507813.BO
National Oxygen Ltd
Price:  
115.00 
INR
Volume:  
156.00
India | Chemicals
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507813.BO WACC - Weighted Average Cost of Capital

The WACC of National Oxygen Ltd (507813.BO) is 10.6%.

The Cost of Equity of National Oxygen Ltd (507813.BO) is 13.25%.
The Cost of Debt of National Oxygen Ltd (507813.BO) is 7.45%.

Range Selected
Cost of equity 12.10% - 14.40% 13.25%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 7.00% - 7.90% 7.45%
WACC 9.7% - 11.5% 10.6%
WACC

507813.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.63 0.71
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.10% 14.40%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.49 0.49
Cost of debt 7.00% 7.90%
After-tax WACC 9.7% 11.5%
Selected WACC 10.6%

507813.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 507813.BO:

cost_of_equity (13.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.