Muktinath Bikas Bank (XNEP:MNBBL) WACC %:20.98% (As of Aug. 11, 2026) — 12% Below Median

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XNEP:MNBBL Muktinath Bikas Bank Ltd XNEP:MNBBL
92 GF Score
Price NPR366.80
GF Value NPR384.20
Valuation Fairly Valued
! 1 Warning Sign
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What is Muktinath Bikas Bank WACC %?

Muktinath Bikas Bank XNEP:MNBBL +0.14% 92 WACC % is 20.98% as of Aug. 11, 2026, which is 12% below its 10-year median of 23.93. GuruFocus rates XNEP:MNBBL with a GF Score™ of 92/100 and a GF Value™ of NPR384.20 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,542 Banks companies, Muktinath Bikas Bank ranks worse than 81.19% on this metric.

As of today (2026-08-11), Muktinath Bikas Bank's weighted average cost of capital is 20.98%%. Muktinath Bikas Bank's ROIC % is 0.00% (calculated using TTM income statement data). Muktinath Bikas Bank 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.


Muktinath Bikas Bank  (XNEP:MNBBL) 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, Muktinath Bikas Bank's weighted average cost of capital is 20.98%%. Muktinath Bikas Bank's ROIC % is 0.00% (calculated using TTM income statement data). Muktinath Bikas Bank 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

Muktinath Bikas Bank WACC % Historical Data

* Premium members only.

The historical data trend for Muktinath Bikas Bank's WACC % can be seen below:

* 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.

Muktinath Bikas Bank WACC % Chart

Muktinath Bikas Bank Annual Data
Trend Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24 Jul25
WACC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.30 27.62 36.17 30.19 22.90

Muktinath Bikas Bank Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
WACC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.00 22.90 23.24 22.82 25.49

Muktinath Bikas Bank WACC % Competitor Comparison

For the Banks - Regional subindustry, Muktinath Bikas Bank'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.


Muktinath Bikas Bank WACC % vs Banks Industry

For the Banks industry and Financial Services sector, Muktinath Bikas Bank's WACC % distribution charts can be found below:

* The bar in red indicates where Muktinath Bikas Bank's WACC % falls into.


XNEP:MNBBL
92GF Score
Muktinath Bikas Bank Ltd XNEP:MNBBL
WACC % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Muktinath Bikas Bank 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, Muktinath Bikas Bank's market capitalization (E) is NPR33315.862 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 Apr. 2026, Muktinath Bikas Bank's latest one-year quarterly average Book Value of Debt (D) is NPR1427.2482 Mil.
a) weight of equity = E / (E + D) = 33315.862 / (33315.862 + 1427.2482) = 0.9589
b) weight of debt = D / (E + D) = 1427.2482 / (33315.862 + 1427.2482) = 0.0411

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 4.731%. 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. Muktinath Bikas Bank'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 = 4.731% + 1 * 6% = 10.731%

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 Apr. 2026, Muktinath Bikas Bank's interest expense (positive number) was NPR5367.545 Mil. Its total Book Value of Debt (D) is NPR1427.2482 Mil.
Cost of Debt = 5367.545 / 1427.2482 = 376.0765%.

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 = 797.458 / 2585.045 = 30.85%.

Muktinath Bikas Bank'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)
=0.9589*10.731%+0.0411*376.0765%*(1 - 30.85%)
=20.98%

* 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.

Frequently Asked Questions Learn more about WACC % →
What does a WACC % of 20.98% mean?
Muktinath Bikas Bank (XNEP:MNBBL) has a WACC % of 20.98% as of Aug. 11, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Muktinath Bikas Bank and its competitors. This is 12% below median its historical median of 23.93. Over the past decade, Muktinath Bikas Bank's WACC % has ranged from 8.30 to 36.17. According to the industry distribution chart, Muktinath Bikas Bank ranks #1252 out of 1542 companies in the Banks industry, placing it in the top 81.2%.
Is Muktinath Bikas Bank's WACC % too high?
Muktinath Bikas Bank's current WACC % of 20.98% is 12% below median its 10-year median of 23.93. Over the past 10 years, this metric has ranged from a low of 8.30 to a high of 36.17. The Banks industry median WACC % is 13.00. Muktinath Bikas Bank's value of 20.98% is 61.4% above this industry median. Based on the distribution chart, Muktinath Bikas Bank ranks #1252 out of 1542 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Muktinath Bikas Bank has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Muktinath Bikas Bank's WACC % compare to competitors?
According to the Banks industry distribution chart, Muktinath Bikas Bank ranks #1252 out of 1542 companies for WACC %. This places Muktinath Bikas Bank in the lower half of its industry. The industry median WACC % is 13.00. Muktinath Bikas Bank's value of 20.98% is 61.4% above this benchmark. Historically, Muktinath Bikas Bank's own WACC % has ranged from 8.30 to 36.17 over the past decade. While the company's 10-year median is 23.93 vs. the industry median of 13.00, Muktinath Bikas Bank 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 Banks company?
The median WACC % among Banks companies is 13.00, based on 1,542 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. Muktinath Bikas Bank's current WACC % of 20.98% is 61.4% 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 Muktinath Bikas Bank and its competitors. For the Banks industry, the median WACC % is 13.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muktinath Bikas Bank's current WACC % is 20.98%, which is 12% below median its own 10-year median of 23.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muktinath Bikas Bank stock overvalued right now?
Based on GuruFocus' analysis, Muktinath Bikas Bank (XNEP:MNBBL) is currently considered Fairly Valued. The stock's GF Value™ is NPR384.20, compared to a current price of NPR366.80 — trading 4.5% below its estimated fair value. The current WACC % is 20.98%, which is 12% below median its 10-year median of 23.93 and 61.4% above the Banks industry median of 13.00. Muktinath Bikas Bank's overall GF Score™ is 92/100 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 Muktinath Bikas Bank (XNEP:MNBBL), the current WACC % is 20.98% as of Aug. 11, 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 Muktinath Bikas Bank (XNEP:MNBBL) Overvalued in 2026?

Based on GuruFocus' analysis, Muktinath Bikas Bank stock appears to be undervalued. The current stock price of NPR366.80 is trading 4.5% below its estimated GF Value™ of NPR384.20. GuruFocus considers Muktinath Bikas Bank to be Fairly Valued.

Key valuation signals for XNEP:MNBBL:

  • WACC %: 20.98% (12% below median its 10-year median of 23.93)
  • GF Value™: NPR384.20 vs. price of NPR366.80 (4.5% below fair value)
  • GF Score™: 92/100 with 1 warning sign
  • Industry Position: 61.4% above the Banks median (#1252 of 1542)

No single metric tells the full story. See the XNEP:MNBBL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Muktinath Bikas Bank Business Description

Address Lazimpat, Kathmandu, NPL
Muktinath Bikas Bank Ltd is a national level development bank focused on providing comprehensive banking services to individuals and institutions. It offers financial services encompassing deposit acceptance, corporate and retail credit, project financing, hire purchase financing, trade financing, personal and corporate banking, and various other supplementary services. It aims to offer a secure and convenient means for individuals and businesses to oversee and access their funds, facilitating their diverse financial requirements. The bank has identified three segments, namely: Modern Banking, Small and Micro Banking, and Treasury Operations. It generates the majority of the revenue from the Banking segment.
92GF Score

Get the complete analysis for XNEP:MNBBL

WACC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NPR366.80
Price
NPR384.20
GF Value