DELTAMAGNT.NS WACC - Weighted Average Cost of Capital

The WACC of Delta Manufacturing Ltd (DELTAMAGNT.NS) is 10.7%.

The Cost of Equity of Delta Manufacturing Ltd (DELTAMAGNT.NS) is 12.35%.

The Cost of Debt of Delta Manufacturing Ltd (DELTAMAGNT.NS) is 7.35%.

	Range	Selected
Cost of equity	9.90% - 14.80%	12.35%
Tax rate	9.60% - 16.50%	13.05%
Cost of debt	7.00% - 7.70%	7.35%
WACC	8.9% - 12.5%	10.7%

WACC

DELTAMAGNT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.36	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	14.80%

Tax rate	9.60%	16.50%
Debt/Equity ratio	0.38	0.38
Cost of debt	7.00%	7.70%

After-tax WACC	8.9%	12.5%


Selected WACC	10.7%

DELTAMAGNT.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 DELTAMAGNT.NS:

cost_of_equity (12.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.