DCMNVL.NS WACC - Weighted Average Cost of Capital

The WACC of DCM Nouvelle Ltd (DCMNVL.NS) is 7.6%.

The Cost of Equity of DCM Nouvelle Ltd (DCMNVL.NS) is 13.20%.

The Cost of Debt of DCM Nouvelle Ltd (DCMNVL.NS) is 6.55%.

	Range	Selected
Cost of equity	11.30% - 15.10%	13.20%
Tax rate	31.20% - 35.40%	33.30%
Cost of debt	6.10% - 7.00%	6.55%
WACC	6.8% - 8.4%	7.6%

WACC

DCMNVL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.54	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	15.10%

Tax rate	31.20%	35.40%
Debt/Equity ratio	1.72	1.72
Cost of debt	6.10%	7.00%

After-tax WACC	6.8%	8.4%


Selected WACC	7.6%

DCMNVL.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 DCMNVL.NS:

cost_of_equity (13.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.54) + 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.