As of today (2026-07-03), Jullundur Motor Agency (Delhi)'s weighted average cost of capital is 11.9%%. Jullundur Motor Agency (Delhi)'s ROIC % is 14.06% (calculated using TTM income statement data).
Jullundur Motor Agency (Delhi) 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Jullundur Motor Agency (Delhi) (NSE:JMA) 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, Jullundur Motor Agency (Delhi)'s weighted average cost of capital is 11.9%%. Jullundur Motor Agency (Delhi)'s ROIC % is 14.06% (calculated using TTM income statement data).
Jullundur Motor Agency (Delhi) 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.
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
Jullundur Motor Agency (Delhi) 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 Auto Parts subindustry, Jullundur Motor Agency (Delhi)'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.
Jullundur Motor Agency (Delhi) WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Jullundur Motor Agency (Delhi)'s WACC % distribution charts can be found below:
* The bar in red indicates where Jullundur Motor Agency (Delhi)'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, Jullundur Motor Agency (Delhi)'s market capitalization (E) is ₹1994.709 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, Jullundur Motor Agency (Delhi)'s latest one-year quarterly average Book Value of Debt (D) is ₹0 Mil.
a) weight of equity = E / (E + D) = 1994.709 / (1994.709 + 0) = 1
b) weight of debt = D / (E + D) = 0 / (1994.709 + 0) = 0
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. Jullundur Motor Agency (Delhi)'s beta is 0.8140.
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% + 0.8140 * 6% = 11.904%
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, Jullundur Motor Agency (Delhi)'s interest expense (positive number) was ₹-0 Mil. Its total Book Value of Debt (D) is ₹0 Mil.
Cost of Debt = -0 / 0 = %.
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 = 101.97 / 404.054 = 25.24%.
* 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.
Jullundur Motor Agency (Delhi) (NSE:JMA) has a WACC % of 11.9% as of Jul. 03, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Jullundur Motor Agency (Delhi) and its competitors. This is near median its historical median of 11.48. Over the past decade, Jullundur Motor Agency (Delhi)'s WACC % has ranged from 5.61 to 13.12. According to the industry distribution chart, Jullundur Motor Agency (Delhi) ranks #1051 out of 1345 companies in the Vehicles & Parts industry, placing it in the top 78.1%.
Is Jullundur Motor Agency (Delhi)'s WACC % too high?
Jullundur Motor Agency (Delhi)'s current WACC % of 11.9% is near median its 10-year median of 11.48. Over the past 10 years, this metric has ranged from a low of 5.61 to a high of 13.12. The Vehicles & Parts industry median WACC % is 8.47. Jullundur Motor Agency (Delhi)'s value of 11.9% is 40.5% above this industry median. Based on the distribution chart, Jullundur Motor Agency (Delhi) ranks #1051 out of 1345 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Jullundur Motor Agency (Delhi) has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Jullundur Motor Agency (Delhi)'s WACC % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Jullundur Motor Agency (Delhi) ranks #1051 out of 1345 companies for WACC %. This places Jullundur Motor Agency (Delhi) in the lower half of its industry. The industry median WACC % is 8.47. Jullundur Motor Agency (Delhi)'s value of 11.9% is 40.5% above this benchmark. Historically, Jullundur Motor Agency (Delhi)'s own WACC % has ranged from 5.61 to 13.12 over the past decade. While the company's 10-year median is 11.48 vs. the industry median of 8.47, Jullundur Motor Agency (Delhi) 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 Vehicles & Parts company?
The median WACC % among Vehicles & Parts companies is 8.47, based on 1,345 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. Jullundur Motor Agency (Delhi)'s current WACC % of 11.9% is 40.5% 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 Jullundur Motor Agency (Delhi) and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jullundur Motor Agency (Delhi)'s current WACC % is 11.9%, which is near median its own 10-year median of 11.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jullundur Motor Agency (Delhi) stock overvalued right now?
Based on GuruFocus' analysis, Jullundur Motor Agency (Delhi) (NSE:JMA) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹101.17, compared to a current price of ₹87.33 — trading 13.7% below its estimated fair value. The current WACC % is 11.9%, which is near median its 10-year median of 11.48 and 40.5% above the Vehicles & Parts industry median of 8.47. Jullundur Motor Agency (Delhi)'s overall GF Score™ is 83/100 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 Jullundur Motor Agency (Delhi) (NSE:JMA), the current WACC % is 11.9% as of Jul. 03, 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 Jullundur Motor Agency (Delhi) (NSE:JMA) Overvalued in 2026?
Based on GuruFocus' analysis, Jullundur Motor Agency (Delhi) stock appears to be undervalued.
The current stock price of ₹87.33 is trading 13.7% below its estimated GF Value™ of ₹101.17.
GuruFocus considers Jullundur Motor Agency (Delhi) to be Modestly Undervalued.
Key valuation signals for NSE:JMA:
WACC %: 11.9% (near median its 10-year median of 11.48)
GF Value™: ₹101.17 vs. price of ₹87.33 (13.7% below fair value)
Industry Position: 40.5% above the Vehicles & Parts median (#1051 of 1345)
No single metric tells the full story. See the NSE:JMA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jullundur Motor Agency (Delhi) Business Description
Jullundur Motor Agency (Delhi) Ltd operates in the auto components industry and is engaged in the distribution of automobile parts, accessories, and petroleum products across India. It offers products that include brakes, bearings, clutches, cooling systems, engine components, suspension, power steering, oil & lubricants, filters, and others. The operating segment of the company is Automobile parts and Accessories in India.
83GF Score
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