CONSOFINVT.NS
Consolidated Finvest & Holdings Ltd
Price:  
205.00 
INR
Volume:  
6,646.00
India | Capital Markets
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

CONSOFINVT.NS WACC - Weighted Average Cost of Capital

The WACC of Consolidated Finvest & Holdings Ltd (CONSOFINVT.NS) is 11.3%.

The Cost of Equity of Consolidated Finvest & Holdings Ltd (CONSOFINVT.NS) is 19.10%.
The Cost of Debt of Consolidated Finvest & Holdings Ltd (CONSOFINVT.NS) is 5.00%.

Range Selected
Cost of equity 17.10% - 21.10% 19.10%
Tax rate 22.40% - 35.40% 28.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 10.5% - 12.1% 11.3%
WACC

CONSOFINVT.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.23 1.42
Additional risk adjustments 0.0% 0.5%
Cost of equity 17.10% 21.10%
Tax rate 22.40% 35.40%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 10.5% 12.1%
Selected WACC 11.3%

CONSOFINVT.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 CONSOFINVT.NS:

cost_of_equity (19.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.23) + 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.