IIFL Capital ServicesNSE:IIFLCAPS 84 WACC % is 15.38% as of Jul. 08, 2026, which is 25% above its 10-year median of 12.32. GuruFocus rates NSE:IIFLCAPS with a GF Score™ of 84/100 and a GF Value™ of ₹235.29 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 830 Capital Markets companies, IIFL Capital Services ranks worse than 86.75% on this metric.
As of today (2026-07-08), IIFL Capital Services's weighted average cost of capital is 15.38%%. IIFL Capital Services's ROIC % is 5.24% (calculated using TTM income statement data).
IIFL Capital Services 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.
IIFL Capital Services (NSE:IIFLCAPS) 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, IIFL Capital Services's weighted average cost of capital is 15.38%%. IIFL Capital Services's ROIC % is 5.24% (calculated using TTM income statement data).
IIFL Capital Services 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.
* 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 Capital Markets subindustry, IIFL Capital Services'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.
IIFL Capital Services WACC % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, IIFL Capital Services's WACC % distribution charts can be found below:
* The bar in red indicates where IIFL Capital Services'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, IIFL Capital Services's market capitalization (E) is ₹106291.086 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, IIFL Capital Services's latest one-year quarterly average Book Value of Debt (D) is ₹15338.5127 Mil.
a) weight of equity = E / (E + D) = 106291.086 / (106291.086 + 15338.5127) = 0.8739
b) weight of debt = D / (E + D) = 15338.5127 / (106291.086 + 15338.5127) = 0.1261
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. IIFL Capital Services's beta is 1.5174.
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% + 1.5174 * 6% = 16.1244%
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, IIFL Capital Services's interest expense (positive number) was ₹2097.383 Mil. Its total Book Value of Debt (D) is ₹15338.5127 Mil.
Cost of Debt = 2097.383 / 15338.5127 = 13.674%.
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 = 1926.559 / 7562.92 = 25.47%.
IIFL Capital Services'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)
=
0.8739
*
16.1244%
+
0.1261
*
13.674%
*
(1 - 25.47%)
=
15.38%
* 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.
IIFL Capital Services (NSE:IIFLCAPS) has a WACC % of 15.38% 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 IIFL Capital Services and its competitors. This is 25% above median its historical median of 12.32. Over the past decade, IIFL Capital Services' WACC % has ranged from 7.76 to 15.39. According to the industry distribution chart, IIFL Capital Services ranks #720 out of 830 companies in the Capital Markets industry, placing it in the top 86.7%.
Is IIFL Capital Services' WACC % too high?
IIFL Capital Services' current WACC % of 15.38% is 25% above median its 10-year median of 12.32. Over the past 10 years, this metric has ranged from a low of 7.76 to a high of 15.39. The Capital Markets industry median WACC % is 9.34. IIFL Capital Services' value of 15.38% is 64.8% above this industry median. Based on the distribution chart, IIFL Capital Services ranks #720 out of 830 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, IIFL Capital Services has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IIFL Capital Services' WACC % compare to MS and GS?
According to the Capital Markets industry distribution chart, IIFL Capital Services ranks #720 out of 830 companies for WACC %. This places IIFL Capital Services in the lower half of its industry. The industry median WACC % is 9.34. IIFL Capital Services' value of 15.38% is 64.8% above this benchmark. Historically, IIFL Capital Services' own WACC % has ranged from 7.76 to 15.39 over the past decade. While the company's 10-year median is 12.32 vs. the industry median of 9.34, IIFL Capital Services 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 Capital Markets company?
The median WACC % among Capital Markets companies is 9.34, based on 830 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. IIFL Capital Services's current WACC % of 15.38% is 64.8% 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 IIFL Capital Services and its competitors. For the Capital Markets industry, the median WACC % is 9.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IIFL Capital Services's current WACC % is 15.38%, which is 25% above median its own 10-year median of 12.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IIFL Capital Services stock overvalued right now?
Based on GuruFocus' analysis, IIFL Capital Services (NSE:IIFLCAPS) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹235.29, compared to a current price of ₹338.95 — trading 44.1% above its estimated fair value. The current WACC % is 15.38%, which is 25% above median its 10-year median of 12.32 and 64.8% above the Capital Markets industry median of 9.34. IIFL Capital Services' overall GF Score™ is 84/100 with 9 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 IIFL Capital Services (NSE:IIFLCAPS), the current WACC % is 15.38% 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 IIFL Capital Services (NSE:IIFLCAPS) Overvalued in 2026?
Based on GuruFocus' analysis, IIFL Capital Services stock appears to be overvalued.
The current stock price of ₹338.95 is trading 44.1% above its estimated GF Value™ of ₹235.29.
GuruFocus considers IIFL Capital Services to be Significantly Overvalued.
Key valuation signals for NSE:IIFLCAPS:
WACC %: 15.38% (25% above median its 10-year median of 12.32)
GF Value™: ₹235.29 vs. price of ₹338.95 (44.1% above fair value)
Industry Position: 64.8% above the Capital Markets median (#720 of 830)
No single metric tells the full story. See the NSE:IIFLCAPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IIFL Capital Services Ltd is engaged in retail broking and financial product distribution. It operates as an independent full-service retail and institutional broking firm in India and provides a range of investment advisory and financial services. Its clients include corporates, institutional investors, foreign portfolio investors, mutual funds, insurance companies, alternative investment funds, trusts, high-net-worth individuals, and retail investors. The company's retail brokerage and financial services include financial planning, equity, commodities and currency broking, depository participant services, portfolio advisory, and other investment products. Its institutional equities business provides broking, research, and corporate access services to institutional clients.
84GF Score
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