As of today (2026-07-02), Newgen Software Technologies's weighted average cost of capital is 18.51%%. Newgen Software Technologies's ROIC % is 28.57% (calculated using TTM income statement data).
Newgen Software Technologies 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.
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, Newgen Software Technologies's weighted average cost of capital is 18.51%%. Newgen Software Technologies's ROIC % is 28.57% (calculated using TTM income statement data).
Newgen Software Technologies 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
Newgen Software Technologies 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 Software - Infrastructure subindustry, Newgen Software Technologies'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.
Newgen Software Technologies WACC % vs Software Industry
For the Software industry and Technology sector, Newgen Software Technologies's WACC % distribution charts can be found below:
* The bar in red indicates where Newgen Software Technologies'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, Newgen Software Technologies's market capitalization (E) is ₹67841.260 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, Newgen Software Technologies's latest one-year quarterly average Book Value of Debt (D) is ₹482.2417 Mil.
a) weight of equity = E / (E + D) = 67841.260 / (67841.260 + 482.2417) = 0.9929
b) weight of debt = D / (E + D) = 482.2417 / (67841.260 + 482.2417) = 0.0071
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. Newgen Software Technologies's beta is 1.9284.
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% + 1.9284 * 6% = 18.5904%
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, Newgen Software Technologies's interest expense (positive number) was ₹44.655 Mil. Its total Book Value of Debt (D) is ₹482.2417 Mil.
Cost of Debt = 44.655 / 482.2417 = 9.2599%.
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 = 867.145 / 3872.909 = 22.39%.
* 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.
Newgen Software Technologies (NSE:NEWGEN) has a WACC % of 18.51% as of Jul. 02, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Newgen Software Technologies and its competitors. This is 45% above median its historical median of 12.79. Over the past decade, Newgen Software Technologies' WACC % has ranged from 11.83 to 18.55. According to the industry distribution chart, Newgen Software Technologies ranks #2731 out of 2912 companies in the Software industry, placing it in the top 93.8%.
Is Newgen Software Technologies' WACC % too high?
Newgen Software Technologies' current WACC % of 18.51% is 45% above median its 10-year median of 12.79. Over the past 10 years, this metric has ranged from a low of 11.83 to a high of 18.55. The Software industry median WACC % is 9.00. Newgen Software Technologies' value of 18.51% is 105.8% above this industry median. Based on the distribution chart, Newgen Software Technologies ranks #2731 out of 2912 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Newgen Software Technologies has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Newgen Software Technologies' WACC % compare to MSFT and ORCL?
According to the Software industry distribution chart, Newgen Software Technologies ranks #2731 out of 2912 companies for WACC %. This places Newgen Software Technologies in the lower half of its industry. The industry median WACC % is 9.00. Newgen Software Technologies' value of 18.51% is 105.8% above this benchmark. Historically, Newgen Software Technologies' own WACC % has ranged from 11.83 to 18.55 over the past decade. While the company's 10-year median is 12.79 vs. the industry median of 9.00, Newgen Software Technologies 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 Software company?
The median WACC % among Software companies is 9.00, based on 2,912 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. Newgen Software Technologies's current WACC % of 18.51% is 105.8% 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 Newgen Software Technologies and its competitors. For the Software industry, the median WACC % is 9.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newgen Software Technologies's current WACC % is 18.51%, which is 45% above median its own 10-year median of 12.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newgen Software Technologies stock overvalued right now?
Based on GuruFocus' analysis, Newgen Software Technologies (NSE:NEWGEN) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,065.62, compared to a current price of ₹480.90 — trading 54.9% below its estimated fair value. The current WACC % is 18.51%, which is 45% above median its 10-year median of 12.79 and 105.8% above the Software industry median of 9.00. Newgen Software Technologies' overall GF Score™ is 86/100 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 Newgen Software Technologies (NSE:NEWGEN), the current WACC % is 18.51% as of Jul. 02, 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 Newgen Software Technologies (NSE:NEWGEN) Overvalued in 2026?
Based on GuruFocus' analysis, Newgen Software Technologies stock appears to be undervalued.
The current stock price of ₹480.90 is trading 54.9% below its estimated GF Value™ of ₹1,065.62.
GuruFocus considers Newgen Software Technologies to be Significantly Undervalued.
Key valuation signals for NSE:NEWGEN:
WACC %: 18.51% (45% above median its 10-year median of 12.79)
GF Value™: ₹1,065.62 vs. price of ₹480.90 (54.9% below fair value)
Industry Position: 105.8% above the Software median (#2731 of 2912)
No single metric tells the full story. See the NSE:NEWGEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newgen Software Technologies Ltd is a software company. It is engaged in software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to Document management to imaging. The entity's geographical segments are India; USA, and Africa (EMEA); Asia Pacific (APAC); and the United States of America (USA). It generates key revenue from India and the EMEA region. The company's NewgenONE Platform is a unified low-code platform for end-to-end automation at scale for enterprises. The platform offerings include Contextual Content Services (ECM), Intelligent Process Automation (BPM), Omnichannel Customer Engagement (CCM), and Low Code Application Development.
86GF Score
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