CMICABLES.NS WACC - Weighted Average Cost of Capital

The WACC of CMI Ltd (CMICABLES.NS) is 8.6%.

The Cost of Equity of CMI Ltd (CMICABLES.NS) is 175.50%.

The Cost of Debt of CMI Ltd (CMICABLES.NS) is 7.50%.

	Range	Selected
Cost of equity	67.50% - 283.50%	175.50%
Tax rate	14.40% - 18.60%	16.50%
Cost of debt	7.00% - 8.00%	7.50%
WACC	6.9% - 10.4%	8.6%

WACC

CMICABLES.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	7.29	29.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	67.50%	283.50%

Tax rate	14.40%	18.60%
Debt/Equity ratio	70.13	70.13
Cost of debt	7.00%	8.00%

After-tax WACC	6.9%	10.4%


Selected WACC	8.6%

CMICABLES.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 CMICABLES.NS:

cost_of_equity (175.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (7.29) + 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.