526721.BO
Nicco Parks & Resorts Ltd
Price:  
116.95 
INR
Volume:  
1,692.00
India | Hotels, Restaurants & Leisure
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

526721.BO WACC - Weighted Average Cost of Capital

The WACC of Nicco Parks & Resorts Ltd (526721.BO) is 9.4%.

The Cost of Equity of Nicco Parks & Resorts Ltd (526721.BO) is 13.20%.
The Cost of Debt of Nicco Parks & Resorts Ltd (526721.BO) is 7.50%.

Range Selected
Cost of equity 11.20% - 15.20% 13.20%
Tax rate 25.00% - 26.20% 25.60%
Cost of debt 7.50% - 7.50% 7.50%
WACC 8.4% - 10.3% 9.4%
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 0.52 0.79
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.20% 15.20%
Tax rate 25.00% 26.20%
Debt/Equity ratio 1 1
Cost of debt 7.50% 7.50%
After-tax WACC 8.4% 10.3%
Selected WACC 9.4%

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 (13.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.52) + 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.