DGCONTENT.NS WACC - Weighted Average Cost of Capital

The WACC of Digicontent Ltd (DGCONTENT.NS) is 10.1%.

The Cost of Equity of Digicontent Ltd (DGCONTENT.NS) is 13.25%.

The Cost of Debt of Digicontent Ltd (DGCONTENT.NS) is 9.95%.

	Range	Selected
Cost of equity	10.40% - 16.10%	13.25%
Tax rate	36.40% - 44.30%	40.35%
Cost of debt	9.90% - 10.00%	9.95%
WACC	8.6% - 11.5%	10.1%

WACC

DGCONTENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.43	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	16.10%

Tax rate	36.40%	44.30%
Debt/Equity ratio	0.77	0.77
Cost of debt	9.90%	10.00%

After-tax WACC	8.6%	11.5%


Selected WACC	10.1%

DGCONTENT.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 DGCONTENT.NS:

cost_of_equity (13.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.43) + 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.