Honasa ConsumerNSE:HONASA +0.59%57 WACC % is 12.97% as of Jul. 08, 2026, which is 2% above its 10-year median of 12.68. GuruFocus rates NSE:HONASA with a GF Score™ of 57/100 and a GF Value™ of ₹363.14 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 2,033 Consumer Packaged Goods companies, Honasa Consumer ranks worse than 90.8% on this metric.
As of today (2026-07-08), Honasa Consumer's weighted average cost of capital is 12.97%%. Honasa Consumer's ROIC % is 14.25% (calculated using TTM income statement data).
Honasa Consumer generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Honasa Consumer (NSE:HONASA) 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, Honasa Consumer's weighted average cost of capital is 12.97%%. Honasa Consumer's ROIC % is 14.25% (calculated using TTM income statement data).
Honasa Consumer generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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
Honasa Consumer WACC % Historical Data
* Premium members only.
The historical data trend for Honasa Consumer'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 Household & Personal Products subindustry, Honasa Consumer'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.
Honasa Consumer WACC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Honasa Consumer's WACC % distribution charts can be found below:
* The bar in red indicates where Honasa Consumer'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, Honasa Consumer's market capitalization (E) is ₹152563.032 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, Honasa Consumer's latest one-year quarterly average Book Value of Debt (D) is ₹1379.6 Mil.
a) weight of equity = E / (E + D) = 152563.032 / (152563.032 + 1379.6) = 0.991
b) weight of debt = D / (E + D) = 1379.6 / (152563.032 + 1379.6) = 0.009
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. Honasa Consumer's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 * 6% = 13.02%
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, Honasa Consumer's interest expense (positive number) was ₹131.38 Mil. Its total Book Value of Debt (D) is ₹1379.6 Mil.
Cost of Debt = 131.38 / 1379.6 = 9.5231%.
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 = 570.72 / 2572.62 = 22.18%.
Honasa Consumer'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)
=
0.991
*
13.02%
+
0.009
*
9.5231%
*
(1 - 22.18%)
=
12.97%
* 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.
Honasa Consumer (NSE:HONASA) has a WACC % of 12.97% as of Jul. 08, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Honasa Consumer and its competitors. This is near median its historical median of 12.68. Over the past decade, Honasa Consumer's WACC % has ranged from 7.33 to 13.02. According to the industry distribution chart, Honasa Consumer ranks #1846 out of 2033 companies in the Consumer Packaged Goods industry, placing it in the top 90.8%.
Is Honasa Consumer's WACC % too high?
Honasa Consumer's current WACC % of 12.97% is near median its 10-year median of 12.68. Over the past 10 years, this metric has ranged from a low of 7.33 to a high of 13.02. The Consumer Packaged Goods industry median WACC % is 7.68. Honasa Consumer's value of 12.97% is 68.9% above this industry median. Based on the distribution chart, Honasa Consumer ranks #1846 out of 2033 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Honasa Consumer has a GF Score™ of 57/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honasa Consumer's WACC % compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Honasa Consumer ranks #1846 out of 2033 companies for WACC %. This places Honasa Consumer in the lower half of its industry. The industry median WACC % is 7.68. Honasa Consumer's value of 12.97% is 68.9% above this benchmark. Historically, Honasa Consumer's own WACC % has ranged from 7.33 to 13.02 over the past decade. While the company's 10-year median is 12.68 vs. the industry median of 7.68, Honasa Consumer 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 a Consumer Packaged Goods company?
The median WACC % among Consumer Packaged Goods companies is 7.68, based on 2,033 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. Honasa Consumer's current WACC % of 12.97% is 68.9% 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 Honasa Consumer and its competitors. For the Consumer Packaged Goods industry, the median WACC % is 7.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honasa Consumer's current WACC % is 12.97%, which is near median its own 10-year median of 12.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honasa Consumer stock overvalued right now?
Based on GuruFocus' analysis, Honasa Consumer (NSE:HONASA) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹363.14, compared to a current price of ₹467.60 — trading 28.8% above its estimated fair value. The current WACC % is 12.97%, which is near median its 10-year median of 12.68 and 68.9% above the Consumer Packaged Goods industry median of 7.68. Honasa Consumer's overall GF Score™ is 57/100 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 Honasa Consumer (NSE:HONASA), the current WACC % is 12.97% as of Jul. 08, 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 Honasa Consumer (NSE:HONASA) Overvalued in 2026?
Based on GuruFocus' analysis, Honasa Consumer stock appears to be overvalued.
The current stock price of ₹467.60 is trading 28.8% above its estimated GF Value™ of ₹363.14.
GuruFocus considers Honasa Consumer to be Modestly Overvalued.
Key valuation signals for NSE:HONASA:
WACC %: 12.97% (near median its 10-year median of 12.68)
GF Value™: ₹363.14 vs. price of ₹467.60 (28.8% above fair value)
Industry Position: 68.9% above the Consumer Packaged Goods median (#1846 of 2033)
No single metric tells the full story. See the NSE:HONASA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honasa Consumer Ltd is a digital-first beauty and personal care (BPC) company in India. It trades various beauty and personal care products across baby care, skin care, hair, and other related personal care categories. The products are manufactured through third-party contract manufacturers under the brand name of Mamaearth, The Derma Co, BBlunt, Aqualogica, and Ayuga. Geographically, the company generates a majority of its revenue within India.
57GF Score
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