DEEPAKNTR.NS
Deepak Nitrite Ltd
Price:  
2,069.20 
INR
Volume:  
176,598.00
India | Chemicals
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DEEPAKNTR.NS WACC - Weighted Average Cost of Capital

The WACC of Deepak Nitrite Ltd (DEEPAKNTR.NS) is 15.6%.

The Cost of Equity of Deepak Nitrite Ltd (DEEPAKNTR.NS) is 15.70%.
The Cost of Debt of Deepak Nitrite Ltd (DEEPAKNTR.NS) is 8.45%.

Range Selected
Cost of equity 14.00% - 17.40% 15.70%
Tax rate 25.60% - 25.60% 25.60%
Cost of debt 7.50% - 9.40% 8.45%
WACC 14.0% - 17.2% 15.6%
WACC

DEEPAKNTR.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.86 1.02
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.00% 17.40%
Tax rate 25.60% 25.60%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.50% 9.40%
After-tax WACC 14.0% 17.2%
Selected WACC 15.6%

DEEPAKNTR.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 DEEPAKNTR.NS:

cost_of_equity (15.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.