DBL.NS WACC - Weighted Average Cost of Capital

The WACC of Dilip Buildcon Ltd (DBL.NS) is 14.2%.

The Cost of Equity of Dilip Buildcon Ltd (DBL.NS) is 22.95%.

The Cost of Debt of Dilip Buildcon Ltd (DBL.NS) is 12.65%.

	Range	Selected
Cost of equity	18.60% - 27.30%	22.95%
Tax rate	25.90% - 40.80%	33.35%
Cost of debt	12.10% - 13.20%	12.65%
WACC	12.8% - 15.5%	14.2%

WACC

DBL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.41	2.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.60%	27.30%

Tax rate	25.90%	40.80%
Debt/Equity ratio	1.52	1.52
Cost of debt	12.10%	13.20%

After-tax WACC	12.8%	15.5%


Selected WACC	14.2%

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 (22.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.41) + 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.