ALBERTDAVD.NS WACC - Weighted Average Cost of Capital

The WACC of Albert David Ltd (ALBERTDAVD.NS) is 16.9%.

The Cost of Equity of Albert David Ltd (ALBERTDAVD.NS) is 16.95%.

The Cost of Debt of Albert David Ltd (ALBERTDAVD.NS) is 9.95%.

	Range	Selected
Cost of equity	14.10% - 19.80%	16.95%
Tax rate	24.30% - 26.80%	25.55%
Cost of debt	7.50% - 12.40%	9.95%
WACC	14.1% - 19.8%	16.9%

WACC

ALBERTDAVD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.87	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	19.80%

Tax rate	24.30%	26.80%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	12.40%

After-tax WACC	14.1%	19.8%


Selected WACC	16.9%

ALBERTDAVD.NS'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 ALBERTDAVD.NS:

cost_of_equity (16.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.