541302.BO WACC - Weighted Average Cost of Capital

The WACC of Dhruv Consultancy Services Ltd (541302.BO) is 12.1%.

The Cost of Equity of Dhruv Consultancy Services Ltd (541302.BO) is 12.55%.

The Cost of Debt of Dhruv Consultancy Services Ltd (541302.BO) is 12.65%.

	Range	Selected
Cost of equity	11.30% - 13.80%	12.55%
Tax rate	31.30% - 32.10%	31.70%
Cost of debt	11.60% - 13.70%	12.65%
WACC	10.9% - 13.2%	12.1%

WACC

541302.BO WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.55	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	13.80%

Tax rate	31.30%	32.10%
Debt/Equity ratio	0.13	0.13
Cost of debt	11.60%	13.70%

After-tax WACC	10.9%	13.2%


Selected WACC	12.1%

541302.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 541302.BO:

cost_of_equity (12.55%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * 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.