506532.BO
Nitta Gelatin India Ltd
Price:  
775.00 
INR
Volume:  
5,037.00
India | Chemicals
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506532.BO WACC - Weighted Average Cost of Capital

The WACC of Nitta Gelatin India Ltd (506532.BO) is 15.3%.

The Cost of Equity of Nitta Gelatin India Ltd (506532.BO) is 15.55%.
The Cost of Debt of Nitta Gelatin India Ltd (506532.BO) is 5.75%.

Range Selected
Cost of equity 13.80% - 17.30% 15.55%
Tax rate 26.80% - 28.30% 27.55%
Cost of debt 4.00% - 7.50% 5.75%
WACC 13.6% - 17.0% 15.3%
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 0.84 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.80% 17.30%
Tax rate 26.80% 28.30%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 7.50%
After-tax WACC 13.6% 17.0%
Selected WACC 15.3%

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 (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.