COROMANDEL.NS
Coromandel International Ltd
Price:  
2,330.10 
INR
Volume:  
854,221.00
India | Chemicals
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COROMANDEL.NS WACC - Weighted Average Cost of Capital

The WACC of Coromandel International Ltd (COROMANDEL.NS) is 16.5%.

The Cost of Equity of Coromandel International Ltd (COROMANDEL.NS) is 16.55%.
The Cost of Debt of Coromandel International Ltd (COROMANDEL.NS) is 15.05%.

Range Selected
Cost of equity 15.00% - 18.10% 16.55%
Tax rate 25.30% - 25.40% 25.35%
Cost of debt 7.50% - 22.60% 15.05%
WACC 14.9% - 18.1% 16.5%
WACC

COROMANDEL.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.98 1.1
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.00% 18.10%
Tax rate 25.30% 25.40%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.50% 22.60%
After-tax WACC 14.9% 18.1%
Selected WACC 16.5%

COROMANDEL.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 COROMANDEL.NS:

cost_of_equity (16.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.98) + 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.