506532.BO WACC - Weighted Average Cost of Capital

The WACC of Nitta Gelatin India Ltd (506532.BO) is 15.1%.

The Cost of Equity of Nitta Gelatin India Ltd (506532.BO) is 15.30%.

The Cost of Debt of Nitta Gelatin India Ltd (506532.BO) is 6.15%.

	Range	Selected
Cost of equity	13.80% - 16.80%	15.30%
Tax rate	26.80% - 28.30%	27.55%
Cost of debt	4.80% - 7.50%	6.15%
WACC	13.6% - 16.6%	15.1%

WACC

506532.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	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	16.80%

Tax rate	26.80%	28.30%
Debt/Equity ratio	0.02	0.02
Cost of debt	4.80%	7.50%

After-tax WACC	13.6%	16.6%


Selected WACC	15.1%

506532.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 506532.BO:

cost_of_equity (15.30%) = 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.