CCL.NS WACC - Weighted Average Cost of Capital

The WACC of CCL Products India Ltd (CCL.NS) is 13.5%.

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 6.05%.

	Range	Selected
Cost of equity	13.70% - 16.70%	15.20%
Tax rate	16.90% - 22.00%	19.45%
Cost of debt	4.00% - 8.10%	6.05%
WACC	11.9% - 15.0%	13.5%

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	0.82	0.95

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

Tax rate	16.90%	22.00%
Debt/Equity ratio	0.2	0.2
Cost of debt	4.00%	8.10%

After-tax WACC	11.9%	15.0%


Selected WACC	13.5%

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 (0.82) + 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.