Popular Vehicles and ServicesNSE:PVSL +1.61%30 WACC % is 10.11% as of Jul. 01, 2026, which is 4% below its 10-year median of 10.55. GuruFocus rates NSE:PVSL with a GF Score™ of 30/100. The stock has 3 warning signs investors should review. Among 1,345 Vehicles & Parts companies, Popular Vehicles and Services ranks worse than 63.87% on this metric.
As of today (2026-07-01), Popular Vehicles and Services's weighted average cost of capital is 10.11%%. Popular Vehicles and Services's ROIC % is 2.98% (calculated using TTM income statement data).
Popular Vehicles and Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
For a comprehensive WACC calculation, please access the WACC Calculator.
Popular Vehicles and Services (NSE:PVSL) 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, Popular Vehicles and Services's weighted average cost of capital is 10.11%%. Popular Vehicles and Services's ROIC % is 2.98% (calculated using TTM income statement data).
Popular Vehicles and Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.
*Note: The beta of this company cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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
Popular Vehicles and Services 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 & Truck Dealerships subindustry, Popular Vehicles and Services'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.
Popular Vehicles and Services WACC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Popular Vehicles and Services's WACC % distribution charts can be found below:
* The bar in red indicates where Popular Vehicles and Services'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, Popular Vehicles and Services's market capitalization (E) is ₹6526.027 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, Popular Vehicles and Services's latest one-year quarterly average Book Value of Debt (D) is ₹11461.04 Mil.
a) weight of equity = E / (E + D) = 6526.027 / (6526.027 + 11461.04) = 0.3628
b) weight of debt = D / (E + D) = 11461.04 / (6526.027 + 11461.04) = 0.6372
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. Popular Vehicles and Services's beta cannot be obtained because it has a price history shorter than 3 years. It will thus be set to 1 as default to calculate WACC.
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 * 6% = 13.02%
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, Popular Vehicles and Services's interest expense (positive number) was ₹1032.89 Mil. Its total Book Value of Debt (D) is ₹11461.04 Mil.
Cost of Debt = 1032.89 / 11461.04 = 9.0122%.
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 = -8.26 / -133 = 6.21%.
* 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.
Popular Vehicles and Services (NSE:PVSL) has a WACC % of 10.11% as of Jul. 01, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Popular Vehicles and Services and its competitors. This is near median its historical median of 10.55. Over the past decade, Popular Vehicles and Services' WACC % has ranged from 9.98 to 10.89. According to the industry distribution chart, Popular Vehicles and Services ranks #859 out of 1345 companies in the Vehicles & Parts industry, placing it in the top 63.9%.
Is Popular Vehicles and Services' WACC % too high?
Popular Vehicles and Services' current WACC % of 10.11% is near median its 10-year median of 10.55. Over the past 10 years, this metric has ranged from a low of 9.98 to a high of 10.89. The Vehicles & Parts industry median WACC % is 8.47. Popular Vehicles and Services' value of 10.11% is 19.4% above this industry median. Based on the distribution chart, Popular Vehicles and Services ranks #859 out of 1345 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Popular Vehicles and Services has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Popular Vehicles and Services' WACC % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Popular Vehicles and Services ranks #859 out of 1345 companies for WACC %. This places Popular Vehicles and Services in the lower half of its industry. The industry median WACC % is 8.47. Popular Vehicles and Services' value of 10.11% is 19.4% above this benchmark. Historically, Popular Vehicles and Services' own WACC % has ranged from 9.98 to 10.89 over the past decade. While the company's 10-year median is 10.55 vs. the industry median of 8.47, Popular Vehicles and Services 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. Popular Vehicles and Services's current WACC % of 10.11% is 19.4% 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 Popular Vehicles and Services 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. Popular Vehicles and Services's current WACC % is 10.11%, which is near median its own 10-year median of 10.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Popular Vehicles and Services stock overvalued right now?
Popular Vehicles and Services (NSE:PVSL) has a current WACC % of 10.11%. The current WACC % is 10.11%, which is near median its 10-year median of 10.55 and 19.4% above the Vehicles & Parts industry median of 8.47. Popular Vehicles and Services' overall GF Score™ is 30/100 with 3 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 Popular Vehicles and Services (NSE:PVSL), the current WACC % is 10.11% as of Jul. 01, 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.
Popular Vehicles and Services Business Description
Popular Vehicles and Services Ltd is engaged in automobile dealerships in India. It caters to the complete life cycle of vehicle ownership, right from the sale of new vehicles, servicing and repairing vehicles, distributing spare parts and accessories, facilitating the sale and exchange of pre-owned vehicles, operating driving schools, and facilitating the sale of third-party financial and insurance products. The group has structured its business broadly into four verticals-Passenger cars (excluding luxury vehicles), Luxury vehicles, Commercial vehicles, and others. Others comprise spare parts retail sales - other than through the respective business segments and sale of electric vehicles - two-wheelers and three-wheelers. Key revenue is generated from the passenger cars segment.
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