504908.BO
Duncan Engineering Ltd
Price:  
422 
INR
Volume:  
1,606
India | Auto Components

504908.BO WACC - Weighted Average Cost of Capital

The WACC of Duncan Engineering Ltd (504908.BO) is 14.9%.

The Cost of Equity of Duncan Engineering Ltd (504908.BO) is 14.8%.
The Cost of Debt of Duncan Engineering Ltd (504908.BO) is 26.25%.

RangeSelected
Cost of equity13.5% - 16.1%14.8%
Tax rate24.7% - 25.9%25.3%
Cost of debt7.6% - 44.9%26.25%
WACC13.3% - 16.4%14.9%
WACC

504908.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.790.88
Additional risk adjustments0.0%0.5%
Cost of equity13.5%16.1%
Tax rate24.7%25.9%
Debt/Equity ratio
0.020.02
Cost of debt7.6%44.9%
After-tax WACC13.3%16.4%
Selected WACC14.9%

504908.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 504908.BO:

cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.