DBREALTY.NS WACC - Weighted Average Cost of Capital

The WACC of D B Realty Ltd (DBREALTY.NS) is 12.2%.

The Cost of Equity of D B Realty Ltd (DBREALTY.NS) is 13.60%.

The Cost of Debt of D B Realty Ltd (DBREALTY.NS) is 9.20%.

	Range	Selected
Cost of equity	12.20% - 15.00%	13.60%
Tax rate	13.80% - 29.40%	21.60%
Cost of debt	7.90% - 10.50%	9.20%
WACC	11.0% - 13.3%	12.2%

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	0.65	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	15.00%

Tax rate	13.80%	29.40%
Debt/Equity ratio	0.28	0.28
Cost of debt	7.90%	10.50%

After-tax WACC	11.0%	13.3%


Selected WACC	12.2%

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 (13.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.