DBSTOCKBRO.NS WACC - Weighted Average Cost of Capital

The WACC of DB (International) Stock Brokers Ltd (DBSTOCKBRO.NS) is 15.3%.

The Cost of Equity of DB (International) Stock Brokers Ltd (DBSTOCKBRO.NS) is 15.40%.

The Cost of Debt of DB (International) Stock Brokers Ltd (DBSTOCKBRO.NS) is 19.65%.

	Range	Selected
Cost of equity	13.80% - 17.00%	15.40%
Tax rate	25.10% - 28.90%	27.00%
Cost of debt	7.00% - 32.30%	19.65%
WACC	13.4% - 17.2%	15.3%

WACC

DBSTOCKBRO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	17.00%

Tax rate	25.10%	28.90%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.00%	32.30%

After-tax WACC	13.4%	17.2%


Selected WACC	15.3%

DBSTOCKBRO.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 DBSTOCKBRO.NS:

cost_of_equity (15.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.