523676.BO WACC - Weighted Average Cost of Capital

The WACC of Golkunda Diamonds and Jewellery Ltd (523676.BO) is 10.6%.

The Cost of Equity of Golkunda Diamonds and Jewellery Ltd (523676.BO) is 12.30%.

The Cost of Debt of Golkunda Diamonds and Jewellery Ltd (523676.BO) is 6.35%.

	Range	Selected
Cost of equity	10.90% - 13.70%	12.30%
Tax rate	27.40% - 29.00%	28.20%
Cost of debt	4.90% - 7.80%	6.35%
WACC	9.2% - 11.9%	10.6%

WACC

523676.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.49	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	13.70%

Tax rate	27.40%	29.00%
Debt/Equity ratio	0.29	0.29
Cost of debt	4.90%	7.80%

After-tax WACC	9.2%	11.9%


Selected WACC	10.6%

523676.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 523676.BO:

cost_of_equity (12.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.