically, the company operates only in India.
64GF Score
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