DGCONTENT.NS WACC - Weighted Average Cost of Capital

The WACC of Digicontent Ltd (DGCONTENT.NS) is 11.7%.

The Cost of Equity of Digicontent Ltd (DGCONTENT.NS) is 15.85%.

The Cost of Debt of Digicontent Ltd (DGCONTENT.NS) is 7.30%.

	Range	Selected
Cost of equity	14.10% - 17.60%	15.85%
Tax rate	25.80% - 34.10%	29.95%
Cost of debt	6.50% - 8.10%	7.30%
WACC	10.5% - 12.9%	11.7%

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	0.87	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	17.60%

Tax rate	25.80%	34.10%
Debt/Equity ratio	0.63	0.63
Cost of debt	6.50%	8.10%

After-tax WACC	10.5%	12.9%


Selected WACC	11.7%

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 (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.