526721.BO
Nicco Parks & Resorts Ltd
Price:  
114.90 
INR
Volume:  
1,617.00
India | Hotels, Restaurants & Leisure
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526721.BO WACC - Weighted Average Cost of Capital

The WACC of Nicco Parks & Resorts Ltd (526721.BO) is 10.4%.

The Cost of Equity of Nicco Parks & Resorts Ltd (526721.BO) is 17.15%.
The Cost of Debt of Nicco Parks & Resorts Ltd (526721.BO) is 5.00%.

Range Selected
Cost of equity 15.50% - 18.80% 17.15%
Tax rate 24.60% - 26.20% 25.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.6% - 11.2% 10.4%
WACC

526721.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.04 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.50% 18.80%
Tax rate 24.60% 26.20%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 9.6% 11.2%
Selected WACC 10.4%

526721.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 526721.BO:

cost_of_equity (17.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.