DBL.NS
Dilip Buildcon Ltd
Price:  
492.85 
INR
Volume:  
387,806
India | Construction & Engineering

DBL.NS WACC - Weighted Average Cost of Capital

The WACC of Dilip Buildcon Ltd (DBL.NS) is 13.3%.

The Cost of Equity of Dilip Buildcon Ltd (DBL.NS) is 18.35%.
The Cost of Debt of Dilip Buildcon Ltd (DBL.NS) is 12.35%.

RangeSelected
Cost of equity15.9% - 20.8%18.35%
Tax rate25.9% - 40.8%33.35%
Cost of debt12.1% - 12.6%12.35%
WACC12.4% - 14.1%13.3%
WACC

DBL.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.091.39
Additional risk adjustments0.0%0.5%
Cost of equity15.9%20.8%
Tax rate25.9%40.8%
Debt/Equity ratio
1.011.01
Cost of debt12.1%12.6%
After-tax WACC12.4%14.1%
Selected WACC13.3%

DBL.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 DBL.NS:

cost_of_equity (18.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.09) + 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.