517514.BO WACC - Weighted Average Cost of Capital

The WACC of D & H India Ltd (517514.BO) is 13.4%.

The Cost of Equity of D & H India Ltd (517514.BO) is 14.70%.

The Cost of Debt of D & H India Ltd (517514.BO) is 10.30%.

	Range	Selected
Cost of equity	13.50% - 15.90%	14.70%
Tax rate	14.50% - 21.30%	17.90%
Cost of debt	10.00% - 10.60%	10.30%
WACC	12.5% - 14.3%	13.4%

WACC

517514.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.8	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	15.90%

Tax rate	14.50%	21.30%
Debt/Equity ratio	0.27	0.27
Cost of debt	10.00%	10.60%

After-tax WACC	12.5%	14.3%


Selected WACC	13.4%

517514.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 517514.BO:

cost_of_equity (14.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.