526315.BO WACC - Weighted Average Cost of Capital

The WACC of Divyashakti Granites Ltd (526315.BO) is 13.0%.

The Cost of Equity of Divyashakti Granites Ltd (526315.BO) is 13.35%.

The Cost of Debt of Divyashakti Granites Ltd (526315.BO) is 9.40%.

	Range	Selected
Cost of equity	11.90% - 14.80%	13.35%
Tax rate	25.20% - 26.50%	25.85%
Cost of debt	7.50% - 11.30%	9.40%
WACC	11.6% - 14.5%	13.0%

WACC

526315.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	14.80%

Tax rate	25.20%	26.50%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.50%	11.30%

After-tax WACC	11.6%	14.5%


Selected WACC	13.0%

526315.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 526315.BO:

cost_of_equity (13.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.