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Vedanta Iron and SteelNSE:VISL +0.70%2 WACC % is 12.05% as of Aug. 13, 2026, which is at its 10-year median of 12.05. GuruFocus rates NSE:VISL with a GF Score™ of 2/100. The stock has 7 warning signs investors should review. Among 638 Steel companies, Vedanta Iron and Steel ranks worse than 77.59% on this metric.
As of today (2026-08-13), Vedanta Iron and Steel's weighted average cost of capital is 12.05%%. Vedanta Iron and Steel's ROIC % is 0.93% (calculated using TTM income statement data).
Vedanta Iron and Steel 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.
Vedanta Iron and Steel (NSE:VISL) 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, Vedanta Iron and Steel's weighted average cost of capital is 12.05%%. Vedanta Iron and Steel's ROIC % is 0.93% (calculated using TTM income statement data).
Vedanta Iron and Steel 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 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.
* 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.
Vedanta Iron and Steel WACC % Chart
Vedanta Iron and Steel Annual Data
Trend
Mar24
Mar25
Mar26
WACC %
0.00
12.94
11.15
Vedanta Iron and Steel Semi-Annual Data
Mar24
Mar25
Mar26
WACC %
0.00
12.94
11.15
NSE:VISL vs NUE, STLD, RS: WACC % Comparison
For the Steel subindustry, Vedanta Iron and Steel'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.
Vedanta Iron and Steel WACC % vs Steel Industry
For the Steel industry and Basic Materials sector, Vedanta Iron and Steel's WACC % distribution charts can be found below:
* The bar in red indicates where Vedanta Iron and Steel'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, Vedanta Iron and Steel's market capitalization (E) is ₹152574.406 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, Vedanta Iron and Steel's latest one-year annual average Book Value of Debt (D) is ₹163000 Mil.
a) weight of equity = E / (E + D) = 152574.406 / (152574.406 + 163000) = 0.4835
b) weight of debt = D / (E + D) = 163000 / (152574.406 + 163000) = 0.5165
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. Vedanta Iron and Steel'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 annual Interest Expense divided by the latest one-year annual average debt to get the simplified cost of debt.
As of Mar. 2026, Vedanta Iron and Steel's interest expense (positive number) was ₹18170 Mil. Its total Book Value of Debt (D) is ₹163000 Mil.
Cost of Debt = 18170 / 163000 = 11.1472%.
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 = 7020 / -22560 = -31.12%, which is less than 0%. Therefore it's set to 0%.
Vedanta Iron and Steel's Weighted Average Cost Of Capital (WACC) for Today is calculated as:
WACC
=
E / (E + D)
*
Cost of Equity
+
D / (E + D)
*
Cost of Debt
*
(1 - Tax Rate)
=
0.4835
*
13.02%
+
0.5165
*
11.1472%
*
(1 - 0%)
=
12.05%
* 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.
Vedanta Iron and Steel (NSE:VISL) has a WACC % of 12.05% as of Aug. 13, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Vedanta Iron and Steel and its competitors. This is near median its historical median of 12.05. Over the past decade, Vedanta Iron and Steel's WACC % has ranged from 11.15 to 12.94. According to the industry distribution chart, Vedanta Iron and Steel ranks #495 out of 638 companies in the Steel industry, placing it in the top 77.6%.
Is Vedanta Iron and Steel's WACC % too high?
Vedanta Iron and Steel's current WACC % of 12.05% is near median its 10-year median of 12.05. Over the past 10 years, this metric has ranged from a low of 11.15 to a high of 12.94. The Steel industry median WACC % is 8.03. Vedanta Iron and Steel's value of 12.05% is 50.2% above this industry median. Based on the distribution chart, Vedanta Iron and Steel ranks #495 out of 638 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Vedanta Iron and Steel has a GF Score™ of 2/100, reflecting its overall financial health beyond just this single metric.
How does Vedanta Iron and Steel's WACC % compare to NUE and STLD?
According to the Steel industry distribution chart, Vedanta Iron and Steel ranks #495 out of 638 companies for WACC %. This places Vedanta Iron and Steel in the lower half of its industry. The industry median WACC % is 8.03. Vedanta Iron and Steel's value of 12.05% is 50.2% above this benchmark. Historically, Vedanta Iron and Steel's own WACC % has ranged from 11.15 to 12.94 over the past decade. While the company's 10-year median is 12.05 vs. the industry median of 8.03, Vedanta Iron and Steel 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 Steel company?
The median WACC % among Steel companies is 8.03, based on 638 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. Vedanta Iron and Steel's current WACC % of 12.05% is 50.2% 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 Vedanta Iron and Steel and its competitors. For the Steel industry, the median WACC % is 8.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vedanta Iron and Steel's current WACC % is 12.05%, which is near median its own 10-year median of 12.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vedanta Iron and Steel stock overvalued right now?
Vedanta Iron and Steel (NSE:VISL) has a current WACC % of 12.05%. The current WACC % is 12.05%, which is near median its 10-year median of 12.05 and 50.2% above the Steel industry median of 8.03. Vedanta Iron and Steel's overall GF Score™ is 2/100 with 7 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 Vedanta Iron and Steel (NSE:VISL), the current WACC % is 12.05% as of Aug. 13, 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.
Vedanta Iron and Steel Ltd is a ferrous-resource company supplying the materials that underpin modern economies. Its products are Iron Ore, Met Coke, Pig Iron, and Steel & VAP. Along with its subsidiary, it engaged in supplying essential materials that power infrastructure, manufacturing, and nation-building across geographies. Its operations span India and Africa. The group focuses on iron ore exploration, mining, and processing in India and West Africa, alongside the production of high-quality steel, wire rods, TMT bars, pig iron, Ductile Iron (DI) Pipes, Ferro-silicon, cement, and metallurgical coke.
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