DGCONTENT.NS
Digicontent Ltd
Price:  
45.82 
INR
Volume:  
70,464.00
India | Interactive Media & Services
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DGCONTENT.NS WACC - Weighted Average Cost of Capital

The WACC of Digicontent Ltd (DGCONTENT.NS) is 12.2%.

The Cost of Equity of Digicontent Ltd (DGCONTENT.NS) is 15.10%.
The Cost of Debt of Digicontent Ltd (DGCONTENT.NS) is 8.75%.

Range Selected
Cost of equity 14.00% - 16.20% 15.10%
Tax rate 33.80% - 35.90% 34.85%
Cost of debt 8.10% - 9.40% 8.75%
WACC 11.4% - 13.1% 12.2%
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 0.85 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.00% 16.20%
Tax rate 33.80% 35.90%
Debt/Equity ratio 0.43 0.43
Cost of debt 8.10% 9.40%
After-tax WACC 11.4% 13.1%
Selected WACC 12.2%

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 (15.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.85) + 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.