Harsha Engineers InternationalNSE:HARSHA 85 WACC % is 11.64% as of Jul. 02, 2026, which is 4% below its 10-year median of 12.18. GuruFocus rates NSE:HARSHA with a GF Score™ of 85/100 and a GF Value™ of ₹495.75 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 3,086 Industrial Products companies, Harsha Engineers International ranks worse than 71.48% on this metric.
As of today (2026-07-02), Harsha Engineers International's weighted average cost of capital is 11.64%%. Harsha Engineers International's ROIC % is 9.96% (calculated using TTM income statement data).
Harsha Engineers International 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.
Harsha Engineers International (NSE:HARSHA) 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, Harsha Engineers International's weighted average cost of capital is 11.64%%. Harsha Engineers International's ROIC % is 9.96% (calculated using TTM income statement data).
Harsha Engineers International 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
Harsha Engineers International 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.
For the Tools & Accessories subindustry, Harsha Engineers International'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.
Harsha Engineers International WACC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Harsha Engineers International's WACC % distribution charts can be found below:
* The bar in red indicates where Harsha Engineers International'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, Harsha Engineers International's market capitalization (E) is ₹38174.793 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, Harsha Engineers International's latest one-year quarterly average Book Value of Debt (D) is ₹2965.6333 Mil.
a) weight of equity = E / (E + D) = 38174.793 / (38174.793 + 2965.6333) = 0.9279
b) weight of debt = D / (E + D) = 2965.6333 / (38174.793 + 2965.6333) = 0.0721
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. Harsha Engineers International's beta is 0.8702.
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% + 0.8702 * 6% = 12.2412%
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, Harsha Engineers International's interest expense (positive number) was ₹162.6 Mil. Its total Book Value of Debt (D) is ₹2965.6333 Mil.
Cost of Debt = 162.6 / 2965.6333 = 5.4828%.
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 = 600.5 / 2152.5 = 27.9%.
* 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.
Harsha Engineers International (NSE:HARSHA) has a WACC % of 11.64% as of Jul. 02, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Harsha Engineers International and its competitors. This is near median its historical median of 12.18. Over the past decade, Harsha Engineers International's WACC % has ranged from 4.20 to 12.75. According to the industry distribution chart, Harsha Engineers International ranks #2206 out of 3086 companies in the Industrial Products industry, placing it in the top 71.5%.
Is Harsha Engineers International's WACC % too high?
Harsha Engineers International's current WACC % of 11.64% is near median its 10-year median of 12.18. Over the past 10 years, this metric has ranged from a low of 4.20 to a high of 12.75. The Industrial Products industry median WACC % is 9.67. Harsha Engineers International's value of 11.64% is 20.4% above this industry median. Based on the distribution chart, Harsha Engineers International ranks #2206 out of 3086 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Harsha Engineers International has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Harsha Engineers International's WACC % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Harsha Engineers International ranks #2206 out of 3086 companies for WACC %. This places Harsha Engineers International in the lower half of its industry. The industry median WACC % is 9.67. Harsha Engineers International's value of 11.64% is 20.4% above this benchmark. Historically, Harsha Engineers International's own WACC % has ranged from 4.20 to 12.75 over the past decade. While the company's 10-year median is 12.18 vs. the industry median of 9.67, Harsha Engineers International 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 3,086 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. Harsha Engineers International's current WACC % of 11.64% is 20.4% 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 Harsha Engineers International 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. Harsha Engineers International's current WACC % is 11.64%, which is near median its own 10-year median of 12.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Harsha Engineers International stock overvalued right now?
Based on GuruFocus' analysis, Harsha Engineers International (NSE:HARSHA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹495.75, compared to a current price of ₹419.70 — trading 15.3% below its estimated fair value. The current WACC % is 11.64%, which is near median its 10-year median of 12.18 and 20.4% above the Industrial Products industry median of 9.67. Harsha Engineers International's overall GF Score™ is 85/100 with 5 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 Harsha Engineers International (NSE:HARSHA), the current WACC % is 11.64% as of Jul. 02, 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 Harsha Engineers International (NSE:HARSHA) Overvalued in 2026?
Based on GuruFocus' analysis, Harsha Engineers International stock appears to be undervalued.
The current stock price of ₹419.70 is trading 15.3% below its estimated GF Value™ of ₹495.75.
GuruFocus considers Harsha Engineers International to be Modestly Undervalued.
Key valuation signals for NSE:HARSHA:
WACC %: 11.64% (near median its 10-year median of 12.18)
GF Value™: ₹495.75 vs. price of ₹419.70 (15.3% below fair value)
Industry Position: 20.4% above the Industrial Products median (#2206 of 3086)
No single metric tells the full story. See the NSE:HARSHA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Harsha Engineers International Business Description
Harsha Engineers International Ltd is a manufacturer of precision bearing cages. The company supplies its products to customers covering five continents such as North America, Europe, Asia, South America, and Africa. It comprises two segments: Engineering business, under which the company manufactures bearing cages (in brass, steel, and polyamide materials), complex and specialized precision stamped components, welded assemblies and brass castings and cages & bronze bushings: and Solar EPC business, under which the company provide complete comprehensive turnkey solutions to all solar photovoltaic requirements and provides operations and maintenance services in the solar sector.
85GF Score
Get the complete analysis for NSE:HARSHA
WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:HARSHA has been successfully added to your 
