DHAMPURSUG.NS WACC - Weighted Average Cost of Capital

The WACC of Dhampur Sugar Mills Ltd (DHAMPURSUG.NS) is 10.1%.

The Cost of Equity of Dhampur Sugar Mills Ltd (DHAMPURSUG.NS) is 15.80%.

The Cost of Debt of Dhampur Sugar Mills Ltd (DHAMPURSUG.NS) is 7.85%.

	Range	Selected
Cost of equity	12.30% - 19.30%	15.80%
Tax rate	28.10% - 28.80%	28.45%
Cost of debt	5.20% - 10.50%	7.85%
WACC	7.5% - 12.7%	10.1%

WACC

DHAMPURSUG.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.65	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	19.30%

Tax rate	28.10%	28.80%
Debt/Equity ratio	1.27	1.27
Cost of debt	5.20%	10.50%

After-tax WACC	7.5%	12.7%


Selected WACC	10.1%

DHAMPURSUG.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 DHAMPURSUG.NS:

cost_of_equity (15.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.