502587.BO WACC - Weighted Average Cost of Capital

The WACC of Nath Industries Ltd (502587.BO) is 11.6%.

The Cost of Equity of Nath Industries Ltd (502587.BO) is 15.20%.

The Cost of Debt of Nath Industries Ltd (502587.BO) is 11.50%.

	Range	Selected
Cost of equity	13.80% - 16.60%	15.20%
Tax rate	27.10% - 31.30%	29.20%
Cost of debt	10.90% - 12.10%	11.50%
WACC	10.8% - 12.4%	11.6%

WACC

502587.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	16.60%

Tax rate	27.10%	31.30%
Debt/Equity ratio	1.04	1.04
Cost of debt	10.90%	12.10%

After-tax WACC	10.8%	12.4%


Selected WACC	11.6%

502587.BO's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 502587.BO:

cost_of_equity (15.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.