523676.BO WACC - Weighted Average Cost of Capital

The WACC of Golkunda Diamonds and Jewellery Ltd (523676.BO) is 11.0%.

The Cost of Equity of Golkunda Diamonds and Jewellery Ltd (523676.BO) is 12.75%.

The Cost of Debt of Golkunda Diamonds and Jewellery Ltd (523676.BO) is 6.85%.

	Range	Selected
Cost of equity	11.40% - 14.10%	12.75%
Tax rate	26.30% - 27.90%	27.10%
Cost of debt	5.80% - 7.90%	6.85%
WACC	9.8% - 12.2%	11.0%

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	0.55	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	14.10%

Tax rate	26.30%	27.90%
Debt/Equity ratio	0.29	0.29
Cost of debt	5.80%	7.90%

After-tax WACC	9.8%	12.2%


Selected WACC	11.0%

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 (12.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.