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As of today (2026-07-17), Nippon Life India Asset Management's weighted average cost of capital is 13.19%%. Nippon Life India Asset Management's ROIC % is 49.34% (calculated using TTM income statement data).
Nippon Life India Asset Management 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.
Nippon Life India Asset Management (NSE:NAM-INDIA) 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, Nippon Life India Asset Management's weighted average cost of capital is 13.19%%. Nippon Life India Asset Management's ROIC % is 49.34% (calculated using TTM income statement data).
Nippon Life India Asset Management 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
Nippon Life India Asset Management 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 Asset Management subindustry, Nippon Life India Asset Management'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.
Nippon Life India Asset Management WACC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Nippon Life India Asset Management's WACC % distribution charts can be found below:
* The bar in red indicates where Nippon Life India Asset Management's WACC % falls into.
Nippon Life India Asset Management WACC % Calculation
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, Nippon Life India Asset Management's market capitalization (E) is ₹735861.542 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, Nippon Life India Asset Management's latest one-year quarterly average Book Value of Debt (D) is ₹827.6667 Mil.
a) weight of equity = E / (E + D) = 735861.542 / (735861.542 + 827.6667) = 0.9989
b) weight of debt = D / (E + D) = 827.6667 / (735861.542 + 827.6667) = 0.0011
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. Nippon Life India Asset Management's beta is 1.0302.
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% + 1.0302 * 6% = 13.2012%
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, Nippon Life India Asset Management's interest expense (positive number) was ₹70 Mil. Its total Book Value of Debt (D) is ₹827.6667 Mil.
Cost of Debt = 70 / 827.6667 = 8.4575%.
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 = 4438.3 / 19719.6 = 22.51%.
* 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.
Nippon Life India Asset Management (NSE:NAM-INDIA) has a WACC % of 13.19% as of Jul. 17, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Nippon Life India Asset Management and its competitors. This is near median its historical median of 12.65. Over the past decade, Nippon Life India Asset Management's WACC % has ranged from 11.60 to 13.94. According to the industry distribution chart, Nippon Life India Asset Management ranks #1515 out of 1651 companies in the Asset Management industry, placing it in the top 91.8%.
Is Nippon Life India Asset Management's WACC % too high?
Nippon Life India Asset Management's current WACC % of 13.19% is near median its 10-year median of 12.65. Over the past 10 years, this metric has ranged from a low of 11.60 to a high of 13.94. The Asset Management industry median WACC % is 8.49. Nippon Life India Asset Management's value of 13.19% is 55.4% above this industry median. Based on the distribution chart, Nippon Life India Asset Management ranks #1515 out of 1651 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, Nippon Life India Asset Management has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nippon Life India Asset Management's WACC % compare to BLK and BX?
According to the Asset Management industry distribution chart, Nippon Life India Asset Management ranks #1515 out of 1651 companies for WACC %. This places Nippon Life India Asset Management in the lower half of its industry. The industry median WACC % is 8.49. Nippon Life India Asset Management's value of 13.19% is 55.4% above this benchmark. Historically, Nippon Life India Asset Management's own WACC % has ranged from 11.60 to 13.94 over the past decade. While the company's 10-year median is 12.65 vs. the industry median of 8.49, Nippon Life India Asset Management 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 Asset Management company?
The median WACC % among Asset Management companies is 8.49, based on 1,651 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. Nippon Life India Asset Management's current WACC % of 13.19% is 55.4% 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 Nippon Life India Asset Management and its competitors. For the Asset Management industry, the median WACC % is 8.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nippon Life India Asset Management's current WACC % is 13.19%, which is near median its own 10-year median of 12.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nippon Life India Asset Management stock overvalued right now?
Based on GuruFocus' analysis, Nippon Life India Asset Management (NSE:NAM-INDIA) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹970.47, compared to a current price of ₹1,151.50 — trading 18.7% above its estimated fair value. The current WACC % is 13.19%, which is near median its 10-year median of 12.65 and 55.4% above the Asset Management industry median of 8.49. Nippon Life India Asset Management's overall GF Score™ is 91/100 with 6 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 Nippon Life India Asset Management (NSE:NAM-INDIA), the current WACC % is 13.19% as of Jul. 17, 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 Nippon Life India Asset Management (NSE:NAM-INDIA) Overvalued in 2026?
Based on GuruFocus' analysis, Nippon Life India Asset Management stock appears to be overvalued.
The current stock price of ₹1,151.50 is trading 18.7% above its estimated GF Value™ of ₹970.47.
GuruFocus considers Nippon Life India Asset Management to be Modestly Overvalued.
Key valuation signals for NSE:NAM-INDIA:
WACC %: 13.19% (near median its 10-year median of 12.65)
GF Value™: ₹970.47 vs. price of ₹1,151.50 (18.7% above fair value)
Industry Position: 55.4% above the Asset Management median (#1515 of 1651)
No single metric tells the full story. See the NSE:NAM-INDIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nippon Life India Asset Management Business Description
Nippon Life India Asset Management Ltd principal activity is to act as an investment manager to Nippon India Mutual Fund. The Company is in the business of providing asset management services to the schemes of Nippon India Mutual Fund, funds launched in GIFT city, portfolio management service, and advisory service to the clients/schemes. The primary segment is identified as asset management services. The company's products are Equity Funds, Debt Funds, Index Funds, Hybrid Funds, Gold Funds, Liquid Funds, Retirement Funds, ETF, NFO/FFO, etc.
91GF Score
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