CHEMBOND.NS WACC - Weighted Average Cost of Capital
The WACC of Chembond Chemicals Ltd (CHEMBOND.NS) is 14.6%.
| Range | Selected | |
| Cost of equity | 13.4% - 15.8% | 14.6% |
| Tax rate | 27.5% - 29.8% | 28.65% |
| Cost of debt | 7.5% - 34.0% | 20.75% |
| WACC | 13.3% - 15.9% | 14.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.79 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.4% | 15.8% |
| Tax rate | 27.5% | 29.8% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 7.5% | 34.0% |
| After-tax WACC | 13.3% | 15.9% |
| Selected WACC | 14.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CHEMBOND.NS | Chembond Chemicals Ltd | 0.02 | 0.41 | 0.41 |
| 506532.BO | Nitta Gelatin India Ltd | 0.02 | 0.78 | 0.77 |
| 530125.BO | Samrat Pharmachem Ltd | 0.07 | 0.73 | 0.7 |
| 530845.BO | Sunshield Chemicals Ltd | 0.15 | 2.02 | 1.83 |
| 541167.BO | Yasho Industries Ltd | 0.16 | 0.84 | 0.76 |
| AMBICAAGAR.NS | Ambica Agarbathies Aroma & Industries Ltd | 1.32 | 0.53 | 0.27 |
| SHALPAINTS.NS | Shalimar Paints Ltd | 0.12 | 0.71 | 0.65 |
| SHREEPUSHK.NS | Shree Pushkar Chemicals & Fertilisers Ltd | 0.11 | 1.36 | 1.26 |
| VIKASECO.NS | Vikas Ecotech Ltd | 0.05 | 0.46 | 0.45 |
| XPROINDIA.NS | Xpro India Ltd | 0.02 | 1.13 | 1.11 |
| Low | High | |
| Unlevered beta | 0.68 | 0.76 |
| Relevered beta | 0.69 | 0.78 |
| Adjusted relevered beta | 0.79 | 0.85 |
CHEMBOND.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 CHEMBOND.NS:
cost_of_equity (14.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.