CONFIPET.NS
Confidence Petroleum India Ltd
Price:  
51.62 
INR
Volume:  
218,449.00
India | Machinery
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CONFIPET.NS WACC - Weighted Average Cost of Capital

The WACC of Confidence Petroleum India Ltd (CONFIPET.NS) is 16.4%.

The Cost of Equity of Confidence Petroleum India Ltd (CONFIPET.NS) is 18.70%.
The Cost of Debt of Confidence Petroleum India Ltd (CONFIPET.NS) is 13.85%.

Range Selected
Cost of equity 17.20% - 20.20% 18.70%
Tax rate 24.90% - 25.60% 25.25%
Cost of debt 10.50% - 17.20% 13.85%
WACC 14.7% - 18.2% 16.4%
WACC

CONFIPET.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.24 1.32
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.20% 20.20%
Tax rate 24.90% 25.60%
Debt/Equity ratio 0.37 0.37
Cost of debt 10.50% 17.20%
After-tax WACC 14.7% 18.2%
Selected WACC 16.4%

CONFIPET.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 CONFIPET.NS:

cost_of_equity (18.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.24) + 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.