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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.
Pritika Engineering ComponentsNSE:PRITIKA 75 WACC % is 8.88% as of Jul. 27, 2026, which is 4% above its 10-year median of 8.51. GuruFocus rates NSE:PRITIKA with a GF Score™ of 75/100 and a GF Value™ of ₹95.92 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,340 Vehicles & Parts companies, Pritika Engineering Components ranks worse than 51.94% on this metric.
As of today (2026-07-27), Pritika Engineering Components's weighted average cost of capital is 8.88%%. Pritika Engineering Components's ROIC % is 7.10% (calculated using TTM income statement data).
Pritika Engineering Components 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.
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, Pritika Engineering Components's weighted average cost of capital is 8.88%%. Pritika Engineering Components's ROIC % is 7.10% (calculated using TTM income statement data).
Pritika Engineering Components 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 annual 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 annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
Related Terms
Pritika Engineering Components 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, Pritika Engineering Components'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.
Pritika Engineering Components WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Pritika Engineering Components's WACC % distribution charts can be found below:
* The bar in red indicates where Pritika Engineering Components'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, Pritika Engineering Components's market capitalization (E) is ₹1523.899 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 annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Mar. 2026, Pritika Engineering Components's latest one-year annual average Book Value of Debt (D) is ₹846.514 Mil.
a) weight of equity = E / (E + D) = 1523.899 / (1523.899 + 846.514) = 0.6429
b) weight of debt = D / (E + D) = 846.514 / (1523.899 + 846.514) = 0.3571
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. Pritika Engineering Components's beta is 0.5764.
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% + 0.5764 * 6% = 10.4784%
3. Cost of Debt:
GuruFocus uses latest annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Mar. 2026, Pritika Engineering Components's interest expense (positive number) was ₹61.481 Mil. Its total Book Value of Debt (D) is ₹846.514 Mil.
Cost of Debt = 61.481 / 846.514 = 7.2628%.
4. Multiply by one minus annual Tax Rate:
GuruFocus uses the most recent annual Tax Expense divided by the most recent annual Pre-Tax Income to calculate the tax rate. The calculated annual 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 annual Tax Rate = 15.191 / 88.293 = 17.21%.
* 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.
Pritika Engineering Components (NSE:PRITIKA) has a WACC % of 8.88% as of Jul. 27, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Pritika Engineering Components and its competitors. This is near median its historical median of 8.51. Over the past decade, Pritika Engineering Components' WACC % has ranged from 5.69 to 11.46. According to the industry distribution chart, Pritika Engineering Components ranks #696 out of 1340 companies in the Vehicles & Parts industry, placing it in the top 51.9%.
Is Pritika Engineering Components' WACC % too high?
Pritika Engineering Components' current WACC % of 8.88% is near median its 10-year median of 8.51. Over the past 10 years, this metric has ranged from a low of 5.69 to a high of 11.46. The Vehicles & Parts industry median WACC % is 8.66. Pritika Engineering Components' value of 8.88% is 2.5% above this industry median. Based on the distribution chart, Pritika Engineering Components ranks #696 out of 1340 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Pritika Engineering Components has a GF Score™ of 75/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Pritika Engineering Components' WACC % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Pritika Engineering Components ranks #696 out of 1340 companies for WACC %. This places Pritika Engineering Components in the lower half of its industry. The industry median WACC % is 8.66. Pritika Engineering Components' value of 8.88% is 2.5% above this benchmark. Historically, Pritika Engineering Components' own WACC % has ranged from 5.69 to 11.46 over the past decade. While the company's 10-year median is 8.51 vs. the industry median of 8.66, Pritika Engineering Components 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 8.66, based on 1,340 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. Pritika Engineering Components's current WACC % of 8.88% is 2.5% 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 Pritika Engineering Components and its competitors. For the Vehicles & Parts industry, the median WACC % is 8.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pritika Engineering Components's current WACC % is 8.88%, which is near median its own 10-year median of 8.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pritika Engineering Components stock overvalued right now?
Based on GuruFocus' analysis, Pritika Engineering Components (NSE:PRITIKA) is currently considered Possible Value Trap. The stock's GF Value™ is ₹95.92, compared to a current price of ₹57.80 — trading 39.7% below its estimated fair value. The current WACC % is 8.88%, which is near median its 10-year median of 8.51 and 2.5% above the Vehicles & Parts industry median of 8.66. Pritika Engineering Components' overall GF Score™ is 75/100 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 Pritika Engineering Components (NSE:PRITIKA), the current WACC % is 8.88% as of Jul. 27, 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 Pritika Engineering Components (NSE:PRITIKA) Overvalued in 2026?
Based on GuruFocus' analysis, Pritika Engineering Components stock appears to be undervalued.
The current stock price of ₹57.80 is trading 39.7% below its estimated GF Value™ of ₹95.92.
GuruFocus considers Pritika Engineering Components to be Possible Value Trap.
Key valuation signals for NSE:PRITIKA:
WACC %: 8.88% (near median its 10-year median of 8.51)
GF Value™: ₹95.92 vs. price of ₹57.80 (39.7% below fair value)
Industry Position: 2.5% above the Vehicles & Parts median (#696 of 1340)
No single metric tells the full story. See the NSE:PRITIKA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pritika Engineering Components Business Description
Pritika Engineering Components Ltd is engaged in the business of manufacturing precision-machined components for the automotive industry, especially for tractors, trucks, and other commercial vehicles. The company manufactures various Tractors and Automobile components like End Covers, Cover Sealed Brakes, Differential Cases, Cover Hydraulic Lift, Cover Transcase, Front Wheel hubs, Fly Wheel Housing, Rear Axle Casings, Hydraulic Lift Covers, Brake Housing, and Front Engine Supports. It manufactures customized products for tractors, commercial vehicles, and other construction equipment.
75GF Score
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