DEN.NS WACC - Weighted Average Cost of Capital

The WACC of DEN Networks Ltd (DEN.NS) is 17.1%.

The Cost of Equity of DEN Networks Ltd (DEN.NS) is 17.25%.

The Cost of Debt of DEN Networks Ltd (DEN.NS) is 7.50%.

	Range	Selected
Cost of equity	15.40% - 19.10%	17.25%
Tax rate	17.50% - 20.60%	19.05%
Cost of debt	7.50% - 7.50%	7.50%
WACC	15.2% - 18.9%	17.1%

WACC

DEN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.03	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.40%	19.10%

Tax rate	17.50%	20.60%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	7.50%

After-tax WACC	15.2%	18.9%


Selected WACC	17.1%

DEN.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 DEN.NS:

cost_of_equity (17.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.03) + 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.