Graphite IndiaNSE:GRAPHITE -0.02%81 WACC % is 14.67% as of Jul. 06, 2026, which is 12% below its 10-year median of 16.63. GuruFocus rates NSE:GRAPHITE with a GF Score™ of 81/100 and a GF Value™ of ₹578.80 (Fairly Valued). The stock has 2 warning signs investors should review. Among 3,080 Industrial Products companies, Graphite India ranks worse than 88.47% on this metric.
As of today (2026-07-06), Graphite India's weighted average cost of capital is 14.67%%. Graphite India's ROIC % is -2.16% (calculated using TTM income statement data).
Graphite India 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.
Graphite India (NSE:GRAPHITE) 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, Graphite India's weighted average cost of capital is 14.67%%. Graphite India's ROIC % is -2.16% (calculated using TTM income statement data).
Graphite India 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
Graphite India WACC % Historical Data
* Premium members only.
The historical data trend for Graphite India'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 Electrical Equipment & Parts subindustry, Graphite India'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.
Graphite India WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Graphite India's WACC % distribution charts can be found below:
* The bar in red indicates where Graphite India'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, Graphite India's market capitalization (E) is ₹122617.723 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, Graphite India's latest one-year quarterly average Book Value of Debt (D) is ₹2695.6 Mil.
a) weight of equity = E / (E + D) = 122617.723 / (122617.723 + 2695.6) = 0.9785
b) weight of debt = D / (E + D) = 2695.6 / (122617.723 + 2695.6) = 0.0215
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. Graphite India's beta is 1.3046.
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% + 1.3046 * 6% = 14.8476%
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, Graphite India's interest expense (positive number) was ₹250 Mil. Its total Book Value of Debt (D) is ₹2695.6 Mil.
Cost of Debt = 250 / 2695.6 = 9.2744%.
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 = 730 / 2440 = 29.92%.
Graphite India'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)
=
0.9785
*
14.8476%
+
0.0215
*
9.2744%
*
(1 - 29.92%)
=
14.67%
* 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.
Graphite India (NSE:GRAPHITE) has a WACC % of 14.67% as of Jul. 06, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Graphite India and its competitors. This is 12% below median its historical median of 16.63. Over the past decade, Graphite India's WACC % has ranged from 10.62 to 19.47. According to the industry distribution chart, Graphite India ranks #2725 out of 3080 companies in the Industrial Products industry, placing it in the top 88.5%.
Is Graphite India's WACC % too high?
Graphite India's current WACC % of 14.67% is 12% below median its 10-year median of 16.63. Over the past 10 years, this metric has ranged from a low of 10.62 to a high of 19.47. The Industrial Products industry median WACC % is 9.67. Graphite India's value of 14.67% is 51.8% above this industry median. Based on the distribution chart, Graphite India ranks #2725 out of 3080 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Graphite India has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Graphite India's WACC % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Graphite India ranks #2725 out of 3080 companies for WACC %. This places Graphite India in the lower half of its industry. The industry median WACC % is 9.67. Graphite India's value of 14.67% is 51.8% above this benchmark. Historically, Graphite India's own WACC % has ranged from 10.62 to 19.47 over the past decade. While the company's 10-year median is 16.63 vs. the industry median of 9.67, Graphite India 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 3,080 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. Graphite India's current WACC % of 14.67% is 51.8% 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 Graphite India 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. Graphite India's current WACC % is 14.67%, which is 12% below median its own 10-year median of 16.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Graphite India stock overvalued right now?
Based on GuruFocus' analysis, Graphite India (NSE:GRAPHITE) is currently considered Fairly Valued. The stock's GF Value™ is ₹578.80, compared to a current price of ₹627.80 — trading 8.5% above its estimated fair value. The current WACC % is 14.67%, which is 12% below median its 10-year median of 16.63 and 51.8% above the Industrial Products industry median of 9.67. Graphite India's overall GF Score™ is 81/100 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 Graphite India (NSE:GRAPHITE), the current WACC % is 14.67% as of Jul. 06, 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 Graphite India (NSE:GRAPHITE) Overvalued in 2026?
Based on GuruFocus' analysis, Graphite India stock appears to be overvalued.
The current stock price of ₹627.80 is trading 8.5% above its estimated GF Value™ of ₹578.80.
GuruFocus considers Graphite India to be Fairly Valued.
Key valuation signals for NSE:GRAPHITE:
WACC %: 14.67% (12% below median its 10-year median of 16.63)
GF Value™: ₹578.80 vs. price of ₹627.80 (8.5% above fair value)
Industry Position: 51.8% above the Industrial Products median (#2725 of 3080)
No single metric tells the full story. See the NSE:GRAPHITE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Graphite India Ltd is an industrial products manufacturer in India. It manufactures graphite electrodes and graphite-based products. Its segments are Graphite and Carbon segment, which is engaged in the production of Graphite Electrodes, Other Miscellaneous Graphite and Carbon Products, and related Processing/Service Charges; Steel segment, which is engaged in manufacturing of High Speed Steel and Alloy Steel; and Other segment, is engaged in manufacturing/laying of GRP Pipes and Power Generating Unit exclusively for outside sale. The company also manufactures other products like Impervious Graphite Equipment and Spares, steel and alloy steel, reinforced plastic pipes, and many more. It generates the majority of its revenue from the Graphite and Carbon segment.
81GF Score
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