511355.BO
India Cements Capital Ltd
Price:  
14.85 
INR
Volume:  
3,400.00
India | Consumer Finance
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511355.BO WACC - Weighted Average Cost of Capital

The WACC of India Cements Capital Ltd (511355.BO) is 7.7%.

The Cost of Equity of India Cements Capital Ltd (511355.BO) is 11.85%.
The Cost of Debt of India Cements Capital Ltd (511355.BO) is 5.80%.

Range Selected
Cost of equity 9.90% - 13.80% 11.85%
Tax rate 15.10% - 19.70% 17.40%
Cost of debt 4.00% - 7.60% 5.80%
WACC 6.1% - 9.3% 7.7%
WACC

511355.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.36 0.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.90% 13.80%
Tax rate 15.10% 19.70%
Debt/Equity ratio 1.39 1.39
Cost of debt 4.00% 7.60%
After-tax WACC 6.1% 9.3%
Selected WACC 7.7%

511355.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 511355.BO:

cost_of_equity (11.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.