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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Max Healthcare InstituteNSE:MAXHEALTH -0.76%93 WACC % is 13.77% as of Jul. 20, 2026, which is 11% above its 10-year median of 12.38. GuruFocus rates NSE:MAXHEALTH with a GF Score™ of 93/100 and a GF Value™ of ₹1,431.48 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 690 Healthcare Providers & Services companies, Max Healthcare Institute ranks worse than 87.97% on this metric.
As of today (2026-07-20), Max Healthcare Institute's weighted average cost of capital is 13.77%%. Max Healthcare Institute's ROIC % is 10.01% (calculated using TTM income statement data).
Max Healthcare Institute 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.
Max Healthcare Institute (NSE:MAXHEALTH) 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, Max Healthcare Institute's weighted average cost of capital is 13.77%%. Max Healthcare Institute's ROIC % is 10.01% (calculated using TTM income statement data).
Max Healthcare Institute 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 Medical Care Facilities subindustry, Max Healthcare Institute'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.
Max Healthcare Institute WACC % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Max Healthcare Institute's WACC % distribution charts can be found below:
* The bar in red indicates where Max Healthcare Institute'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, Max Healthcare Institute's market capitalization (E) is ₹1060576.065 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, Max Healthcare Institute's latest one-year quarterly average Book Value of Debt (D) is ₹32545.5667 Mil.
a) weight of equity = E / (E + D) = 1060576.065 / (1060576.065 + 32545.5667) = 0.9702
b) weight of debt = D / (E + D) = 32545.5667 / (1060576.065 + 32545.5667) = 0.0298
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. Max Healthcare Institute's beta is 1.1638.
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% + 1.1638 * 6% = 14.0028%
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, Max Healthcare Institute's interest expense (positive number) was ₹2351 Mil. Its total Book Value of Debt (D) is ₹32545.5667 Mil.
Cost of Debt = 2351 / 32545.5667 = 7.2237%.
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 = 2331.7 / 16755.8 = 13.92%.
* 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.
Max Healthcare Institute (NSE:MAXHEALTH) has a WACC % of 13.77% as of Jul. 20, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Max Healthcare Institute and its competitors. This is 11% above median its historical median of 12.38. Over the past decade, Max Healthcare Institute's WACC % has ranged from 9.70 to 14.07. According to the industry distribution chart, Max Healthcare Institute ranks #607 out of 690 companies in the Healthcare Providers & Services industry, placing it in the top 88%.
Is Max Healthcare Institute's WACC % too high?
Max Healthcare Institute's current WACC % of 13.77% is 11% above median its 10-year median of 12.38. Over the past 10 years, this metric has ranged from a low of 9.70 to a high of 14.07. The Healthcare Providers & Services industry median WACC % is 8.52. Max Healthcare Institute's value of 13.77% is 61.6% above this industry median. Based on the distribution chart, Max Healthcare Institute ranks #607 out of 690 companies in the Healthcare Providers & Services industry, which is in the bottom quartile relative to peers. Overall, Max Healthcare Institute has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Max Healthcare Institute's WACC % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Max Healthcare Institute ranks #607 out of 690 companies for WACC %. This places Max Healthcare Institute in the lower half of its industry. The industry median WACC % is 8.52. Max Healthcare Institute's value of 13.77% is 61.6% above this benchmark. Historically, Max Healthcare Institute's own WACC % has ranged from 9.70 to 14.07 over the past decade. While the company's 10-year median is 12.38 vs. the industry median of 8.52, Max Healthcare Institute 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 Healthcare Providers & Services company?
The median WACC % among Healthcare Providers & Services companies is 8.52, based on 690 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. Max Healthcare Institute's current WACC % of 13.77% is 61.6% 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 Max Healthcare Institute and its competitors. For the Healthcare Providers & Services industry, the median WACC % is 8.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Max Healthcare Institute's current WACC % is 13.77%, which is 11% above median its own 10-year median of 12.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Max Healthcare Institute stock overvalued right now?
Based on GuruFocus' analysis, Max Healthcare Institute (NSE:MAXHEALTH) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,431.48, compared to a current price of ₹1,089.90 — trading 23.9% below its estimated fair value. The current WACC % is 13.77%, which is 11% above median its 10-year median of 12.38 and 61.6% above the Healthcare Providers & Services industry median of 8.52. Max Healthcare Institute's overall GF Score™ is 93/100 with 1 warning sign 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 Max Healthcare Institute (NSE:MAXHEALTH), the current WACC % is 13.77% as of Jul. 20, 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 Max Healthcare Institute (NSE:MAXHEALTH) Overvalued in 2026?
Based on GuruFocus' analysis, Max Healthcare Institute stock appears to be undervalued.
The current stock price of ₹1,089.90 is trading 23.9% below its estimated GF Value™ of ₹1,431.48.
GuruFocus considers Max Healthcare Institute to be Modestly Undervalued.
Key valuation signals for NSE:MAXHEALTH:
WACC %: 13.77% (11% above median its 10-year median of 12.38)
GF Value™: ₹1,431.48 vs. price of ₹1,089.90 (23.9% below fair value)
Industry Position: 61.6% above the Healthcare Providers & Services median (#607 of 690)
No single metric tells the full story. See the NSE:MAXHEALTH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Max Healthcare Institute Ltd is a health care service provider. The company's facilities include third-party healthcare providers with whom the company has entered long-term service contracts for providing clinical, radiology, and pathology services. Its hospitals provide the full range of services through its Outpatient, Day Care, Emergency Room, and In-Patient departments to accommodate medical specialties such as orthopedics, internal medicine, general surgery, cardiac sciences, oncology, neurosciences, and obstetrics, as well as diagnostics. The group derives revenue from India.
93GF Score
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