Sanima Middle Tamor HydropowerXNEP:TAMOR -0.05%39 WACC % is 10.23% as of Jul. 12, 2026, which is 7% above its 10-year median of 9.55. GuruFocus rates XNEP:TAMOR with a GF Score™ of 39/100. The stock has 4 warning signs investors should review. Among 479 Utilities - Independent Power Producers companies, Sanima Middle Tamor Hydropower ranks worse than 75.37% on this metric.
As of today (2026-07-12), Sanima Middle Tamor Hydropower's weighted average cost of capital is 10.23%%. Sanima Middle Tamor Hydropower's ROIC % is 10.22% (calculated using TTM income statement data).
Sanima Middle Tamor Hydropower 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.
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, Sanima Middle Tamor Hydropower's weighted average cost of capital is 10.23%%. Sanima Middle Tamor Hydropower's ROIC % is 10.22% (calculated using TTM income statement data).
Sanima Middle Tamor Hydropower 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
Sanima Middle Tamor Hydropower 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 Utilities - Renewable subindustry, Sanima Middle Tamor Hydropower'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.
Sanima Middle Tamor Hydropower WACC % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Sanima Middle Tamor Hydropower's WACC % distribution charts can be found below:
* The bar in red indicates where Sanima Middle Tamor Hydropower'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, Sanima Middle Tamor Hydropower's market capitalization (E) is NPR14629.662 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, Sanima Middle Tamor Hydropower's latest one-year quarterly average Book Value of Debt (D) is NPR9492.195 Mil.
a) weight of equity = E / (E + D) = 14629.662 / (14629.662 + 9492.195) = 0.6065
b) weight of debt = D / (E + D) = 9492.195 / (14629.662 + 9492.195) = 0.3935
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 4.561%. 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. Sanima Middle Tamor Hydropower'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 = 4.561% + 1 * 6% = 10.561%
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, Sanima Middle Tamor Hydropower's interest expense (positive number) was NPR922.858 Mil. Its total Book Value of Debt (D) is NPR9492.195 Mil.
Cost of Debt = 922.858 / 9492.195 = 9.7223%.
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 = 0.008 / 475.582 = 0%.
* 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.
Sanima Middle Tamor Hydropower (XNEP:TAMOR) has a WACC % of 10.23% as of Jul. 12, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Sanima Middle Tamor Hydropower and its competitors. This is near median its historical median of 9.55. Over the past decade, Sanima Middle Tamor Hydropower's WACC % has ranged from 9.55 to 10.23. According to the industry distribution chart, Sanima Middle Tamor Hydropower ranks #361 out of 479 companies in the Utilities - Independent Power Producers industry, placing it in the top 75.4%.
Is Sanima Middle Tamor Hydropower's WACC % too high?
Sanima Middle Tamor Hydropower's current WACC % of 10.23% is near median its 10-year median of 9.55. Over the past 10 years, this metric has ranged from a low of 9.55 to a high of 10.23. The Utilities - Independent Power Producers industry median WACC % is 8.01. Sanima Middle Tamor Hydropower's value of 10.23% is 27.7% above this industry median. Based on the distribution chart, Sanima Middle Tamor Hydropower ranks #361 out of 479 companies in the Utilities - Independent Power Producers industry, which is in the bottom quartile relative to peers. Overall, Sanima Middle Tamor Hydropower has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Sanima Middle Tamor Hydropower's WACC % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Sanima Middle Tamor Hydropower ranks #361 out of 479 companies for WACC %. This places Sanima Middle Tamor Hydropower in the lower half of its industry. The industry median WACC % is 8.01. Sanima Middle Tamor Hydropower's value of 10.23% is 27.7% above this benchmark. Historically, Sanima Middle Tamor Hydropower's own WACC % has ranged from 9.55 to 10.23 over the past decade. While the company's 10-year median is 9.55 vs. the industry median of 8.01, Sanima Middle Tamor Hydropower 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 an Utilities - Independent Power Producers company?
The median WACC % among Utilities - Independent Power Producers companies is 8.01, based on 479 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. Sanima Middle Tamor Hydropower's current WACC % of 10.23% is 27.7% 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 Sanima Middle Tamor Hydropower and its competitors. For the Utilities - Independent Power Producers industry, the median WACC % is 8.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sanima Middle Tamor Hydropower's current WACC % is 10.23%, which is near median its own 10-year median of 9.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanima Middle Tamor Hydropower stock overvalued right now?
Sanima Middle Tamor Hydropower (XNEP:TAMOR) has a current WACC % of 10.23%. The current WACC % is 10.23%, which is near median its 10-year median of 9.55 and 27.7% above the Utilities - Independent Power Producers industry median of 8.01. Sanima Middle Tamor Hydropower's overall GF Score™ is 39/100 with 4 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 Sanima Middle Tamor Hydropower (XNEP:TAMOR), the current WACC % is 10.23% as of Jul. 12, 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.
Sanima Middle Tamor Hydropower Business Description
Sanima Middle Tamor Hydropower Ltd is a Special Purpose Vehicle (SPV) Company for the implementation and operation of the Sanima Middle Tamor Hydropower Project. The company is principally engaged in generating and selling hydroelectricity to the Nepal Electricity Authority. It currently operates the Middle Tamor Hydropower Project (MTHP), which is a run-of-river (RoR) project with an installed capacity of 73 MW. The headworks of the project are located in Phungling Municipality and Phaktanglung Rural Municipality and the Powerhouse (PH) is located in Mikwa Khola Rural Municipality at the right bank of the Tamor River in Taplejung district.
39GF Score
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