DBREALTY.NS WACC - Weighted Average Cost of Capital

The WACC of D B Realty Ltd (DBREALTY.NS) is 17.0%.

The Cost of Equity of D B Realty Ltd (DBREALTY.NS) is 18.65%.

The Cost of Debt of D B Realty Ltd (DBREALTY.NS) is 19.20%.

	Range	Selected
Cost of equity	16.70% - 20.60%	18.65%
Tax rate	24.50% - 42.40%	33.45%
Cost of debt	11.50% - 26.90%	19.20%
WACC	14.6% - 19.3%	17.0%

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	1.18	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.70%	20.60%

Tax rate	24.50%	42.40%
Debt/Equity ratio	0.34	0.34
Cost of debt	11.50%	26.90%

After-tax WACC	14.6%	19.3%


Selected WACC	17.0%

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 (18.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.18) + 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.