CCL.NS WACC - Weighted Average Cost of Capital

The WACC of CCL Products India Ltd (CCL.NS) is 13.8%.

The Cost of Equity of CCL Products India Ltd (CCL.NS) is 15.20%.

The Cost of Debt of CCL Products India Ltd (CCL.NS) is 6.75%.

	Range	Selected
Cost of equity	13.80% - 16.60%	15.20%
Tax rate	10.90% - 15.90%	13.40%
Cost of debt	5.20% - 8.30%	6.75%
WACC	12.4% - 15.2%	13.8%

WACC

CCL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	16.60%

Tax rate	10.90%	15.90%
Debt/Equity ratio	0.17	0.17
Cost of debt	5.20%	8.30%

After-tax WACC	12.4%	15.2%


Selected WACC	13.8%

CCL.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 CCL.NS:

cost_of_equity (15.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.