CEBBCO.NS WACC - Weighted Average Cost of Capital

The WACC of Commercial Engineers & Body Builders Co Ltd (CEBBCO.NS) is 15.2%.

The Cost of Equity of Commercial Engineers & Body Builders Co Ltd (CEBBCO.NS) is 16.30%.

The Cost of Debt of Commercial Engineers & Body Builders Co Ltd (CEBBCO.NS) is 13.65%.

	Range	Selected
Cost of equity	14.70% - 17.90%	16.30%
Tax rate	11.30% - 25.00%	18.15%
Cost of debt	11.60% - 15.70%	13.65%
WACC	13.7% - 16.6%	15.2%

WACC

CEBBCO.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	1.03	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.70%	17.90%

Tax rate	11.30%	25.00%
Debt/Equity ratio	0.27	0.27
Cost of debt	11.60%	15.70%

After-tax WACC	13.7%	16.6%


Selected WACC	15.2%

CEBBCO.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 CEBBCO.NS:

cost_of_equity (16.30%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (1.03) + 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.