DBREALTY.NS WACC - Weighted Average Cost of Capital

The WACC of D B Realty Ltd (DBREALTY.NS) is 16.2%.

The Cost of Equity of D B Realty Ltd (DBREALTY.NS) is 18.50%.

The Cost of Debt of D B Realty Ltd (DBREALTY.NS) is 8.65%.

	Range	Selected
Cost of equity	16.30% - 20.70%	18.50%
Tax rate	24.50% - 42.40%	33.45%
Cost of debt	7.00% - 10.30%	8.65%
WACC	14.3% - 18.1%	16.2%

WACC

DBREALTY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.13	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.30%	20.70%

Tax rate	24.50%	42.40%
Debt/Equity ratio	0.21	0.21
Cost of debt	7.00%	10.30%

After-tax WACC	14.3%	18.1%


Selected WACC	16.2%

DBREALTY.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 DBREALTY.NS:

cost_of_equity (18.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.13) + 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.