526821.BO WACC - Weighted Average Cost of Capital

The WACC of Dai Ichi Karkaria Ltd (526821.BO) is 14.8%.

The Cost of Equity of Dai Ichi Karkaria Ltd (526821.BO) is 15.20%.

The Cost of Debt of Dai Ichi Karkaria Ltd (526821.BO) is 10.80%.

	Range	Selected
Cost of equity	13.70% - 16.70%	15.20%
Tax rate	7.90% - 14.50%	11.20%
Cost of debt	9.50% - 12.10%	10.80%
WACC	13.4% - 16.3%	14.8%

WACC

526821.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.82	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	16.70%

Tax rate	7.90%	14.50%
Debt/Equity ratio	0.06	0.06
Cost of debt	9.50%	12.10%

After-tax WACC	13.4%	16.3%


Selected WACC	14.8%

526821.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 526821.BO:

cost_of_equity (15.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.