522292.BO WACC - Weighted Average Cost of Capital

The WACC of Chandni Textiles Engineering Industries Ltd (522292.BO) is 12.7%.

The Cost of Equity of Chandni Textiles Engineering Industries Ltd (522292.BO) is 13.30%.

The Cost of Debt of Chandni Textiles Engineering Industries Ltd (522292.BO) is 6.95%.

	Range	Selected
Cost of equity	11.90% - 14.70%	13.30%
Tax rate	21.60% - 28.30%	24.95%
Cost of debt	5.20% - 8.70%	6.95%
WACC	11.3% - 14.1%	12.7%

WACC

522292.BO WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.63	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	14.70%

Tax rate	21.60%	28.30%
Debt/Equity ratio	0.08	0.08
Cost of debt	5.20%	8.70%

After-tax WACC	11.3%	14.1%


Selected WACC	12.7%

522292.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 522292.BO:

cost_of_equity (13.30%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * 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.