CCL.NS WACC - Weighted Average Cost of Capital

The WACC of CCL Products India Ltd (CCL.NS) is 12.9%.

The Cost of Equity of CCL Products India Ltd (CCL.NS) is 14.05%.

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

	Range	Selected
Cost of equity	13.00% - 15.10%	14.05%
Tax rate	10.90% - 15.90%	13.40%
Cost of debt	5.20% - 8.30%	6.75%
WACC	11.8% - 13.9%	12.9%

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	0.74	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.00%	15.10%

Tax rate	10.90%	15.90%
Debt/Equity ratio	0.16	0.16
Cost of debt	5.20%	8.30%

After-tax WACC	11.8%	13.9%


Selected WACC	12.9%

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 (14.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.74) + 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.